Interim Financial Results

About this update from Duke Capital Limited

4 December 2025   Duke Capital Limited ("Duke Capital", "Duke" or the "Company")   Interim Financial Results for the six months to 30 September 2025   Resilient performance with platform for growth   Duke Capital Limited (AIM: DUKE), a leading provider of hybrid capital solutions for SME business owners in Europe and North America, is pleased to announce its interim results for the six months ended 30 September 2025 ("Interim 2026").   Financial and Operational Highlights:   ·           Recurring cash revenue* totalled £13.2 million, an increase of 3% on Interim 2025 (£12.7 million) ·          Total cash revenue also £13.2 million, down 3% from the prior period (Interim 2025: £13.5 million) due to the absence of investment exits ·          Free cash flow** of £5.9 million, in line with Interim 2025 (£5.9 million), despite no investment exits in the period ·          Continued disciplined investment strategy with over £15 million of deployments made into existing Capital Partners during the period ·           Cash operating expenses of £2.1 million, down 21% from Interim 2025 (£2.6 million) ·           Cash dividends of 1.40 pence per share paid during the period (Interim 2025: 1.40 pence per share) ·           Cumulative dividends of 21.40 pence per share paid over 33 consecutive quarters since inception   Post-Period End Highlights:   ·         £6.8 million of recurring cash revenue expected in Q3 FY26, representing a 5% year-on-year increase (Q3 FY25: £6.5 million) ·         In October 2025, invested £3.7 million into Step Investments Limited to acquire the Irish commercial radio station Galway Bay FM   * 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   Nigel Birrell, Chairman of Duke Capital, said: "Our resilient performance over the first half once again highlights the strength and reliability of Duke's model. In a period where many SMEs continue to face challenging conditions, we've remained focused on supporting our partners' growth ambitions and maintaining stable returns for shareholders.   "Looking ahead, any easing of borrowing costs would be beneficial for Duke, lowering our own financing costs while improving our relative attractiveness to income-focused shareholders thanks to our strong yield profile. With a robust balance sheet and disciplined investment approach, Duke Capital is well placed to build on its strong foundations."   For further information, please visit https://dukecapital.com/ or contact:   Duke Capital Limited Neil Johnson / Charles Cannon Brookes / Hugo Evans +44 (0) 1481 231 816 Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker) Stephen Keys / Callum Davidson / Michael Johnson   +44 (0) 207 220 0500   Canaccord Genuity Limited (Joint Broker)   Adam James / Harry Rees +44 (0) 207 523 8000 SEC Newgate (Financial Communications) Robin Tozer / Alice Cho / Gwen Samuel +44 (0) 20 3757 6882 [email protected]   Duke Capital Portfolio   A full list of Duke's current partners is included for reference on the Partners page of the Company's website: www.dukecapital.com/partners .   About Duke Capital   Duke is a leading provider of hybrid capital solutions for SME business owners in Europe and North America, combining the best features of both equity and debt.   Since 2017, Duke has provided unique long-term financing which eliminates re-financing risk and necessity for a short-term exit by providing a unique 'corporate mortgage' while also aligning its returns to grow with the success of the business.   Duke is focused on generating attractive risk-adjusted returns for shareholders and has a track record of achieving this across market cycles. It's three investment pillars are capital preservation, attractive dividend yield, and to provide upside upon exits.   Duke is listed on the AIM market under the ticker DUKE and is headquartered in Guernsey.     CHAIRMAN'S REPORT   Dear Shareholder,   I am pleased to report that during the first half of the financial year, Duke Capital has delivered another period of solid performance, reflecting the strength of our model and the quality of our portfolio. The Group continued to generate strong recurring cash revenue and deploy capital prudently to support our long-term partners in achieving their growth objectives.   During the period, we deployed over £15 million across six existing capital partners, to enable our partners to pursue strategic acquisitions and organic expansion. The largest of these was a £6.0 million investment into Integrum Group Holdings Limited, facilitating the acquisition of Swanborough House, a long-standing UK freehold care home. All these deployments have contributed to the continued maturity and cash generation of the portfolio, reinforcing Duke's capacity to deliver sustainable growth and shareholder returns.   