Duke Capital reports steady Q3 revenue growth amid market headwinds

Published 30/12/2024, 08:02
Duke Capital reports steady Q3 revenue growth amid market headwinds

LONDON - Duke Capital Limited (AIM: DUKE), a financier of small and medium-sized enterprises (SMEs) in Europe and North America, has announced a modest increase in its recurring cash revenue for the third quarter of the financial year ending March 31, 2025. The company, known for its hybrid capital solutions combining equity and debt features, reported a 4% year-on-year revenue growth for the quarter ending December 31, 2024.

According to the trading and operational update, Duke Capital expects recurring cash revenue to reach £6.5 million for Q3 FY25, up from £6.3 million in the same quarter of the previous fiscal year. This also marks a slight increase from the £6.4 million recorded in the second quarter of FY25, which was heralded as a record for the company.

The company’s CEO, Neil Johnson, commented on the results, stating, "We are pleased to report that despite the ongoing uncertainties in the UK markets, we continue to deliver revenue growth." Johnson also highlighted the company’s stable dividend, which he noted offers an approximate 9% yield based on the current share price.

Duke Capital has recently completed a £23.5 million fundraise, which is intended to support portfolio mergers and acquisitions (M&A) and to advance the company’s third-party, non-dilutive funding strategy aimed at accelerating growth. Additionally, significant strides have been made in the search for a third-party capital partner to support Duke through its next growth phase.

The company’s financial approach, described as a ’corporate mortgage,’ aims to eliminate refinancing risk and the need for a short-term exit, aligning its returns with the success of its business partners. Duke Capital emphasizes capital preservation, attractive dividend yield, and upside upon exits as its three investment pillars.

This trading update is based on a press release statement from Duke Capital Limited and reflects the company’s operational status as of the end of December 2024. The information is provided by RNS, the news service of the London Stock Exchange (LON:LSEG), and is subject to terms and conditions of use and distribution.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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