Duke Capital LimitedLSE: DUKE

FY25 Financial Results Presentation (FY25 Results Presentation)

Jun 26, 2025 at 11:27 AM UTC · Issued by Duke Capital Limited

Watch Duke Capital explain itDUKE CAPITAL LIMITED (DUKE) — Audited results for the 12 months ended 31 March 2026 · Replay · Jun 22

FY25 Results Presentation

June 2025

AIM: Duke

INTRODUCTION

FY25 Results reflect disciplined execution while building future value

Leading Hybrid Credit Provider Duke's product combines the best of private credit and private equity

Executing In Economic Headwinds Duke's FY25 financial performance demonstrates value of our hybrid credit model in times of economic stress

Recurring Cash Revenue Up in FY25 The 6% increase in recurring cash revenue underpins the dividend

Building Future Value

FY25 saw Duke increase equity ownership in 6 partners and continue alignment with management groups

Covered Dividend @ 2.8p / share Current yield to investors continues to be a core investment pillar for Duke

Benefitting from Macro stability

As interest rates ease and growth returns, Duke shareholders and partners benefit in multiple ways

INVESTMENT CASE SUMMARY 3

INTRODUCTION TO DUKE CAPITAL

Duke's capital appeals to business owners who need capital but want to retain control

Hybrid capital combines the best features of private credit and private equity

PRIVATE CREDIT

PRIVATE EQUITY

DUKE CAPITAL

Senior, mezzanine or junior 5-year term, typically bullet Floating rate: % over SONIA Light touch due diligence Fee-based, loss ratio model

vs Senior secured loan

vs 30-year amortisation

vs Fixed rate + rev. adjusted

vs Intensive due diligence

vs Exit premium + equity upside

Minority equity stakes vs Unitranche capital vs Inflation hedged return vs Board representation vs Exit in owners' control vs

Majority equity control

Preference and / or ordinary shares Return only realised on exit

Board control

Exit forced at end of fund life

INTRODUCTION 4

CLEAR INVESTMENT STRATEGY

Duke's funding solution is used by owner-operators to drive growth and increase shareholder value

Use of Proceeds

MANAGEMENT BUYOUTS

BUY & BUILD STRATEGIES

SHAREHOLDER RESTRUCTURINGS

DEBT REFINANCING

What Duke looks for

Business characteristics

Investment size of £5 - 30 million
Companies with EBITDA of £2 - 8 million and low maintenance
capex
Long-term partnership and alignment with business owners
We seek owners not wanting to give up control or existing management wanting to become owners through an MBO

Long-standing private, family / owner-operated businesses
History of organic revenue growth and profitability
Dominant position in its local market
Low levels of customer concentration
Environmentally and socially responsible

INTRODUCTION 5

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
12.0% fixed rate yield, with no refinancing risk
Principal paid throughout 30-year term
Company's current cash flows exceed interest payments, typically 2 times covered
To enhance returns and create alignment, Duke seeks equity when available
Equity is typically acquired at
minimal cost at transaction date
CORPORATE MORTGAGE
MINORITY EQUITY STAKES
VARIABLE PREFERENCE SHARES
EXIT PREMIUMS
1.5% - 2.0% variable preference
share
Annual adjustment to Duke's yield based on partners' change in revenue
The change in yield is capped at
+/-6% in currency terms
Inflation hedged: price inflation in portfolio results in higher revenue for Duke
Business owner maintains control of the timing of an exit
Fee due upon refinancing prior to
maturity in every case
Exit premiums of 15% - 30%

INTRODUCTION 6

TARGET MARKET VS. OTHER INSTITUTIONAL FORMS OF CAPITAL

Duke's point of exit / refinance

No investment

Duke's point of entry

The Lower Mid-Market comprises of companies with less access to institutional capital than other segments

Middle Market

Professional managers and institutional ownership
Private equity ownership sweet-spot
Many more options for capital
Refinancing risk diminished
Typically established operations with expansion internationally

Venture Capital

Visionary leadership
Focus on revenue growth not profits
No cashflow to support debt
Minimal operating history
Tech companies and/or scalable

business models

Lower Middle-Market

Entrepreneurial leadership / owners
Retaining control is important
Refinancing risk is top of mind
Distrustful of banks
Steady revenue growth, typically serving domestic markets

EBITDA range:

EV / EBITDA x:

EBITDA range:

£2 - 6 million

EV / EBITDA x:

4x - 6x

EBITDA range:

£10 - 100 million

EV / EBITDA x:

8x - 10x

MARKET 7

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 owner/managers
Capital Deployment (incl. post period): Over £31m invested in existing capital partners
- Acquired nine more companies into the portfolio
- Post-period continued execution - £5.3m into New Path Fire & Security and Tristone Healthcare while increasing equity stakes in both
  Equity Raise: Oversubscribed £23.5m raised in Nov 2024 for further dry powder to capitalize on opportunities
  Third Party Capital: on-going marketing, seeking capital that is on terms both accretive to shareholders
  and on terms consistent with Duke's hybrid capital product
- Financing of new partners into portfolio to be partly financed with third party capital, without the need for further equity raises

INTRODUCTION 8

FINANCIAL HIGHLIGHTS

21.8 24.3 25.8

14.9

FY22 FY23 FY24 FY25

6.0

3.5 0.1 0.8

FY22 FY23 FY24 FY25

30.3 26.6

18.4 21.9

FY22 FY23 FY24 FY25

21.8 24.3 25.8

14.9

FY22 FY23 FY24 FY25

6.0

3.5 0.1 0.8

FY22 FY23 FY24 FY25

30.3 26.6

18.4 21.9

FY22 FY23 FY24 FY25

Growth in recurring revenue, but no investment exits

4.85

3.80 3.13 3.48

FY22 FY23 FY24 FY25

2.8 2.8 2.8

2.3

FY22 FY23 FY24 FY25

4.85

3.80 3.13 3.48

FY22 FY23 FY24 FY25

Cash revenue refers to monthly distributions from capital partners, exit premiums and cash gains from the sale of equity investments, Recurring cash revenue excludes exit premiums and cash gains from the sale of equity investments Free cash flow is defined as net cash inflows from operations plus cash gains from the sale of equity investments less net transaction costs less interest paid on borrowings

Adjusted earnings excludes fair value movements, share-based payments and net transaction costs

FINANCE 10

£25.8m +6%

Recurring cash revenue

21.8

24.3

25.8

14.9

FY22

FY23

FY24

FY25

£0.8m -86%

Non-recurring cash revenue

6.0

3.5

0.1

0.8

FY22

FY23

FY24

FY25

£26.6m -12%

Total cash revenue

FY22

FY23

FY24

FY25

£12.6m -42%

Free Cash Flow

17.9

11.2

12.8

12.6

FY22

FY23

FY24

FY25

2.8 pence -%

Dividend per share

2.3

2.8

FY22

FY23

FY24

FY25

3.48 pence -23%

Adjusted earnings per share

3.80

4.85

3.13

3.48

FY22

FY23

FY24

FY25

OPERATING LEVERAGE

Long term decrease in operating leverage as recurring revenue continues to grow

Opex %

22%

21%

14%

11%

12%

Recurring cash revenue excludes exit premiums and cash gains from the sale of equity investments while cash operating costs excludes variable STIP payments

FINANCE 11

30%

24.3

25.8

25%

21.8

20%

14.9

15%

10.3

8.8

10%

2.3

1.9

2.1

2.3

3.0

3.1

FY20 FY21 FY22 FY23 FY24 FY25

Recurring cash revenue - £m (LHS)

Cash operating costs - £m (LHS)

Linear (Leverage Trendine (RHS))

BALANCE SHEET

Increased investment size reflects 'stay in for longer' philosophy

Investment Type	Cost	Fair Value	+/-
Hybrid Credit (£m)	225.5	225.7	0%
Term Loan (£m)	2.3	2.3	0%
Equity (£m)	6.4	15.8	148%
Total (£m)	234.2	243.8	4%

£19.8m of cash on the balance sheet; £29.8m of available liquidity
£90m drawn on the Fairfax credit line
NAV per share of 35.4p

FINANCE 12

Equity investment portfolio fair value (£m)

15.9

13.5

10.8

15.8

5 3.5

FY21 FY22 FY23 FY24 FY25

Average hybrid credit investment size (£m)

16.1

11.9

13.5

7.6

FY21

FY22

FY23

FY24

FY25

RECURRING CASH REVENUE

Annuity-like cash returns continue, despite lack of exits

12 80%

Cash revenue received to date as a % of invested capital

78%

100%

80%

8 53%

53%

46%

42%

48%

22%

54%

31% 38%

22% 17% 23%

60%

40%

20%

Total cash revenue received - £m (LHS) % of invested capital (RHS)