Since the period end, the Company has also announced a follow-on investment of £3.7 million into Step Investments Limited. These funds allowed Step to acquire the Irish commercial radio station Galway Bay FM, further demonstrating Duke's disciplined approach of providing its existing partners with capital to acquire well-established, cash-generative businesses   Market Environment and Outlook   The steady growth in our investment portfolio has been delivered against what must be viewed as a tough SME market backdrop, particularly in the UK economy. Inflationary pressures in the UK have remained stubbornly high, resulting in the UK having higher interest rates and borrowing costs compared to other wealthy OECD countries. Furthermore, persistently weak macroeconomic data releases have led to a challenging market backdrop with credit conditions tightening and consumer discretionary spend either being curtailed or delayed.   Similarly, improving market conditions are a prerequisite for making headway with potential third party capital partners who are aligned with our long-term vision. Our efforts continue to have sustainable growth both organically inside the portfolio and through new third party capital. However, growth must serve long-term shareholder value by being on accretive terms - not growth for its own sake.   Despite these current market headwinds, market consensus, especially following the recent UK Budget,  does point towards a gradual reduction in interest rates over the next 12 to 18 months to put the UK economy more in line with its OECD peers. Any such movement would be beneficial to Duke, lowering its own borrowing costs while improving the Company's relative attractiveness to income-focused investors given its strong yield profile.   While investor sentiment across UK small-cap equities remains cautious, Duke's differentiated offering; providing long-term, secured debt capital to profitable private businesses in the UK, Ireland and North America, continues to demonstrate resilience and relevance. The Group's diversified portfolio, recurring cash revenue base and low central overhead underpin a robust balance sheet and high visibility of future cash generation and dividends.   Looking ahead, Duke Capital remains focused on new capital sources while continuing disciplined capital allocation through the continued support of its portfolio companies buy-and-build strategies. The Board remains confident in the Company's ability to deliver attractive returns and long-term value to shareholders.     Nigel Birrell Chairman     CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS   Note Period to Year to Period to 30-Sep-25 31-Mar-25 30-Sep-24 (unaudited) (audited) (unaudited) £000 £000 £000 Cash flows from operating activities Receipts from hybrid credit investments 6 12,244 25,000 12,775 Receipts of interest from term credit investments 7 - 158 117 Other operating receipts 906 1,419 652 Operating expenses paid (2,069) (4,186) (2,614) Payments for hybrid credit participation fees 9 (66) (87) (46) Tax paid (585) (781) (607) Net cash inflow from operating activities 10,430 21,523 10,277 Cash flows from investing activities Hybrid credit investments advanced 6 (13,870) (24,500) (15,322) Hybrid credit investments repaid 6 -  3,987 3,987 Term credit investments advanced 7 - (2,286) - Equity investments purchased 8 (1,034) (370) - Equity dividends received 8 - 21 21 Receipt of deferred consideration 10 -  742 742 Investments costs paid (319) (462) (273) Net cash outflow from investing activities (15,223) (22,868) (10,845) Cash flows from financing activities Proceeds from share issue 14 - 23,500 - Share issue costs 14 - (1,394) - Dividends paid 17 (7,030) (12,249) (5,817) Proceeds from loans 12 - 17,000 17,000 Interest paid 12 (4,206) (8,520) (4,162) Other finance costs paid - (4) (4) Net cash (outflow) / inflow financing activities (11,236) 18,333 7,017 Net change in cash and cash equivalents (16,029) 16,988 6,449 Cash and cash equivalents at beginning of period / year 19,767 2,896 2,896 Effect of foreign exchange on cash 11 (117) (164) Cash and cash equivalents at the end of period / year 3,749 19,767 9,181     CONDENSED CONSOLIDATED STATEMENT OF INCOME   Period to Year to Period to 30-Sep-25 31-Mar-25 30-Sep-24 Note (unaudited) (audited) (unaudited) £000 £000 £000 Income Hybrid credit investment income 6 13,704 19,168 8,512 Term credit investment income 7 -  158  117 Equity investment income 8 (2,579) (5,849)  990 Other operating income  906  1,742  652 Total Income 12,031 15,219 10,271 Investment costs Transaction costs (38) (114) (115) Investment costs (68) (57) - Due diligence costs 30 (87)  36 Total investment costs (76) (258) (79) Operating