Duke Capital recurring cash revenue rises, total declines

(Sharecast News) - Duke Capital, a hybrid capital provider for small to medium enterprises in Europe and North America, reported a 4% year-on-year increase in recurring cash revenue to £12.7m in its interim results on Monday. The AIM-traded firm said total cash revenue declined, however, by 4% to £13.5m for the six months ended 30 September, reflecting fewer investment exits compared to the prior period.

Free cash flow for the period was £5.9m, down from £7.9m in the same period last year.

Despite the lower cash flow, Duke maintained its interim dividend of 1.4p per share.

Operationally, Duke said it deployed over £15m into its existing capital partners and completed a £23.5m fundraise after the reporting period.

The board said the new funds would support portfolio merger and acquisition activity, and advance its non-dilutive funding strategy aimed at scaling its operations.

It highlighted a robust pipeline of 'buy-and-build' opportunities within its diversified portfolio, which the board said remained well-positioned for resilience and continued growth.

"During the first six months of the 2025 financial year, we have continued to prove our ability to deliver," said chairman Nigel Birrell.

"We continue to increase recurring cash revenue, driven by the team's successful execution on several growth opportunities.

"This is testament to the quality of the portfolio we have established and the significant potential it holds for continued capital appreciation."

Birrell said that with a "strong, well-funded" balance sheet and numerous growth opportunities under review, the company had a positive outlook for the months ahead.

"The private credit and direct lending markets continue to go from strength to strength and we have confidence that our diversified portfolio is well positioned for continued resilience.

"We look forward to updating the markets on our progress."

At 1335 GMT, shares in Duke Capital were up 3.76% at 30.35p.

Reporting by Josh White for Sharecast.com.