Interim Financial Results

4 December 2025

Duke Capital Limited

("Duke Capital", "Duke" or the "Company")

Interim Financial Results for the six months to 30 September 2025

Resilient performance with platform for growth

Duke Capital Limited (AIM: DUKE), a leading provider of hybrid capital solutions for SME business owners in Europe and North America, is pleased to announce its interim results for the six months ended 30 September 2025 ("Interim 2026").

Financial and Operational Highlights:

· Recurring cash revenue* totalled £13.2 million, an increase of 3% on Interim 2025 (£12.7 million)

· Total cash revenue also £13.2 million, down 3% from the prior period (Interim 2025: £13.5 million) due to the absence of investment exits

· Free cash flow** of £5.9 million, in line with Interim 2025 (£5.9 million), despite no investment exits in the period

· Continued disciplined investment strategy with over £15 million of deployments made into existing Capital Partners during the period

· Cash operating expenses of £2.1 million, down 21% from Interim 2025 (£2.6 million)

· Cash dividends of 1.40 pence per share paid during the period (Interim 2025: 1.40 pence per share)

· Cumulative dividends of 21.40 pence per share paid over 33 consecutive quarters since inception

Post-Period End Highlights:

· £6.8 million of recurring cash revenue expected in Q3 FY26, representing a 5% year-on-year increase (Q3 FY25: £6.5 million)

· In October 2025, invested £3.7 million into Step Investments Limited to acquire the Irish commercial radio station Galway Bay FM

* Recurring cash revenue excludes exit premiums and cash gains from the sale of equity investments

** Free cash flow is defined as net cash inflows from operations plus cash gains from the sale of equity investments less net transaction costs less interest paid on borrowings

Nigel Birrell, Chairman of Duke Capital, said: "Our resilient performance over the first half once again highlights the strength and reliability of Duke's model. In a period where many SMEs continue to face challenging conditions, we've remained focused on supporting our partners' growth ambitions and maintaining stable returns for shareholders.

"Looking ahead, any easing of borrowing costs would be beneficial for Duke, lowering our own financing costs while improving our relative attractiveness to income-focused shareholders thanks to our strong yield profile. With a robust balance sheet and disciplined investment approach, Duke Capital is well placed to build on its strong foundations."

For further information, please visit https://dukecapital.com/ or contact:

Duke Capital Portfolio

A full list of Duke's current partners is included for reference on the Partners page of the Company's website: www.dukecapital.com/partners.

About Duke Capital

Duke is a leading provider of hybrid capital solutions for SME business owners in Europe and North America, combining the best features of both equity and debt.

Since 2017, Duke has provided unique long-term financing which eliminates re-financing risk and necessity for a short-term exit by providing a unique 'corporate mortgage' while also aligning its returns to grow with the success of the business.

Duke is focused on generating attractive risk-adjusted returns for shareholders and has a track record of achieving this across market cycles. It's three investment pillars are capital preservation, attractive dividend yield, and to provide upside upon exits.

Duke is listed on the AIM market under the ticker DUKE and is headquartered in Guernsey.

CHAIRMAN'S REPORT

Dear Shareholder,

I am pleased to report that during the first half of the financial year, Duke Capital has delivered another period of solid performance, reflecting the strength of our model and the quality of our portfolio. The Group continued to generate strong recurring cash revenue and deploy capital prudently to support our long-term partners in achieving their growth objectives.

During the period, we deployed over £15 million across six existing capital partners, to enable our partners to pursue strategic acquisitions and organic expansion. The largest of these was a £6.0 million investment into Integrum Group Holdings Limited, facilitating the acquisition of Swanborough House, a long-standing UK freehold care home. All these deployments have contributed to the continued maturity and cash generation of the portfolio, reinforcing Duke's capacity to deliver sustainable growth and shareholder returns.

