Duke Capital Limited’s Post

Hardman & Co publication on Duke Capital Limited (DUKE): FY’24 results: record cashflows In our April 2024 initiation, we highlighted that DUKE, by optimising the best of equity and debt, aimed to achieve equity-type returns with debt levels of risk. We highlighted four pillars of returns, namely: i) term credit; ii) participating preference share elements, which support DUKE shareholders’ high (2025E: 9.0%), growing (2027E: 14% above FY’24), and 1.7x covered dividend; iii) early exit fees; and iv) equity stakes. The 2024 results saw three of the four show positive returns; consequently, DUKE delivered record recurring cash revenue (+12% to £24.3m) and total cash revenue (+38% to £30.2m), with £18m free cashflow. Download the full report here: https://lnkd.in/exe5Hu2h #research #investing #financials #financialservices * We highlight the relevant business risks in the note.

We are pleased to provide a trading update for the first quarter of the financial year ending 30 June 2025.   We delivered recurring revenue of £6.3 million, representing a 5% increase year-on-year and 9% growth from the previous quarter. Total cash revenue for the quarter was £6.8 million, driven by the full exit of Fairmed Healthcare. During the quarter, we completed a £2.9 million follow-on investment in Step Investments, supported the sale of City Education & Learning Group for €5.2 million with an additional €3 million deferred, and invested £3.0 million into United Glass Group to facilitate its acquisition of Premier Double Glazed Units. Our CEO Neil Johnson said: “It is my pleasure to report another solid quarter of Duke’s operating performance for Q1 FY25 and to forecast a record recurring revenue performance for Q2 FY25. In August, we welcomed the Bank of England’s decision to deliver the first rate cut in over four years, since the UK economic backdrop certainly remains challenging relative to the United States.   “Despite the macro headwinds, it is pleasing to report that Duke’s diversified portfolio across the UK, Ireland, Canada and the United States continues to deliver reliable returns resulting in a strong dividend stream being paid out to its shareholders.” Read more details below: #DukeCapital #TradingUpdate #PrivateCredit #HybridFinance #HybridCapital

We are delighted to present Mark Thomas' initiation note on Duke Capital Limited, which provides SMEs across the globe with bespoke, flexible capital to achieve their growth potential.    DUKE provides hybrid capital to UK, European and North American SMEs and, by bringing clear benefits to its customers, it creates value for its shareholders. Finance is provided by way of a loan and linked preference share, which, for accounting purposes, are consolidated as a single item. Additionally, there is an early exit fee and, in most cases, some equity stake/warrant is taken, but not one which compromises the customer’s control of the business or their upside potential. DUKE thus has four “pillars” to its returns.    Mark's note looks at how DUKE's growth options are linked to these four “pillars”, focusing on generating more revenue as a result of current clients’ growth, positive inflation gearing and early exit fees. DUKE's unique position and offering limit the risk of competition due to the high barriers of entry, enabling it to generate strong returns, leading to a high dividend.  * We highlight the relevant business risks in the note.    Download the full report here - https://lnkd.in/evUexXmi #smefunding #funding #finance #investmentmanagement #sme

We are delighted to share with you Hardman & Co's initiation note on Duke Capital. The report provides a detailed analysis of our unique business model and strategic focus which make Duke an attractive investment case for investors. Hardman & Co analyst Mark Thomas, explains that ‘Duke provides hybrid capital to UK, European and North American SMEs and, by bringing clear benefits to its customers, it creates value for its shareholders. Finance is provided by way of a loan and linked preference share, which, for accounting purposes, are consolidated as a single item. Additionally, there is an early exit fee and, in most cases, some equity stake/warrant is taken, but not one which compromises the customer’s control of the business or their upside potential. Duke thus has four “pillars” to its returns.’ The report looks at how Duke's growth options are linked to these four “pillars”, focusing on generating more revenue as a result of current clients’ growth, positive inflation gearing and early exit fees. Duke's unique position and offering limit the risk of competition due to the high barriers of entry, enabling it to generate strong returns, leading to a high dividend. You can find the full report under the 2024 banner for Reports, Results & Presentations on our website: https://lnkd.in/ejjBGwMC #DukeCapital #PrivateCredit #HybridFinance #HybridCapital #SMEFinance #Hardman #InvestmentResearch

Read our latest update on Duke Capital Limited after H1 25 results were published this morning. #DUKE is on track to meet our FY25 forecasts with recurring cash revenue of £12.7m, up 4% YoY. The group deployed over £15m in new capital to its capital partners during the half. Post period end, Duke successfully completed an oversubscribed £23.5m equity raise, materially strengthening its balance sheet and intends future capital funding to be generated by way of a third-party capital model. Duke is trading at a c25% discount to book despite generating returns above its cost of capital with multiple further investment opportunities and the potential for larger equity returns as its portfolio matures. We recently published an initiation on Duke which is available here: https://lnkd.in/e6XdAugq #Research #Equities #UKEquities #SMEs #AIM #investmentresearch