costs Administration and personnel (1,734) (3,509) (2,286) Legal and professional (205) (449) (258) Other operating costs (127) (381) (216) Expected credit losses 7 - 78  - Share-based payments 15 (264) (409) (427) Total operating costs (2,330) (4,670) (3,187) Operating profit 9,625 10,291 7,005 Net foreign currency movement 12 (99) (163) Finance costs 3 (4,568) (9,454) (4,689) Profit for the period before tax  5,069  738 2,153 Taxation (expense) / credit 4 (319)  1,267 (181) Total comprehensive income for the period  4,750  2,005 1,972 Basic earnings per share (pence) 5 0.95 0.45 0.47 Diluted earnings per share (pence) 5 0.95 0.45 0.47     All income is attributable to the holders of the Ordinary Shares of the Company.   CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION   30-Sep-25 31-Mar-25 30-Sep-24 Note (unaudited) (audited) (unaudited) £000 £000 £000 Non-current assets Goodwill 13 203 203  203 Hybrid credit finance investments 6 201,224 190,100 185,871 Term credit investments 7  -  2,322  5,382 Equity investments 8 15,021 15,812  16,873 Trade and other receivables 10  -  -  1,574 Deferred tax 18  2,877  2,877  804 219,325 211,314 211,378 Current assets   Hybrid credit finance investments 6 39,117 35,584 32,195 Term credit investments 7  2,322  - - Trade and other receivables 10  1,911  1,936 31 Cash and cash equivalents  3,749 19,767  9,181 Current tax asset  -  -  186 47,099 57,287  41,593   Total Assets 266,424 268,601 252,300   Current liabilities   Hybrid credit debt liabilities 9 141 140  160 Trade and other payables 11 315 444  416 Borrowings 12 663 723  736 Current tax liability  - 266 -  1,119  1,573  1,312 Non-current liabilities   Hybrid credit debt liabilities 9 913 898  944 Trade and other payables 11 823 967  992 Borrowings 12 88,033 87,611  87,189 89,769 89,476  89,125   Net Assets 175,536 177,552 161,863   Equity   Shares issued 14 195,045 195,045 172,939 Share-based payment reserve 15 5,058 4,794  4,812 Warrant reserve 15 3,036 3,036  3,036 Retained losses 16 (27,603) (25,323) (18,924)   Total Equity 175,536 177,552 161,863     CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY   Share-based Shares payment Warrant Retained Total Note issued reserve reserve losses equity £000 £000 £000 £000 £000 At 1 April 2024 172,939 4,385 3,036 (15,079) 165,281 Total comprehensive income for the period  - - - 1,972 1,972 Transactions with owners Share-based payments 15 - 427 - - 427 Dividends 17 - - - (5,817) (5,817) Total transactions with owners - 427 - (5,817) (5,390) At 30 September 2024 172,939 4,812 3,036 (18,924) 161,863 Total comprehensive income for the period - - - 33 33 Transactions with owners Shares issued for cash 23,500 - - - 23,500 Share issuance costs (1,394) - - - (1,394) Share-based payments 15 - (18) - - (18) Dividends 17 - (6,432) (6,432) Total transactions with owners 22,106 (18) - (6,432) 15,656 At 31 March 2025 195,045 4,794 3,036 (25,323) 177,552     Total comprehensive income for the period - - - 4,750 4,750 Transactions with owners Share-based payments 15 - 264 - - 264 Dividends 17 - - - (7,030) (7,030) Total transactions with owners - 264 - (7,030) (6,766) At 30 September 2025 195,045 5,058 3,036 (27,603) 175,536   NOTES TO THE FINANCIAL STATEMENTS   1.       General Information   Duke Capital Limited ("Duke Capital" or the "Company") is a company limited by shares, incorporated in Guernsey under the Companies (Guernsey) Law, 2008. Its shares are traded on the AIM market of the London Stock Exchange.   Throughout the period, the "Group" comprised Duke Capital Limited and its wholly owned subsidiaries; Duke Capital UK Credit Limited, Duke Capital US Holdings, Inc and Duke Capital Employee Benefit Trust.   The Group's investing policy is to invest in a diversified portfolio of hybrid credit finance and related opportunities.   2.       Significant accounting policies   2.1     Basis of preparation   The interim Condensed Consolidated Financial Statements of the Group have been prepared in accordance with UK adopted international accounting standards, and applicable Guernsey law, and reflect the following policies, which have been adopted and applied consistently.   On 31 December 2020, IFRS as adopted by the European Union at that date was brought into the UK law and became UK-adopted international accounting standards, with future changes being subject to endorsement by the UK Endorsement Board. The Group transitioned to UK-adopted international accounting standards in its consolidated financial statements on 1 April 2021. There was no impact or changes in accounting from the transition.   These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34 Interim Financial Reporting, as adopted for use in the UK.   