Since the period end, the Company has also announced a follow-on investment of £3.7 million into Step Investments Limited. These funds allowed Step to acquire the Irish commercial radio station Galway Bay FM, further demonstrating Duke's disciplined approach of providing its existing partners with capital to acquire well-established, cash-generative businesses

Market Environment and Outlook

The steady growth in our investment portfolio has been delivered against what must be viewed as a tough SME market backdrop, particularly in the UK economy. Inflationary pressures in the UK have remained stubbornly high, resulting in the UK having higher interest rates and borrowing costs compared to other wealthy OECD countries. Furthermore, persistently weak macroeconomic data releases have led to a challenging market backdrop with credit conditions tightening and consumer discretionary spend either being curtailed or delayed.

Similarly, improving market conditions are a prerequisite for making headway with potential third party capital partners who are aligned with our long-term vision. Our efforts continue to have sustainable growth both organically inside the portfolio and through new third party capital. However, growth must serve long-term shareholder value by being on accretive terms - not growth for its own sake.

Despite these current market headwinds, market consensus, especially following the recent UK Budget, does point towards a gradual reduction in interest rates over the next 12 to 18 months to put the UK economy more in line with its OECD peers. Any such movement would be beneficial to Duke, lowering its own borrowing costs while improving the Company's relative attractiveness to income-focused investors given its strong yield profile.

While investor sentiment across UK small-cap equities remains cautious, Duke's differentiated offering; providing long-term, secured debt capital to profitable private businesses in the UK, Ireland and North America, continues to demonstrate resilience and relevance. The Group's diversified portfolio, recurring cash revenue base and low central overhead underpin a robust balance sheet and high visibility of future cash generation and dividends.

Looking ahead, Duke Capital remains focused on new capital sources while continuing disciplined capital allocation through the continued support of its portfolio companies buy-and-build strategies. The Board remains confident in the Company's ability to deliver attractive returns and long-term value to shareholders.

Nigel Birrell

Chairman

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATED STATEMENT OF INCOME

All income is attributable to the holders of the Ordinary Shares of the Company.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

NOTES TO THE FINANCIAL STATEMENTS

1. General Information

Duke Capital Limited ("Duke Capital" or the "Company") is a company limited by shares, incorporated in Guernsey under the Companies (Guernsey) Law, 2008. Its shares are traded on the AIM market of the London Stock Exchange.

Throughout the period, the "Group" comprised Duke Capital Limited and its wholly owned subsidiaries; Duke Capital UK Credit Limited, Duke Capital US Holdings, Inc and Duke Capital Employee Benefit Trust.

The Group's investing policy is to invest in a diversified portfolio of hybrid credit finance and related opportunities.

2. Significant accounting policies

2.1 Basis of preparation

The interim Condensed Consolidated Financial Statements of the Group have been prepared in accordance with UK adopted international accounting standards, and applicable Guernsey law, and reflect the following policies, which have been adopted and applied consistently.

On 31 December 2020, IFRS as adopted by the European Union at that date was brought into the UK law and became UK-adopted international accounting standards, with future changes being subject to endorsement by the UK Endorsement Board. The Group transitioned to UK-adopted international accounting standards in its consolidated financial statements on 1 April 2021. There was no impact or changes in accounting from the transition.

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34 Interim Financial Reporting, as adopted for use in the UK.

The accounting policies adopted in the preparation of the interim Condensed Consolidated Financial Statements are consistent with those followed in the preparation of the Consolidated Financial Statements of the Group for the year ended 31 March 2025.

No new or revised standards or interpretations that have become effective during the period ended 30 September 2025 have had a material effect on the financial statements of the Group.

The Directors consider that the Group has adequate financial resources to enable it to continue operations for a period of no less than 12 months from the date of approval of the financial statements. Accordingly, the Directors believe that it is appropriate to continue to adopt the going concern basis in preparing the financial statements.

2.2 Going concern

In assessing the going concern basis of accounting the Directors have had regard to the guidance issued by the Financial Reporting Council. After making enquiries and bearing in mind the nature of the Company's business and assets, the Directors consider that the Company has adequate resources to continue in operational existence for the foreseeable future.

The cash flow needs of the Group have been assessed taking account the need for further funding for any of the existing hybrid credit partners and the ongoing working capital needs of the business against the current cash and liquidity of the Group.

