Duke Capital Limited · LSE:DUKE
Duke Capital — FY2026 Earnings Presentation
28 slides from Duke Capital's earnings presentation, June 2026
Slide 1: FY26 Results Presentation
FY26 Results Presentation June 2026 AIM: Duke
Slide 2: Disclaimer
DISCLAIMER These presentation slides and the accompanying verbal presentation (the objectives. Such statements are generally identifiable by the terminology used, The content of the Presentation Materials has not been approved by an authorised “Presentation Materials”), are confidential and have bee
Slide 3: Introduction to Duke Capital
INTRODUCTION TO DUKE CAPITAL Hybrid capital combines the best features of private credit and private equity Duke’s capital appeals to business owners who need capital but want to retain control PRIVATE PRIVATE CREDIT EQUITY DUKE CAPITAL Senior, mezzanine or junior vs Senior secured loan Minority equ
Slide 4: Clear Investment Strategy
CLEAR INVESTMENT STRATEGY Duke’s funding solution is used by owner-operators to drive growth and increase shareholder value Use of Proceeds MANAGEMENT BUY & BUILD SHAREHOLDER DEBT REFINANCING BUYOUTS STRATEGIES RESTRUCTURINGS What Duke looks for Business characteristics • Investment size of £5 – 30
Slide 5: The Components of Duke's Product
THE COMPONENTS OF DUKE’S PRODUCT Parts contribute to an overall package that meets the goals of both Duke’s investors and business owners • Senior secured instrument • 1.5% - 2.0% variable preference • 12.0% fixed rate yield, with no share refinancing risk • Annual adjustment to Duke’s yield • Princ
Slide 6: Target Market vs. Other Institutional Forms of Capital
TARGET MARKET VS. OTHER INSTITUTIONAL FORMS OF CAPITAL The Lower Mid-Market comprises companies with less access to institutional capital than other segments No investment Duke’s point of entry Duke’s point of exit / refinance Venture Capital Lower Middle-Market Middle Market • Visionary leadership
Slide 7: Duke's Track Record Aligning with Exceptional Managers
DUKE’S TRACK RECORD ALIGNING WITH EXCEPTIONAL MANAGERS When Duke enables management teams to transition from operators to owners, shareholders get rewarded OWNERSHIP OPPORTUNITY “Only Duke Capital's offer allowed us to keep 70% of the business that we had spent years crafting as the senior Duke can
Slide 8: How Duke's Product Benefits Investors
HOW DUKE’S PRODUCT BENEFITS INVESTORS History of attractive risk-adjusted returns by adhering to 3 investment pillars Capital preservation Attractive dividend yield Upside from exits Senior secured capital Monthly cashflow stream Exit premiums and equity stakes • Light amortisation of capital starti
Slide 9: Key Messages & Financial Highlights
KEY MESSAGES & FINANCIAL HIGHLIGHTS
Slide 10: Key Messages
KEY MESSAGES Resilient FY26 delivery and disciplined capital deployment in a challenging macro backdrop Solid Financial Performance Resilience Through the Cycle A solid year delivering growth, with Demonstrated resilience through a recurring revenue, total cash revenue challenging operating environm
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS Continued growth in recurring revenue, but no investment exits CASH REVENUE Recurring cash revenue Non-recurring cash revenue Total cash revenue £27.1m ▲ 5% £1.5m ▲ 79% £28.6m ▲ 7% RETURNS & DISTRIBUTIONS Free cash flow Free cashflow per share Dividend per share £14.2m ▲ 13% 2.8
Slide 12: Operating Leverage
OPERATING LEVERAGE Steady growth in recurring revenue and cost control reduce operating leverage Opex % 22% 21% 14% 11% 12% 12% 11% 30 27.1 25.8 24.3 25 21.8 20 14.9 15 10.3 10 8.8 5 3.0 3.1 3.1 2.3 1.9 2.1 2.3 0 FY20 FY21 FY22 FY23 FY24 FY25 FY26 Recurring cash revenue - £m Cash operating costs - £
Slide 13: Recurring Cash Revenue
RECURRING CASH REVENUE Annuity-like cash returns continue Cash revenue received to date as a % of invested capital 16 94% 100% 55% 14 60% 46% 98% 62% 80% 12 65% 54% 10 60% 24% 45% 8 36% 40% 6 24% 30% 42% 4 20% 2 0 0% Total cash revenue received - £m (LHS) % of invested capital (RHS) • £125+ million
Slide 14: Balance Sheet
BALANCE SHEET A resilient balance sheet, with capital actively deployed to drive future returns Investment Type Cost Fair Value +/- £8.3m 34.8p Hybrid Credit (£m) 248.2 248.8 0.2% Cash NAV per share Term Loan (£m) 1.0 1.0 - Equity (£m) 7.1 14.1 98% £100m £263.9m Total (£m) 256.3 263.9 3% Gross debt