The accounting policies adopted in the preparation of the interim Condensed Consolidated Financial Statements are consistent with those followed in the preparation of the Consolidated Financial Statements of the Group for the year ended 31 March 2025.   No new or revised standards or interpretations that have become effective during the period ended 30 September 2025 have had a material effect on the financial statements of the Group.   The Directors consider that the Group has adequate financial resources to enable it to continue operations for a period of no less than 12 months from the date of approval of the financial statements. Accordingly, the Directors believe that it is appropriate to continue to adopt the going concern basis in preparing the financial statements.   2.2     Going concern   In assessing the going concern basis of accounting the Directors have had regard to the guidance issued by the Financial Reporting Council. After making enquiries and bearing in mind the nature of the Company's business and assets, the Directors consider that the Company has adequate resources to continue in operational existence for the foreseeable future.   The cash flow needs of the Group have been assessed taking account the need for further funding for any of the existing hybrid credit partners and the ongoing working capital needs of the business against the current cash and liquidity of the Group.   2.3     Material accounting policies   In the application of the Group's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.   The principal accounting policies applied in the presentation of the condensed consolidated interim financial statements of Duke Capital, including the critical accounting judgements made by the Directors and the key sources of estimation, are consistent with those followed in the preparation of the Group's Annual Report and consolidated financial statements for the year ended 31 March 2025 and have been consistently applied throughout the period ended 30 September 2025.   3.       Finance Costs   Period to   Year to Period to 30-Sep-25   31-Mar-25 30-Sep-24 (unaudited)   (audited) (unaudited)   £000 £000 £000   Interest payable on borrowings 4,146 8,611 4,268 Deferred finance costs released to P&L 422 843 421 4,568   9,454   4,689     4.       Income tax   The Company has been granted exemption from Guernsey taxation. The Company's subsidiary in the UK is subject to taxation in accordance with relevant tax legislation.   Period to   Year to Period to 30-Sep-25   31-Mar-25 30-Sep-24 (unaudited)   (audited) (unaudited)   £000 £000 £000 Current tax Income tax expense 319 1,362   577     Deferred tax     Increase in deferred tax assets - (2,629)   (396) - (2,629)   (396)     Income tax expense / (credit) 319 (1,267)   181   Factors affecting income tax expense for the period   Period to   Year to Period to 30-Sep-25   31-Mar-25 30-Sep-24 (unaudited)   (audited) (unaudited)   £000 £000 £000   Profit on ordinary activities before tax 5,069 738 2,153   Guernsey taxation at 0% (30 September 2024: 0%, 31 March 2025: 0%) - - - UK withholding tax at 20% (30 September 2024: 20%, 31 March 2025: 20%) - 1,042 - Overseas tax charges at rate higher than 0% 319 320 181 Deferred tax benefit - (2,629) - Income tax expense 319 (1,267) 181     5.       Earnings per share Period to   Year to Period to 30-Sep-25   31-Mar-25 30-Sep-24 (unaudited)   (audited) (unaudited)   £000 £000 £000   Total comprehensive income (£000) 4,750 2,005 1,972 Weighted average number of Ordinary Shares in issue, excluding treasury shares (000s) 502,602 443,930 415,865 Basic earnings per share (pence) 0.95 0.45 0.47   Period to   Year to Period to 30-Sep-25   31-Mar-25 30-Sep-24 (unaudited)   (audited) (unaudited)   £000 £000 £000   Total comprehensive income (£000) 4,750 2,005 1,972 Diluted weighted average number of Ordinary Shares in issue, excluding treasury shares (000s) 502,602 443,930 415,865 Diluted earnings per share (pence) 0.95 0.45 0.47     Basic earnings per share is calculated by dividing total comprehensive income for the period by the weighted average number of shares in issue throughout the period, excluding treasury shares (see Note 14). Diluted earnings per share represents the basic earnings per share adjusted for the effect of dilutive potential shares issuable on exercise of share options under the Company's share-based payment schemes, weighted for the relevant period.   All share options, warrants and Long-Term Incentive Plan awards in issue are not dilutive at the year-end as the exercise prices were above the average share price for the period. However, these could become dilutive in future periods.   