RNS Reach

28 August 2024

Duke Capital Limited

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

Successful Sale of Portfolio Company Asset

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 that its existing capital partner, Step Investments Limited ("Step"), has successfully completed the sale of its own subsidiary, City Education & Learning Group Limited ("City Colleges").

Step is a diversified investment group with core interests in the education, cinema advertising, outdoor digital advertising and radio station sectors across the UK and Ireland. Duke has invested £11.5m of capital in Step since its initial investment in 2018. The Step group includes Pearl and Dean Cinemas Limited, Pearl and Dean Ireland, Wide Eye Media, City Education & Learning Group Limited, Adtower Limited and Bay Broadcasting Limited.

Highlights:

·        City Colleges has been acquired by Planet Education Works ("PEN"), a leading provider of educational services and solutions, headquartered in London. With a mission to revolutionise education through innovation, PEN operates a diverse portfolio of institutions and online platforms, offering a wide range of programmes and services across the education spectrum.

·        On completion of the sale, Step received initial cash proceeds of €5.2m.

·        A put and a call option has been agreed for the sale of Step's remaining 25% interest on the second anniversary date for a further €3.0m at an exercise price of €120,000 per share, valuing City Colleges at €12.0m.

Neil Johnson, Duke Capital CEO said:

"The team at Step continue to prove themselves as savvy dealmakers who are able to identify attractive businesses with potential for scalability. The sale of City Colleges is on the back of strong operating performance and increased business diversification, which in turn, invited a strong offer for the business by PEN."

Mike Ormonde, Step CEO said:

"This exit represents an outstanding return for Step having taken majority control of City Colleges just three years ago in a transaction funded by Duke. The proceeds from the sale will allow Step to continue its buy and build strategy with a renewed focus on media opportunities across the UK and Ireland."

About City Education & Learning Group Limited

City Education Group is a distinguished education provider based in Dublin, Ireland. The group operates several schools and colleges, offering a comprehensive range of academic and professional programmes. With a strong focus on quality education and student success, City Education Group has established itself as a trusted name in Irish education.

***ENDS***

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

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. Its 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.

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