Duke Capital (DUKE) H1 2026 earnings summary

Executive summary

• Recurring cash revenue for Interim FY26 rose 3% year-over-year to £13.2 million, demonstrating resilience of the hybrid credit model during economic headwinds.

• Free cash flow remained stable at £5.9 million, matching the prior year period.

• Portfolio remains diversified across 14 capital partners and 77 operating companies, focusing on long-standing, profitable businesses.

• Over £15 million was deployed into existing capital partners, supporting strategic acquisitions and organic growth.

• Cash operating expenses fell 21% year-over-year to £2.1 million.

Financial highlights

• Operating profit for the period was £9.6 million, up from £7.0 million in the prior year period.

• Profit before tax reached £5.1 million, compared to £2.2 million a year earlier.

• Recurring cash revenue reached £13.2 million, up 3% year-over-year; total cash revenue also £13.2 million, down 3% due to no investment exits.

• Free cash flow was £5.9 million, in line with the prior year.

• Basic and diluted EPS were 0.95 pence, up from 0.47 pence year-over-year.

Outlook and guidance

• Recurring cash revenue for Q3 FY26 is expected at £6.8 million, a 5% year-over-year increase.

• Easing interest rates and macroeconomic stability expected to benefit shareholders and partners.

• Management anticipates that a reduction in UK interest rates over the next 12–18 months would lower borrowing costs and enhance yield attractiveness.

• Continued focus on recycling capital from exits, building equity stakes, and pursuing third-party capital to grow NAV per share.

• Dividend yield expected to remain a core pillar, supported by recurring cash flows.