Adjusted earnings per share   Adjusted earnings represent the Group's underlying performance from core activities. Adjusted earnings is the total comprehensive income adjusted for unrealised and non-core fair value movements, non-cash items and transaction-related costs, including due diligence fees, together with the tax effects thereon. Given the sensitivity of the inputs used to determine the fair value of its investments, the Group believes that adjusted earnings is a better reflection of its ongoing financial performance.   Valuation and other non-cash movements such as those outlined are not considered by management in assessing the level of profit and cash generation of the Group. Additionally, IFRS 9 requires transaction-related costs to be expensed immediately whilst the income benefit is over the life of the asset. As such, an adjusted earnings measure is used which reflects the underlying contribution from the Group's core activities during the year.   Period to   Year to Period to 30-Sep-25   31-Mar-25 30-Sep-24 (unaudited)   (audited) (unaudited)   £000 £000 £000   Total comprehensive income for the period 4,750 2,005 1,972   Unrealised fair value movements 1,874 14,070 3,293 Expected credit losses - (78) - Share-based payments 264 409 427 Net transaction costs 76 257 79 Tax effect of the adjustments above at country rate (162) (1,223) (319) Adjusted earnings 6,802 15,440 5,452   Period to   Year to Period to 30-Sep-25   31-Mar-25 30-Sep-24 (unaudited)   (audited) (unaudited)   £000 £000 £000   Adjusted earnings for the year (£000) 6,802 15,440 5,452 Weighted average number of Ordinary Shares in issue, excluding treasury shares (000s) 502,602 443,930 415,865 Adjusted earnings per share (pence) 1.35 3.48 1.31     Period to   Year to Period to 30-Sep-25   31-Mar-25 30-Sep-24 (unaudited)   (audited) (unaudited)   £000 £000 £000   Diluted adjusted earnings for the year (£000) 6,802 15,440 5,452 Diluted weighted average number of Ordinary Shares in issue, excluding treasury shares (000s) 502,602 443,930 415,865 Diluted adjusted earnings per share (pence) 1.35 3.48 1.31   6.       Hybrid credit investments   Hybrid credit investments are financial assets held at FVTPL that relate to the provision of hybrid credit capital to a diversified portfolio of companies.   30-Sep-25   31-Mar-25 30-Sep-24 (unaudited)   (audited) (unaudited)   £000 £000 £000   Brought forward 225,684 210,948 210,948 Additions - cash 13,870 24,500 15,322 Additions - refinancing of term credit investment (note 7) - 3,250 - Exits - cash - (3,987) (3,987) Settled via issue of equity investment (note 8) - (848) - Gain / (loss) on financial assets at FVTPL 787 (8,179) (4,217) Carried forward 240,341 225,684 218,066   Hybrid credit investments are comprised of:   30-Sep-25   31-Mar-25 30-Sep-24 (unaudited)   (audited) (unaudited)   £000 £000 £000   Non-current 201,224 190,100 185,871 Current 39,117 35,584 32,195 240,341 225,684 218,066     Hybrid credit investment income on the face of the consolidated statement of comprehensive income comprises:   Period to   Year to Period to 30-Sep-25   31-Mar-25 30-Sep-24 (unaudited)   (audited) (unaudited)   £000 £000 £000   Hybrid credit interest 12,244 24,184 11,959 Hybrid credit premiums - 816 816 Total hybrid credit cash revenue 12,244 25,000 12,775 Hybrid credit equitised revenue 754 2,368 - Gain / (loss) on hybrid credit assets at FVTPL 787 (8,179) (4,217) Loss on hybrid credit liabilities at FVTPL (82) (21) (46) Hybrid credit investment income 13,704 19,168 8,512   All financial assets held at FVTPL are mandatorily measured as such.   The Group's hybrid credit investment assets comprise hybrid credit financing agreements with 14 (30 September 2024: 14, 31 March 2025: 14) capital partners. Under the terms of these agreements the Group advances funds in exchange for annualised hybrid credit distributions. The distributions are adjusted based on the change in the investees' revenues, subject to a floor and a cap. The financing is secured by way of fixed and floating charges over certain of the investees' assets. The investees are provided with buyback options, exercisable at certain stages of the agreements.   7.       Term credit investments   Term credit investments are financial assets held at amortised cost. The impact of discounting is immaterial to the Consolidated Financial Statements. The below table shows both the loans at amortised cost and fair value.   30-Sep-25   31-Mar-25 30-Sep-24 (unaudited)   (audited) (unaudited)   £000 £000 £000   Brought forward 2,322 5,382 5,382 Additions - 2,286 - Refinanced via hybrid credit investment (note 6) - (3,250) Settled via issue of equity investment (note 8) - (2,192) - ECL allowance - 60 - Foreign exchange movement - 36 2,322 2,322 5,382   The Group's term credit investments comprise a secured loan advanced to one entity (30 September 2024: two, 31 March 2025: one) in connection with the Group's hybrid credit investments. The terms include a floating rate of interest payable on repayment of the investment and a maturity date on or before 4 April 2026.   