Duke Capital has reported a six per cent year-on-year increase in recurring cash revenue to £25.8m in its latest full-year results.
The firm, which provides loans for small- and medium-sized businesses in Europe and North America, has also posted total cash revenue of £26.6m and free cash flow of £12.6m.
These were both lower their comparable 2024 figures by 12 per cent and 30 per cent, respectively.
In a statement, the AIM-listed provider said these lower cash levels reflected the lack of investment exits during 2024, whereas in 2025, it profited from three exits.
Duke’s liquidity position at year-end was a “robust” £29.8m, comprising £19.8m in cash and £10m “still available on the credit line with Fairfax”.
The firm is expecting £6.6m of recurring cash revenue in Q1 2026, a 4 per cent annual increase.
Read more: Duke Capital Q1 revenue up 5pc to £6.3m
In April, Duke invested £3.3m into New Path Fire and Security to support its acquisition plans. It also bought additional equity in the fire protection consultant, taking its stake from 15 per cent to 20.9 per cent.
In June, the firm made a £2m follow-on investment into existing capital partner Tristone Healthcare, enabling it to complete its acquisition of Serenity Care Homes – the fifth deal Duke has backed.
As part of the deal, Duke invested £500,000 of additional equity in Tristone, increasing its ownership stake from 21.3 per cent to 28.4 per cent.
Read more: Duke Capital announces £2m follow-on investment into Tristone Healthcare
Against a challenging global and UK macroeconomic backdrop, 2025 was a year in which the firm demonstrated “strategic resilience, operational discipline and consistent value delivery to our shareholders”, according to its chairman Nigel Birrell.
Operational highlights from the year included more than £24m deployed into existing capital partners, increasing equity stakes in six current partners and the completion of an oversubscribed £23.5m equity raise in November 2024.
The latter will provide additional capital to current partners to support M&A activity and “allow flexibility on the timing of Duke’s third-party, non-dilutive funding strategy”.
“Duke’s investment philosophy for some time has been to ‘stay in for longer’ with its investments and to attract higher EBITDA multiples upon exit as the portfolio matures. We announced five follow-on investments into our existing capital partners during 2025, all of whom are operating buy-and-build models,” said Birrell.
“Looking ahead, there are some positive signs emerging with inflationary pressures beginning to ease and interest rates expected to decline further. Our business model and attractiveness to investors improves in times of lower interest rates. Duke Capital will continue to work with its longstanding, private, profitable partners to ensure that we are able to deliver our operational and financial objectives to the benefit of our shareholders,” he added.
Read more: Flow Capital annual losses widen