Over £1 billion of contractual revenue in current hybrid credit portfolio assuming all investments held to term
FINANCE 13

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 partner	Investment Date	Term Held (months)	Capital invested (£000)	Hybrid credit	Exit premium	Equity	Cash on cash return	Realised gross IRR
Temarca	Apr-17	47	12,934				0.98x	-1.1%
Berkley	Jun-17	46	1,140				1.56x	16.0%
Fairmed	Jun-21	38	8,591				1.59x	21.2%
Instor	Mar-23	3	7,309				1.29x	293%
Xtremepush	Feb-18	31	2,473			3%	1.45x1	22.0%
Welltel	Jun-17	42	13,454			5%	1.39x	28.2%
BHP	Aug-18	36	5,183			12.5%	1.74x	28.8%
Fabrikat	Feb-21	38	6,200			30%	2.11x1	32.4%

1 Cash on cash return excludes deferred equity obligations for Fabrikat and unrealised equity fair value for XtremePush

FINANCE 14

PORTFOLIO

July 2023

Fair value: US$13.1m MBO

Industrials

OUR PARTNERS

March 2024 Fair value: £14.9m

Buy & Build Specialist Care

November 2022 Fair value: £12.1m Buy & Build

Fire & Security

December 2021 Fair value: £22.9m Buy & Build

Specialist Care

December 2021 Fair value: US$24.0m

Debt Refinancing

Industrials

BPVA

February 2019 Fair value: £20.6m MBI

Leisure

September 2018 Fair value: £20.6m Buy & Build Business Services

August 2018 Fair value: £10.5m

Growth Capital Healthcare

March 2018 Fair value: £10.6m

Equity Buyout Industrials

October 2017 Fair value: £15.1m

Buy & Build Business Services

August 2021 Fair value: CA$27.3m

Buy & Build Industrials

July 2021

Fair value: £26.8m Buy & Build

I.T Services

Step Investments

August 2018

April 2018

Fair value: £12.8m

Fair value: £15.5m

Growth Capital

Buy & Build

Business Services

Industrials

Note: Data as at 31 March 2025 and does not include follow-on investments made in FY26. Reflects hybrid credit investments only

PORTFOLIO 16

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

HYBRID CREDIT RETURNS

Credit product provides ongoing cash returns with potential upside from growing equity portfolio

Capital partner	Investment Date	Capital invested	Equity %	Cash returned to date	Cash return as % of capital invested	Unrealised fair value1	Indicative cash on cash return - current	Indicative cash on cash return - with premium
Lynx	Oct-17	15,000	-	12,075	80%	15,105	1.8x	2.0x
Trimite	Mar-18	13,250	100%	4,974	38%	10,631	1.2x	1.5x
UGG	Apr-18	18,223	74%	9,705	53%	15,451	1.4x	1.7x
Step	Jun-18	11,503	-	6,167	54%	12,819	1.7x	1.8x
InterHealth	Aug-18	10,000	-	7,834	78%	10,479	1.8x	1.8x
BPVA	Sep-18	20,435	30%	9,414	46%	27,675	1.8x	2.0x
Miriad	Feb-19	23,000	50%	12,268	53%	20,598	1.4x	1.7x
Creō	Jul-21	19,265	100%	5,877	31%	16,943	1.2x	1.5x
Intec	Jul-21	31,500	100%	7,038	22%	26,755	1.1x	1.5x
Atlas	Dec-21	15,854	-	7,597	48%	18,600	1.7x	1.7x
Tristone	Dec-21	20,020	21%	8,393	42%	25,623	1.7x	1.8x
New Path	Nov-22	12,080	15%	2,653	22%	13,676	1.4x	1.6x
Glasshouse	Jul-23	9,028	10%	2,102	23%	11,515	1.5x	1.7x
Integrum	Mar-24	14,500	50%	2,425	17%	16,336	1.3x	1.5x
Total		233,659		98,522	42%	242,206	1.4x	1.7x

All data as at 31 March 2025. Excludes equity investment in XtremePush

1 Unrealised fair value includes the fair value of the hybrid credit and equity investments

PORTFOLIO 18

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%

ownership

10.95%

ownership

9.12%

ownership

9.07%

ownership

5.19%

ownership

Directors,

Management, Insiders

4.38%

ownership

4.37%

ownership

4.31%

ownership

3.00%

ownership

2.82%

ownership

Fairfax Financial Holdings Limited is Duke's £100m debt provider and strategic investor

Fairfax headquartered in Toronto has over $90bn of assets is primarily engaged in property and casualty

insurance and reinsurance and the associated investment management.