Slide 15: Portfolio & Outlook
PORTFOLIO & OUTLOOK
Slide 16: FY26 Operational Highlights and Outlook
FY26 OPERATIONAL HIGHLIGHTS AND OUTLOOK Investment Thesis – Capital Preservation, Yield through Dividends and Upside from Exits • Recurring Cash Flows increased while building value within the portfolio - Deployed over £21 million into existing capital partners - Acquired an additional five business
Slide 17: Our Partners
OUR PARTNERS March 2024 July 2023 November 2022 December 2021 December 2021 Fair value: £21.3m Fair value: US$13.1m Fair value: £17.3m Fair value: £22.0m Fair value: US$24.0m Buy & Build MBO Buy & Build Buy & Build Debt Refinancing Specialist Care Industrials Fire & Security Specialist Care Industri
Slide 18: Our Partners
OUR PARTNERS Duke’s exposure is diversified across 14 capital partners with 78 underlying operating companies BPVA Step Investments SECTORS Industrials Balgowan House Hythe View Business Services Mulberry House Cavell House Saltwood Care Centre IT Services Betsy Clara House Specialist Care Swanborou
Slide 19: Hybrid Credit Returns
HYBRID CREDIT RETURNS Credit product provides ongoing cash returns with potential upside from growing equity portfolio Cash return as Indicative cash Indicative cash Investment Capital Cash returned % of capital Unrealised on cash return on cash return Capital partner Date invested Equity % to date
Slide 20: Playbook for Underperforming Partners
PLAYBOOK FOR UNDERPERFORMING PARTNERS Working constructively with management teams to protect capital and position for recovery 1 STRUCTURAL PROTECTION 2 OPERATIONAL TRANSFORMATION 3 REALIGNMENT FOR GROWTH Built-in safeguards that stabilise, not Hands-on expertise to restore A clear path to restored
Slide 21: Upside from Exits
UPSIDE FROM EXITS Realised exits demonstrate additional value can be extracted with equity stakes in partners • Over £40m of contractual exit premiums not included in hybrid credit fair value Capital Cash on Investment Term Held invested Hybrid Exit cash Capital partner Date (months) (£000) credit p
Slide 22: Conclusion & Outlook
CONCLUSION & OUTLOOK Income and resilience – delivering for shareholders in FY26, but cautious outlook Shareholder Value at the Core Cautious & Disciplined Positioning A consistent track record of returns, built Planning for a prolonged period of on capital preservation and disciplined uncertainty,
Slide 23: Appendices
APPENDICES
Slide 24: Consolidated Statement of Cashflows
CONSOLIDATED STATEMENT OF CASHFLOWS £ in thousands FY2026 FY2025 FY2024 FY2023 Receipts from hybrid credit investments 25,197 25,000 27,267 21,634 Receipts of interest from loan investments 53 158 453 339 Other operating receipts 1,831 1,419 195 176 Operating expenses paid (4,359) (4,186) (4,015) (3
Slide 25: Consolidated Statement of Income
CONSOLIDATED STATEMENT OF INCOME £ in thousands FY2026 FY2025 FY2024 FY2023 Income Hybrid credit investment income 28,155 19,168 23,014 28,266 Loan investment income 53 158 453 339 Equity investment income (4,412) (5,849) 1,925 2,212 Other operating income 2,261 1,742 195 176 Total income 26,057 15,
Slide 26: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION £ in thousands 31-Mar-26 31-Mar-25 31-Mar-24 31-Mar-23 Goodwill 203 203 203 203 Hybrid credit finance investments 178,795 190,100 177,589 158,540 Term credit investments - 2,322 5,382 4,652 Equity investments 14,065 15,812 15,904 13,529 Trade and other re
Slide 27: Duke's Investors
DUKE’S INVESTORS Strong retail following with trading liquidity 15.9% 13.5% 9.0% 8.7% 4.38% ownership ownership ownership ownership ownership Directors, Management, Insiders 5.1% 4.6% 3.5% 3.2% 2.7% ownership ownership ownership ownership ownership Fairfax Financial Holdings Limited is Duke’s £100m
Slide 28: Our Team
OUR TEAM An experienced management team NEIL JOHNSON – CEO CHARLIE CANNON HUGO EVANS – CFO ALEX HIBBARD – PRINCIPAL, BROOKES – CIO INVESTMENTS • Extensive experience in • 30+ years of experience in • London-based Chief • 10 years of private equity senior finance roles mid-market companies Investment