The loan matures as follows:   30-Sep-25   31-Mar-25 30-Sep-24 (unaudited)   (audited) (unaudited)   £000 £000 £000   In less than one year 2,322 - - In one to two years - 2,322 - In two to five years - - 5,382 2,322 2,322 5,382   Loan investment net income on the face of the consolidated statement of comprehensive income comprises:   Period to   Year to Period to 30-Sep-25   31-Mar-25 30-Sep-24 (unaudited)   (audited) (unaudited)   £000 £000 £000   Loan interest - 158 117   ECL Analysis   The measurement of ECLs is primarily based on the product of the instrument's probability of default ("PD"), loss given default ("LGD"), and exposure at default ("EAD"). The Group analyses a range of factors to determine the credit risk of each investment. These include, but are not limited to:   ·           liquidity and cash flows of the underlying businesses ·           security strength ·           covenant cover ·           balance sheet strength   If there is a material change in these factors, the weighting of either the PD, LGD or EAD increases, thereby increasing the ECL impairment.   The disclosure below presents the gross and net carrying value of the Group's loan investments by stage: Gross carrying amount Allowance for ECLs Net Carrying amount As at 30 September 2024 £000 £000 £000 Stage 1 5,402 (20) 5,382 Stage 2 - - - Stage 3 - - - 5,402 (20) 5,382   Gross carrying amount Allowance for ECLs Net Carrying amount As at 31 March 2025 £000 £000 £000 Stage 1 2,322 - 2,322 Stage 2 - - - Stage 3 - - - 2,322 - 2,322   Gross carrying amount   Allowance for ECLs Net Carrying amount As at 30 September 2025 £000 £000 £000   Stage 1 2,322   -   2,322 Stage 2 -   -   - Stage 3 -   -   - 2,322   -   2,322   Under the ECL model introduced by IFRS 9, impairment provisions are driven by changes in credit risk of instruments, with a provision for lifetime expected credit losses recognised where the risk of default of an instrument has increased significantly since initial recognition.   The credit risk profile of the investments has not increased materially and they remain Stage 1 assets. No ECLs have been charged in the period on these assets as they are not deemed material.   The following table analyses Group's provision for ECL's by stage for the period ended 30 September 2025:   Stage 1   Stage 2   Stage 3   Total   £000   £000   £000   £000               At 1 April 2024 and 1 October 2024 78 - - 78 Expected credit losses on loan investments in period (60) - - (60) Expected credit losses on other receivables in year (18) (18) Carrying value at 31 March 2025 and 30 September 2025 -   -   -   - 8.       Equity investments   Equity investments are financial assets held at FVTPL.   30-Sep-25 31-Mar-25 30-Sep-24 (unaudited) (audited) (unaudited) £000 £000 £000 Brought forward 15,812 15,904 15,904 Additions - cash 1,034 370 - Additions - equitised revenue 754 2,368 - Additions - receipt of equity as part settlement of hybrid credit investment (note 6) - 848 - Additions - receipt of equity as part settlement of term credit investment (note 7) - 2,192 - (Loss) / gain on equity assets at FVTPL (2,579) (5,870) 969 Carried forward 15,021 15,812 16,873   The Group's equity investments comprise unlisted shares in 12 of its capital partners (30 September 2024: 12, 31 March 2025: 12).   Equity investment net income on the face of the consolidated statement of comprehensive income comprises:   Period to   Year to Period to 30-Sep-25 31-Mar-25 30-Sep-24 (unaudited) (audited) (unaudited) £000 £000 £000 Unrealised gain / (loss) on equity assets at FVTPL (2,579) (5,870) 969 Dividend income - 21 21 (2,579) (5,849) 990   9.       Hybrid credit debt liabilities   Hybrid credit debt liabilities are financial liabilities held at FVTPL.   30-Sep-25   31-Mar-25 30-Sep-24 (unaudited)   (audited) (unaudited)   £000 £000 £000   Brought forward 1,038 1,104 1,104 Payments made (66) (87) (46) Loss on financial assets held at FVTPL 82 21 46 1,054 1,038 1,104   Hybrid credit debt liabilities are comprised of:   30-Sep-25 31-Mar-25 30-Sep-24 (unaudited) (audited) (unaudited) £000 £000 £000   Current 141 140 160 Non-current 913 898 944 1,054 1,038 1,104   10.     Trade and other receivables   30-Sep-25 31-Mar-25 30-Sep-24 (unaudited) (audited) (unaudited) £000 £000 £000 Current Prepayments and accrued income 337 362 31 Other receivables 1,574 1,574 - 1,911 1,936 31 Non-current   Other receivables - -   1,574 1,911 1,936 1,605     11.     Trade and other payables   30-Sep-25 31-Mar-25 30-Sep-24 (unaudited) (audited) (unaudited) £000 £000 £000 Current Trade payables 18 13 67 Transaction costs 221 241 238 Accruals and deferred income 76 190 111 315 444 416 Non-current   Transaction costs 823 967   992 1,138 1,411 1,408     12.     