Shareholding as at 31 March 2025

SHAREHOLDERS 19

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 starting at initial investment
Seek continuity of owners and/or managers to reduce risk
£225m+ currently invested in longstanding profitable businesses
Visibility of £1.0bn of contractual revenues if current portfolio held to maturity

Obligation for monthly cash payments starting at investment date
Duke has paid dividends for 32 consecutive quarters
21.4p per share of dividends paid to
Duke's shareholders (£65.4m1)
Current annualised divided

yield of 9.7%2

Exit premiums are structured in every transaction, as a deterrent for refinancing
Equity stakes acquired either upon investment or later, always keeping alignment with owner/operators
Currently 11 equity positions worth
£16m
Unrealised exit premiums worth

£46m+

1 Total dividend paid includes 0.70 pence / share, dividend announced on 19 June and due to be paid on 14 July 2025

2 Yield based off annualised dividend of 0.70 pence paid on 14 April 2025 and share price as at 23 June 2025 of 29.00 pence

BENEFITS TO INVESTORS 20

CONCLUSION & OUTLOOK

FY25 Results reflect disciplined execution while building future value

Leading Hybrid Credit Provider Duke's product combines the best of private credit and private equity

Building Future Value

FY25 saw Duke increase equity ownership in 6 partners and continue alignment with management groups

Recurring Cash Revenue Up in FY25 The 6% increase in recurring cash revenue underpins the dividend

Cautious Optimism

With increasing economic stability &

interest rates decreasing, Duke's portfolio co's, and its shareholders will benefit

Covered Dividend @ 2.8p / share Current yield to investors continues to be a core investment pillar for Duke

Self-Sustainable Model

Recycling capital from exits, building equity stakes and pursuing third party capital is intended to build NAV /share over time

INVESTMENT CASE SUMMARY 21

APPENDICES

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)	(2,487)
Payments for hybrid credit participation fees	(87)	(130)	(112)	(115)
Tax received / (paid)	(781)	(673)	(1,346)	(2,055)
Net cash inflow from operating activities	21,523	23,097	17,115	11,167
Hybrid credit investments advanced	(24,500)	(42,012)	(23,809)	(74,586)
Hybrid credit investments repaid	3,987	17,636	-	2,938
Loan investments advanced	(2,286)	(750)	(2,500)	(3,192)
Loan investments repaid	-	-	2,000	3,949
Equity investments advanced	(370)	(3,799)	(500)	(530)
Equity investments repaid	-	2,326	-	2,883
Equity dividends received	21	48	3	-
Receipt of deferred consideration	742	1,512	-	7,679
Investments costs paid	(462)	(1,344)	(357)	(972)
Net cash outflow from investing activities	(22,868)	(26,383)	(25,163)	(61,831)
Proceeds from share issue	23,500	-	20,000	35,000
Share issue costs	(1,394)	-	(1,115)	(1,936)
Dividends paid	(12,249)	(11,524)	(10,979)	(7,270)
Proceeds from loans	17,000	15,000	71,250	38,200
Loan repaid	-	-	(61,450)	(7,500)
Interest paid	(8,520)	(6,222)	(3,976)	(1,649)
Other finance costs paid	(4)	-	(2,426)	(181)
Net cash inflow from financing activities	18,333	(2,746)	11,304	54,664

Net change in cash and cash equivalents	16,988	(6,032)	3,256	4,000

Cash and cash equivalents at beginning of year	2,896	8,939	5,707	1,766
Effect of foreign exchange on cash	(117)	(11)	(24)	(59)

Cash and cash equivalents at the end of year	19,767	8,939	5,707	1,766

APPENDICES 23

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	30,993	28,791

Investment Costs
Transaction costs	(171)	(475)	(66)	(631)
Due diligence costs	(87)	(645)	(620)	(1,113)
Operating Costs
Administration and Personnel	(3,509)	(3,072)	(2,627)	(2,060)
Legal and professional fees	(449)	(533)	(456)	(405)
Other operating costs	(381)	(370)	(223)	(151)
Expected credit gains / (losses)	78	14	(20)	(72)
Share-based payments	(409)	(938)	(969)	(930)

