Duke Capital (DUKE) Investor presentation summary

Financial performance and shareholder returns

• Achieved a 66% increase in quarterly recurring revenue, reaching a record £6.4m in Q2 FY25.

• Returned £33.3m to shareholders, with dividends per share raised 17% to 2.8p.

• Over £780m in contractual revenue due over the next 30 years, with £54.9m in dividends paid to date.

• Maintains a strong 8.5% annualized dividend yield and has paid dividends for 30 consecutive quarters.

• Free cash flow for interim FY25 was £5.86m, with gross investment deployments of £15.3m.

Investment strategy and portfolio

• Focuses on hybrid capital, combining private credit and private equity, appealing to owners seeking capital while retaining control.

• Invests in buy & build platforms, targeting companies with EBITDA of £2–8m and investment sizes of £5–30m.

• Portfolio diversified across 14 capital partners and 75 operating companies in the UK, Ireland, Canada, and the US.

• Seeks minority equity stakes, senior secured instruments, and variable preference shares to align interests and enhance returns.

• Rigorous origination process, reviewing 636 deals since Jan 2020 and investing in 10.

Fundraising and use of proceeds

• Launching a £15m+ institutional placing to fund bolt-on M&A for current portfolio platforms.

• Proceeds will be used to build EBITDA, increase equity stakes, and support third-party capital raises.

• Identified acquisition targets include BPVA, United Glass Group, and Tristone Healthcare.

• Aims to attract higher EBITDA multiples on exit and demonstrate shareholder support.