2.3 Material accounting policies

In the application of the Group's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

The principal accounting policies applied in the presentation of the condensed consolidated interim financial statements of Duke Capital, including the critical accounting judgements made by the Directors and the key sources of estimation, are consistent with those followed in the preparation of the Group's Annual Report and consolidated financial statements for the year ended 31 March 2025 and have been consistently applied throughout the period ended 30 September 2025.

3. Finance Costs

4. Income tax

The Company has been granted exemption from Guernsey taxation. The Company's subsidiary in the UK is subject to taxation in accordance with relevant tax legislation.

Factors affecting income tax expense for the period

5. Earnings per share

Basic earnings per share is calculated by dividing total comprehensive income for the period by the weighted average number of shares in issue throughout the period, excluding treasury shares (see Note 14). Diluted earnings per share represents the basic earnings per share adjusted for the effect of dilutive potential shares issuable on exercise of share options under the Company's share-based payment schemes, weighted for the relevant period.

All share options, warrants and Long-Term Incentive Plan awards in issue are not dilutive at the year-end as the exercise prices were above the average share price for the period. However, these could become dilutive in future periods.

Adjusted earnings per share

Adjusted earnings represent the Group's underlying performance from core activities. Adjusted earnings is the total comprehensive income adjusted for unrealised and non-core fair value movements, non-cash items and transaction-related costs, including due diligence fees, together with the tax effects thereon. Given the sensitivity of the inputs used to determine the fair value of its investments, the Group believes that adjusted earnings is a better reflection of its ongoing financial performance.

Valuation and other non-cash movements such as those outlined are not considered by management in assessing the level of profit and cash generation of the Group. Additionally, IFRS 9 requires transaction-related costs to be expensed immediately whilst the income benefit is over the life of the asset. As such, an adjusted earnings measure is used which reflects the underlying contribution from the Group's core activities during the year.

6. Hybrid credit investments

Hybrid credit investments are financial assets held at FVTPL that relate to the provision of hybrid credit capital to a diversified portfolio of companies.

Hybrid credit investments are comprised of:

Hybrid credit investment income on the face of the consolidated statement of comprehensive income comprises:

All financial assets held at FVTPL are mandatorily measured as such.

The Group's hybrid credit investment assets comprise hybrid credit financing agreements with 14 (30 September 2024: 14, 31 March 2025: 14) capital partners. Under the terms of these agreements the Group advances funds in exchange for annualised hybrid credit distributions. The distributions are adjusted based on the change in the investees' revenues, subject to a floor and a cap. The financing is secured by way of fixed and floating charges over certain of the investees' assets. The investees are provided with buyback options, exercisable at certain stages of the agreements.

7. Term credit investments

Term credit investments are financial assets held at amortised cost. The impact of discounting is immaterial to the Consolidated Financial Statements. The below table shows both the loans at amortised cost and fair value.

The Group's term credit investments comprise a secured loan advanced to one entity (30 September 2024: two, 31 March 2025: one) in connection with the Group's hybrid credit investments. The terms include a floating rate of interest payable on repayment of the investment and a maturity date on or before 4 April 2026.

The loan matures as follows:

Loan investment net income on the face of the consolidated statement of comprehensive income comprises:

ECL Analysis

The measurement of ECLs is primarily based on the product of the instrument's probability of default ("PD"), loss given default ("LGD"), and exposure at default ("EAD"). The Group analyses a range of factors to determine the credit risk of each investment. These include, but are not limited to:

· liquidity and cash flows of the underlying businesses

· security strength

· covenant cover

· balance sheet strength

If there is a material change in these factors, the weighting of either the PD, LGD or EAD increases, thereby increasing the ECL impairment.

The disclosure below presents the gross and net carrying value of the Group's loan investments by stage:

Under the ECL model introduced by IFRS 9, impairment provisions are driven by changes in credit risk of instruments, with a provision for lifetime expected credit losses recognised where the risk of default of an instrument has increased significantly since initial recognition.

The credit risk profile of the investments has not increased materially and they remain Stage 1 assets. No ECLs have been charged in the period on these assets as they are not deemed material.

The following table analyses Group's provision for ECL's by stage for the period ended 30 September 2025:

8. Equity investments

Equity investments are financial assets held at FVTPL.