Operating profit	10,291	19,568	26,012	23,429

Net foreign currency movement	(99)	(22)	66	(60)
Other finance costs	(9,454)	(7,255)	(5,644)	(1,996)

Profit for the period before tax	738	12,291	20,434	21,373

Taxation expense	1,267	(683)	(842)	(982)
Total comprehensive income	2,005	11,608	19,592	20,391

APPENDICES 24

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 receivables	-	1,574	-	-
Deferred tax asset	2,877	408	200	156
Total Non-Current Assets	211,314	201,060	177,124	153,999
Hybrid credit finance investments	35,584	33,359	32,793	20,831
Loan investments	-	-	-	1,000
Trade and other receivables	1,936	843	2,290	2,194
Cash and cash equivalents	19,767	2,896	8,939	5,707
Current tax asset	-	155	373	-
Total Current Assets	57,287	37,253	44,395	29,732
Hybrid credit debt liabilities	140	170	154	160
Trade and other payables	444	461	433	423
Borrowings	723	632	441	362
Current tax liability	266	-	-	88
Total Current liabilities	1,573	1,263	1,028	1,033
Hybrid credit debt liabilities	898	934	988	951
Trade and other payables	967	1,063	1,314	1,067
Borrowings	87,611	69,772	53,930	47,740
Total Non-current Liabilities	89,476	71,769	56,232	49,758

Net Assets	177,552	165,281	164,529	132,941

Shares issued	195,045	172,939	172,939	153,974
Share based payment reserve	4,794	4,385	3,447	2,478
Warrant reserve	3,036	3,036	3,036	265
Retained losses	(25,323)	(15,079)	(15,163)	(23,776)
Total Equity	177,553	165,281	164,529	132,941

APPENDICES 25

OUR TEAM

An experienced management team

NEIL JOHNSON - CEO

30+ years of experience in mid-market companies
Head of Corporate Finance (Europe) and on Global Executive Committee of Canaccord Genuity
Has raised over £3 billion of capital across private and public markets
Founder of Duke Capital
AJAY SHIVDASANI - PRINCIPAL, INVESTMENTS
4 years of private-equity LBO transaction experience and deal origination at DW Healthcare Partners and 4 years of global management consulting experience at Oliver Wyman
MBA from INSEAD University
TOMMY STAMADIANOS -
ASSOCIATE, INVESTMENTS
4 years of LBO and growth equity experience focused on North America and Western Europe at AIMCo and Canadian Business Growth Fund
Holds a BCom from the University of Toronto

CHARLIE CANNON-

BROOKES - CIO

London-based Chief Investment Officer
20 years+ of fund management
Has sat on the boards of several funds, trusts and other publicly traded investment companies
Co-founder of Duke Capital
STEVEN RUSSO - PRINCIPAL, INVESTMENTS
12 years of experience in mezzanine debt and growth equity capital transactions.
J.D./MBA Degree from
Queen's University (2011)
KORAY KOSANOGLU -ASSOCIATE, INVESTMENTS
2 years at Deutsche Bank in London in the Consumer & Retail team, on a range of M&A and Financing projects
Holds a BSc in Economics from UCL
HUGO EVANS - CFO
Extensive experience in senior finance roles within financial services
12 years of UK plc reporting experience
Chartered Accountant (Grant Thornton)
MAGDA TARNOWSKA -
EXECUTIVE ASSISTANT
5 years of experience as EA supporting the CEO and Duke team
2 years as EA at Captor Capital, supporting the CEO and Board of Directors
JOEL ANDERS -
ASSOCIATE, INVESTMENTS
2 years Blazehill Capital focusing on investment opportunities as well as managing portfolio companies across a wide range of sectors
Holds a BSc in Economics from Bristol
ALEX HIBBARD - PRINCIPAL, INVESTMENTS
- 10 years of private equity experience, focused on new investments and managing portfolio companies
- Chartered Financial Analyst
  MARCUS OLSBERG -
  ORIGINATION
- 4 years at MUFG Bank where he worked in the Leveraged Finance and Credit Analysis divisions with a focus on the Aviation Sector
- BA from Durham University

TEAM 26

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