Borrowings   30-Sep-25 31-Mar-25 30-Sep-24 (unaudited) (audited) (unaudited) £000 £000 £000 Secured loan   Current - accrued interest 663 723 736 Non-current 88,033 87,611 87,189 88,696 88,334 87,925   At 30 September 2025 , £10,000,000 was undrawn on the facility ( 30 September 2024: £10,000,000, 31 March 2025: £10,000,000 ).   At 30 September 2025, £1,967,000 of unamortised warrant costs and fees were outstanding (30 September 2024: £2,811,000, 31 March 2025: £2,336,000).   The table below sets out an analysis of net debt and the movements in net debt for the period ended 30 September 2025, the prior period and the year ended 31 March 2025.     Interest Payable   Borrowings   £000   £000         At 1 April 2024 632 69,772 Cash movements       Loan advanced - 17,000 Deferred finance costs paid -  (4) Interest paid (4,162) - Non-cash movements Deferred finance costs released to P&L - 421 Interest charged 4,268 - As at 30 September 2024 736 87,189         Cash movements       Interest paid (4,358) - Non-cash movements       Deferred finance costs released to P&L - 422 Interest charged 4,344 - At 31 March 2025 723 87,611   Cash movements       Interest paid (4,206)   - Non-cash movements       Deferred finance costs released to P&L -   422 Interest charged 4,146   - As at 30 September 2025 663   88,033   13.     Goodwill   30-Sep-25 31-Mar-25 30-Sep-24 (unaudited) (audited) (unaudited) £000 £000 £000   Goodwill arising on business combination 203 203 203   14.     Share capital   External Shares No.   Treasury Shares No.   Total shares No. £000 Allotted, called up and fully paid             At 1 April 2024 415,427 6,063 421,490 172,939 Shares issued to Employee Benefit Trust during the period - 2,871 2,871 - PSA shares vested during the period 1,316 (1,316) - - At 30 September 2024 416,743 7,618 424,361 172,939 Shares issued for cash during the year 85,455 - 85,455 23,500 Share issuance costs - - - (1,394) At 31 March 2025 502,198 7,618 509,816 195,045               Shares issued to Employee Benefit Trust during the period -   -   -   - PSA shares vested during the period 1,319   (1,319)   -   - At 30 September 2025 503,517   6,299   509,816   195,045     There is a single class of shares. There are no restrictions on the distribution of dividends and the repayment of capital with respect to externally held shares. The shares held by the Duke Capital Employee Benefit Trust are treated as treasury shares. The rights to dividends and voting rights have been waived in respect of these shares.   15.     Equity-settled share-based payments   Warrant reserve   There were no movements in the warrant reserve during the period:   Warrants   No. (000)   £'000       At 1 April 2024, 31 March 2025 and 30 September 2025 41,615 3,036   The warrants expire in January 2028 and have an exercise price of 45 pence. As per IFRS 2, the warrants have been valued using the Black Scholes model. A total expense of £2,771,000 has been capitalised and will be amortised over the life of the warrants. In the period to 30 September 2025, an expense of £277,000 (30 September 2024: £277,000, 31 March 2025: £554,000) was recognised through finance costs in relation to the warrants.   At 30 September 2025, 41,615,000 (30 September 2024: 41,615,000, 31 March 2025: 41,615,000) warrants were outstanding and exercisable at a weighted average exercise price of 45 pence (30 September 2024: 45 pence, 31 March 2025: 45 pence). The weighted average remaining contractual life of the warrants outstanding was 2.2 years (30 September 2024: 3.3 years, 31 March 2025: 2.8 years).   Share-based payment reserve   The following table shows the movements in the share-based payment reserve during the period:     £'000     At 1 April 2024 4,385 LTIP awards 427 At 30 September 2024 4,812 LTIP awards (18) At 31 March 2025 4,794 LTIP awards 264 At 30 September 2025 5,058     Long Term Incentive Plan   Under the rules of the Long-Term Incentive Plan ("LTIP") the Remuneration Committee may grant Performance Share Awards ("PSAs") which vest after a period of three years and are subject to various performance conditions. The LTIP awards will be subject to a performance condition based 50 per cent on total shareholder return ("TSR") and 50 per cent on total cash available for distribution ("TCAD per share"). TSR can be defined as the returns generated by shareholders based on the combined value of the dividends paid out by the Company and the share price performance over the period in question. Upon vesting the awards are issued fully paid.   