Duke Capital (LSE:DUKE) delivered growth in revenue, free cash flow and earnings during the 2026 financial year, demonstrating the resilience of its hybrid capital investment model despite a challenging economic backdrop.
The company reported total cash revenue of £28.6 million for the year, representing a 7% increase, while recurring cash revenue rose 5% to £27.1 million. Free cash flow increased 13% to £14.2 million, supporting the board’s decision to maintain its annual dividend at 2.80 pence per share.
Profit Growth Driven by Improved Portfolio Valuations
Profit after tax increased to £11.0 million during the year, benefiting in part from lower non-cash fair value losses compared with the prior period.
The result reflects the continued performance of Duke’s portfolio and the cash-generative nature of its investment model, which focuses on providing long-term capital solutions to small and medium-sized businesses.
Management said the business continued to perform well despite an operating environment characterised by inflationary pressures, higher costs and restricted access to financing for many companies.
Capital Redeployed Across Existing Partners
During the year, Duke deployed more than £21 million into existing capital partners, reinforcing its commitment to supporting portfolio company growth while deepening established relationships.
The company said its disciplined approach to capital allocation remains central to its strategy, allowing it to expand exposure to businesses it knows well while maintaining a focus on risk management and recurring income generation.
Management believes this strategy provides greater visibility over future cash flows while supporting long-term value creation.
Hybrid Capital Model Demonstrates Resilience
Duke highlighted the defensive qualities of its hybrid capital structure, which combines elements of debt and equity financing and aligns returns with the performance of partner businesses.
The model is designed to provide entrepreneurs with long-term growth capital without the refinancing risks associated with conventional lending structures.
Management said the approach has continued to prove resilient despite economic uncertainty and remains well suited to the current environment, where access to traditional funding remains constrained for many SMEs.
Monitoring Economic and Geopolitical Risks
The board noted that it remains attentive to broader macroeconomic developments, including inflationary pressures, weakness in the UK economy and geopolitical tensions in the Middle East.
Despite these uncertainties, Duke said it remains focused on maintaining financial discipline, preserving income visibility and supporting the growth of its portfolio companies.
Looking ahead, the company expects recurring cash revenue of approximately £7.0 million during the first quarter of the 2027 financial year.
Focused on Long-Term Income Generation
Management continues to prioritise predictable cash generation and sustainable shareholder returns through a combination of recurring revenue streams and disciplined capital deployment.
The maintained dividend reflects confidence in the underlying strength of the portfolio and the company’s ability to continue generating stable cash flows despite a more challenging economic backdrop.
More about Duke Capital
Duke Capital Limited is a Guernsey-based provider of hybrid capital solutions to small and medium-sized businesses across Europe and North America. Listed on AIM, the company offers long-term financing structures that combine characteristics of both debt and equity, enabling business owners to access growth capital while avoiding traditional refinancing risks. Duke’s model is designed to generate recurring income, preserve capital and align investor returns with the growth of its portfolio companies.
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