Bumpy Landing Ahead? https://lnkd.in/ehSmEQNc U.S. equity markets posted a second-straight weekly gain as investors parsed mixed economic data and status-quo Fed commentary indicating a path towards easing monetary conditions this summer. Underscoring the seemingly unshakable nature of the equity market rally, markets were unfazed by yet another economic curveball - the shocking collapse of the Key Bridge in Baltimore. Concluding a historically strong first quarter at fresh record-highs, the S&P 500 advanced another 0.4% this week to push its quarterly gain to over 10%. Real estate equities were also among the leaders this week as M&A and capital-raising activity indicated that public REITs may be poised to become aggressive on the external growth front. Invitation Homes advanced 3% this week after it reached a deal with Nuveen to manage roughly 3,000 of its properties. Rexford Industrial announced reached a $1.0B deal to buy 48 industrial properties from Blackstone and its non-traded affiliate, BREIT. REIT Academy & The Executive REIT Masterclass | The Daily REIT Beat Newsletter | Seeking Alpha | David Auerbach | Alex Pettee, CFA | #REITs #Dividends #Investing #Income #Yield #RealEstate #Housing #Stocks #Bonds #HighYield #DividendInvesting #IncomeInvesting #Diversification #Inflation #realassets #investment

The existential threat at the heart of Britain's biggest wealth manager. St James’s Place, Britain’s biggest wealth manager, was promoted to the FTSE 100 for the first time almost exactly ten years ago. Mick McAteer. Mark FitzPatrick. Check out Chris Newlands' latest article 👇 https://incm.pub/3JZAhUO #investing #assetmanagement #wealthmanagement #finance

🚨 Why Now is the Prime Time to Invest in Private Credit 🚨 With the Federal Reserve expected to lower interest rates soon, savvy investors are recognizing a unique window of opportunity in the private credit market. Here’s why now is the perfect moment to take action: 1️⃣ Lock in Higher Yields: Secure today’s higher interest rates before they drop, ensuring better returns on your investment. Ballard Global’s Global Lending Fund and Legacy Funds offer APYs from 9.25 - 15%. 2️⃣ Leverage Favorable Credit Spreads: Current credit spreads are more attractive now than they will be post-rate cut. Acting early allows you to capitalize on these favorable spreads before the competition tightens. 3️⃣ Stay Ahead of the Crowd: As rates fall, more investors will turn to private credit, driving up competition and potentially lowering future returns. By investing now, you secure prime opportunities before they become scarce. 4️⃣ Mitigate Reinvestment Risk: Locking in higher rates today means less risk of reinvesting at lower yields later. Ballard’s funds are structured to deliver stable, predictable returns. 5️⃣ Diversify Your Portfolio: Private credit offers diversification benefits, reducing volatility compared to traditional assets. With Ballard Global’s strategic investments, you can add stability and growth to your portfolio. 📈 Take advantage of this unique opportunity to secure higher yields and protect your portfolio for the future. Learn more about Ballard Global’s diversified private credit funds today. #PrivateCredit #Investing #BallardGlobal #IncomeGeneration #WealthBuilding #Diversification

Chris Blumas, MBA, CFA, portfolio manager at Raymond James Investment Counsel Ltd., has revealed his top stock picks for June 2024. Here are the highlights from BNN Bloomberg's Market Call: 📈 Mainstreet Equity Corp. (MEQ TSX): Focuses on mid-market multi-family apartment buildings, primarily in Alberta and British Columbia, offering strong growth potential. 📈 Visa (V NYSE): A digital payments giant with significant revenue from international markets and a leader in payment solutions. 📈 Fortis Inc. (FTS TSX): Operates regulated utilities across North America, providing stable returns and a solid dividend yield. These selections reflect a strategic approach to navigating today's market. Consider adding these companies to your investment portfolio for a diversified and defensively positioned strategy. #Investing #StockMarket #Finance #TopPicks https://lnkd.in/g6c_nBwR

London bound again 🚆 for the monthly IC. As per usual focusing on seeing the managers where we see the biggest opportunities or risks for the coming 3-6 months. This trip centres around some of our best performers during the volatile month we’ve just seen, in US Smaller Companies and Short Dated High Yield Bonds. Looking at longer term….meeting the managers of a private equity trust we hold, assessing just how much PE cash should we expect to flood our shores in 2025’s Trump 2nd coming. Intrigued to see the guys at Columbia Threadneedle Investments, US today…. Their ‘alleged’ cheap and cheerful multi asset range continues to outperform the vast majority of the big boys and why they still get a place in our portfolios. If intrigued, compare your performance against theirs via trustnet and I bet you’ll be surprised as and when you then compare fees. If intrigued how our portfolios compare against the ‘big boys’ or your own portfolio, just ask, I have the data. #financialfreedom #activemanager #wheretoinvest