The fair value of the LTIP awards consists of (a) the fair value of the TSR portion; and (b) the fair value of the TCAD per share portion. Since no consideration is paid for the awards, the fair value of the awards is based on the share price at the date of grant, as adjusted for the probability of the likely vesting of the performance conditions. Since the performance condition in respect of the TSR portion is a market condition, the probability of vesting is not revisited following the date of grant. The probability of vesting of the TCAD per share portion, containing a non-market condition, is reassessed at each reporting date. The resulting fair values are recorded on a straight-line basis over the vesting period of the awards.   4,663,000 PSAs were granted during the period to 30 September 2025 (30 September 2024: 6,226,000, 31 March 2025: 6,226,000).   At 30 September 2025, 14,521,000 (30 September 2024: 13,684,000, 31 March 2025: 13,684,000) PSAs were outstanding. The weighted average remaining vesting period of these awards outstanding was 1.9 years (30 September 2024: 2.4 years, 31 March 2025: 1.5 years). Issuance of PSAs is wholly dependent on TSR and TCAD performance conditions being met.   16.     Distributable reserves   Under Guernsey law, the Company can pay dividends provided it satisfies the solvency test prescribed by the Companies (Guernsey) Law, 2008. The solvency test considers whether the Company is able to pay its debts when they fall due, and whether the value of the Company's assets is greater than its liabilities. The Company satisfied the solvency test in respect of the dividends declared in the period.   17.     Dividends   The following interim dividends have been recorded in the period to 30 September 2025, 31 March 2025 and 30 September 2024:     Dividend per   Dividends   share   payable Record date Payment date pence/share   £000           2 April 2024 12 April 2024 0.70 2,908 28 June 2024 12 July 2024 0.70 2,909 Dividends payable for the period ended 30 September 2024 5,817       Dividend per   Dividends   share   Payable Record date Payment date pence/share   £000           27 September 2024 14 October 2024 0.70 2,917 27 December 2024 14 January 2025 0.70 3,515 Dividends payable for the period ended 31 March 2025 6,432         31 March 2025 14 April 2025 0.70   3,515 23 June 2025 14 July 2025 0.70   3,515 Dividends payable for the period ended 30 September 2025 7,030   On 26 September 2025 the Company approved a further quarterly cash dividend of 0.70 pence per share, totalling £3,516,000, which was paid on 14 October 2025.   18.     Deferred tax   Hybrid credit investment   Tax losses Total   £'000   £'000   £'000           1 April 2024 195 213 408 (Charged) / credited to profit & loss - 396 396 At 30 September 2024 195 609 804       (Charged) / credited to profit & loss (5) 2,236 2,231 Utilised in year - (158) (158) At 31 March 2025 and 30 September 2025 190   2,687 2,877   A deferred tax asset has been recognised as it is expected that future available taxable profits will be available against which the Group can use against the tax losses.   19.     Fair value measurements   Fair value hierarchy   IFRS 13 requires disclosure of fair value measurements by level of the following fair value hierarchy:   Level 1 : Inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities that the entity can readily observe.   Level 2: Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly.   Level 3: Inputs that are not based on observable market data (unobservable inputs).   The Group has classified its financial instruments into the three levels prescribed as follows:   30-Sep-25 31-Mar-25 30-Sep-24 (unaudited) (audited) (unaudited) £000 £000 £000 Financial assets Financial assets at FVTPL   - Hybrid credit investments 240,341 225,684 218,066 - Equity investments 15,021 15,812 16,873 255,362 241,496 234,939 Financial assets at amortised cost   - Term credit investments 2,322 2,322 5,382 257,684 243,818 240,321   Financial liabilities   Financial liabilities at FVTPL   - Hybrid credit debt liabilities 1,054 1,038 1,104 Financial liabilities at amortised cost   - Borrowings 88,696 88,334 87,925 89,750 89,372 89,029   Valuation techniques used to determine fair values   The fair value of the Group's hybrid credit financial instruments is determined using discounted cash flow analysis and all the resulting fair value estimates are included in level 3. The fair value of the equity instruments is determined applying an EBITDA multiple to the underlying businesses forward looking EBITDA. All resulting fair value estimates are included in level 3.   20.     Events after the financial reporting date   Investments   In October, the Company announced a £3.7 million follow-on investment into Step Investments.   Dividends   On 14 October 2025, the Company paid a quarterly dividend of 0.70 pence per share.  

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