Duke Capital Limited (LON:DUKE), a leading provider of hybrid capital solutions for SME business owners in Europe and North America, has provided the following trading update for its first quarter of the financial year ending 30 June 2025, and to provide guidance on trading for its second quarter ending 30 September 2024.
Q1 FY25 Trading Update
· Recurring revenue for Q1 FY25 totalled £6.3 million, an increase of 5% over Q1 FY24 and a 9% increase over the previous quarter (Q4 FY24).
· Total cash revenue for the quarter was £6.8 million following the full exit of Fairmed Healthcare.
Q2 FY25 Trading Guidance
· Based on current trading, Duke expects to achieve recurring cash revenue of £6.4 million in Q2 FY25.
Overview of quarterly revenue growth:
| Recurring Cash Revenue* | Total Cash Revenue** | |
| Q2 FY24 | £6.2 million | £6.2 million |
| Q3 FY24 | £6.3 million | £6.3 million |
| Q4 FY24 | £5.8 million | £10.2 million |
| Q1 FY25 | £6.3 million | £6.8 million |
* Recurring cash revenue excludes exit premium receipts and cash gains from equity sales
** Total cash revenue is monthly cash distributions from Duke’s partners plus exit premium receipts and cash gains from equity sales
Operational Update
· In July, Duke completed a £2.9 million follow-on investment into Step investments (“Step”) to enable Step to acquire existing loan notes and increase its equity shareholding in Bay Broadcasting Limited.
· In August, Step then completed the sale of one of its other operating subsidiaries, City Education & Learning Group Limited, delivering them €5.2 million of cash on completion with a further €3m deferred consideration payment due after two years.
· In September, Duke invested a further £3.0 million of hybrid credit investment into United Glass Group (UGG) to facilitate the acquisition of Premier Double Glazed Units Limited, the first acquisition by UGG since Duke completed the secondary share purchase transaction earlier in 2024, which saw Duke’s equity stake in UGG increase to 73.8%.
Neil Johnson, CEO of Duke Capital, said:
“It is my pleasure to report another solid quarter of Duke’s operating performance for Q1 FY25 and to forecast a record recurring revenue performance for Q2 FY25. In August, we welcomed the Bank of England’s decision to deliver the first rate cut in over four years, since the UK economic backdrop certainly remains challenging relative to the United States.
“Despite the macro headwinds, it is pleasing to report that Duke’s diversified portfolio across the UK, Ireland, Canada and the United States continues to deliver reliable returns resulting in a strong dividend stream being paid out to its shareholders.”
