Duke Capital (AIM:DUKE), a provider of hybrid capital solutions for SME business owners in Europe and North America, said on Wednesday that its directors believe the current share price sits at a material discount to net asset value.
The AIM-listed company issued the update in response to recent share price movement, reporting total cash revenue of £7m for the quarter to 30 September, in line with the previous quarter. Duke said its interim dividends of 1.4p were covered by free cash flow for the period.
The company has made substantial progress on portfolio reorganisations flagged in its full-year accounts, exiting materially loss-making divisions at two of its investments.
Duke said it expects lower recurring revenue from its UK portfolio in the second half as the domestic market remains challenging, with its investment team now focused on improving UK performance into next year.
Two capital partners are in late-stage exit processes that, if concluded, could have a material positive impact on market expectations for total cash revenue in the 2027 financial year.
Duke said it would release updates on any material developments relating to reorganisations or exits in due course, ahead of interim accounts due on 3 December.