Duke Capital Reports Steady Recurring Revenue Growth in Q2 FY26

Duke Capital (LON: DUKE) announced a second-quarter trading update on Monday, revealing a 3% year-on-year increase in recurring cash revenue, reaching £6.6 million.

The figure aligns with the previous quarter (Q1 FY26) and indicates stability amidst a challenging economic backdrop.

Recurring cash revenue, which excludes exit premium receipts and cash gains from equity sales, is a key metric for Duke, reflecting the consistent income generated from its hybrid capital solutions for SMEs.

Total cash revenue for Q2 FY26 was not explicitly stated but, based on Q1 FY26 numbers, it is expected to be slightly higher than recurring revenue due to additional gains.

The company's performance appears robust given prevailing economic headwinds. While the UK market has experienced persistent high inflation, Duke Capital has maintained consistent year-on-year growth in recurring cash revenues, showcasing the resilience of its business model.

A notable development during the last quarter was the reduction in the UK base rate in August. Duke Capital anticipates that lower interest rates will positively impact its business model and attractiveness to investors.

This, coupled with a strong balance sheet, is expected to enhance the company's ability to deliver long-term, sustainable value to shareholders.

Revenue Snapshot:

• Q1 FY25: £6.3 million (Recurring), £6.8 million (Total)
• Q2 FY25: £6.4 million (Recurring), £6.8 million (Total)
• Q1 FY26: £6.6 million (Recurring), £6.6 million (Total)

Neil Johnson, CEO of Duke Capital, said: “Our business model continues to show its resilience in a challenging UK market where we have seen persistent high inflation. Despite this, we have consistently delivered year-on-year increases in our recurring cash revenues. During the last quarter, we were pleased to see the UK base rate fall in August. Our business model and attractiveness to investors benefits with lower interest rates. Along with our strong balance sheet, this will enhance our ability to deliver long-term, sustainable value for shareholders.”