Duke Capital Limited · LSE:DUKE
Duke Capital — FY2025 Earnings Presentation
26 slides from Duke Capital's earnings presentation, June 2025
Slide 1: FY25 Results Presentation
FY25 Results Presentation June 2025 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: FY25 Results reflect disciplined execution while building future value
INTRODUCTION FY25 Results reflect disciplined execution while building future value Executing In Economic Headwinds Leading Hybrid Credit Provider Duke’s FY25 financial performance Duke’s product combines the best of demonstrates value of our hybrid credit private credit and private equity model in
Slide 4: 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 5: 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 6: 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 7: Target Market vs. Other Institutional Forms of Capital
TARGET MARKET VS. OTHER INSTITUTIONAL FORMS OF CAPITAL The Lower Mid-Market comprises of 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 leadersh
Slide 8: FY25 Operational Highlights
FY25 OPERATIONAL HIGHLIGHTS Building Long-Term Value Across the Portfolio First full year of operations as Duke Capital: investment team with more tools to create shareholder value • Equity Upsizing Opportunities: Increased stakes in 6 existing partners, while keeping or enhancing the alignment with
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS Growth in recurring revenue, but no investment exits £25.8m +6% £0.8m -86% £26.6m -12% Recurring cash revenue Non-recurring cash revenue Total cash revenue 24.3 25.8 25.8 21.8 21.8 24.3 6.0 6.0 30.3 30.3 26.6 26.6 14.9 0.8 21.9 21.9 14.9 3.5 3.5 0.1 0.1 0.8 18.4 18.4 FY22 FY22 F
Slide 11: Operating Leverage
OPERATING LEVERAGE Long term decrease in operating leverage as recurring revenue continues to grow Opex % 22% 21% 14% 11% 12% 12% 30 30% 25.8 24.3 25 25% 21.8 20 20% 14.9 15 15% 10.3 10 8.8 10% 5 3.0 3.1 5% 2.3 1.9 2.1 2.3 0 0% FY20 FY21 FY22 FY23 FY24 FY25 Recurring cash revenue - £m (LHS) Cash ope
Slide 12: Balance Sheet
BALANCE SHEET Increased investment size reflects ‘stay in for longer’ philosophy Investment Type Cost Fair Value +/- • £19.8m of cash on the balance sheet; £29.8m Hybrid Credit (£m) 225.5 225.7 0% of available liquidity Term Loan (£m) 2.3 2.3 0% • £90m drawn on the Fairfax credit line Equity (£m) 6.
Slide 13: Recurring Cash Revenue
RECURRING CASH REVENUE Annuity-like cash returns continue, despite lack of exits Cash revenue received to date as a % of invested capital 14 100% 80% 12 78% 80% 10 53% 53% 48% 54% 60% 8 46% 42% 38% 6 31% 40% 22% 22% 23% 4 17% 20% 2 0 0% Total cash revenue received - £m (LHS) % of invested capital (R
Slide 14: Upside from Exits
UPSIDE FROM EXITS Realized exits demonstrate additional value can be extracted with equity stakes in partners • Over £46m of contractual exit premiums not included in hybrid credit fair value • Increased in equity stakes in 6 partners during FY25 and two further additions post year end Capital Cash
Slide 15: Portfolio
PORTFOLIO
Slide 16: Our Partners
OUR PARTNERS March 2024 July 2023 November 2022 December 2021 December 2021 Fair value: £14.9m Fair value: US$13.1m Fair value: £12.1m Fair value: £22.9m Fair value: US$24.0m Buy & Build MBO Buy & Build Buy & Build Debt Refinancing Specialist Care Industrials Fire & Security Specialist Care Industri
Slide 17: Our Partners
OUR PARTNERS Duke’s exposure is diversified across 14 capital partners with 75 underlying operating companies Step Investments Bay Broadcasting Limited BPVA Balgowan House Mulberry House Saltwood Care Centre Hythe View Betsy Clara House Southdowns PORTFOLIO 17
Slide 18: 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 19: Duke's Investors: Top Global Funds with Significant Public Ownership
DUKE’S INVESTORS: TOP GLOBAL FUNDS WITH SIGNIFICANT PUBLIC OWNERSHIP Loyal base of blue-chip institutional investors – strong retail following - significant management ownership 14.52% 10.95% 9.12% 9.07% 5.19% ownership ownership ownership ownership ownership Directors, Management, Insiders 4.38% 4.
Slide 20: 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 amortization of capital starti
Slide 21: Conclusion & Outlook
CONCLUSION & OUTLOOK FY25 Results reflect disciplined execution while building future value Building Future Value Leading Hybrid Credit Provider FY25 saw Duke increase equity ownership Duke’s product combines the best of in 6 partners and continue alignment with private credit and private equity man
Slide 22: Appendices
APPENDICES
Slide 23: Consolidated Statement of Cashflows
CONSOLIDATED STATEMENT OF CASHFLOWS £ in thousands FY2025 FY2024 FY2023 FY2022 Receipts from hybrid credit investments 25,000 27,267 21,634 14,701 Receipts of interest from loan investments 158 453 339 580 Other operating receipts 1,419 195 176 543 Operating expenses paid (4,186) (4,015) (3,306) (2,
Slide 24: Consolidated Statement of Income
CONSOLIDATED STATEMENT OF INCOME £ in thousands FY2025 FY2024 FY2023 FY2022 Income Hybrid credit investment income 19,168 23,014 28,266 18,037 Loan investment income 158 453 339 533 Equity investment income (5,849) 1,925 2,212 9,678 Other operating income 1,742 195 176 543 Total income 15,219 25,587
Slide 25: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION £ in thousands 31-Mar-25 31-Mar-24 31-Mar-23 31-Mar-22 Goodwill 203 203 203 203 Hybrid credit finance investments 190,100 177,589 158,540 139,648 Loan investments 2,322 5,382 4,652 3,172 Equity investments 15,812 15,904 13,529 10,820 Trade and other recei
Slide 26: 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 Investmen