Follow-On Investment into Integrum Group Holdings

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 a follow-on investment of £6.0m into its existing capital partner, Integrum Group Holdings Limited ("Integrum"). This investment will enable Integrum to complete its first acquisition with Duke, in line with its acquisitive growth strategy.

Formed in September 2018, Integrum comprises a portfolio of care homes situated across the South East of England. The homes focus on nursing care within the elderly care industry, providing residential care typically for service users with higher acuity needs.

Highlights:

• Additional Duke funding of £6.0m, alongside £1.3m of internal balance sheet cash will facilitate Integrum's £7.3m acquisition of Swanborough House (Brighton) Limited ("Swanborough House")
• Swanborough House is a long-standing, profitable freehold care home with 41 beds located in Brighton, focusing on specialist adult care and more specifically continuing slow-stream treatment and rehabilitation of acquired brain injuries.
• The financing increases Duke's total credit financing in Integrum to £20.5 million. The investment terms are the same as Duke's initial investment into Integrum, including a starting yield of 13.0% and a +/- 6% annual revenue adjustment factor in respect of hybrid credit payments due.
• Duke intends to support Integrum's buy-and-build strategy, as it adds to the portfolio of seven homes acquired to date, including Swanborough House. This support recognises the company's strength as a platform and its impressive management team's strong track record in the elderly care sector
• Following the acquisition of Swanborough House, the enlarged Integrum portfolio will have extended its reach and impact in the elderly care sector, catering for over 300 service users and employing over 550 staff members.

Neil Johnson, CEO of Duke Capital, said:

"The Duke team are excited to support the acquisition of Swanborough House, further extending Integrum's growing range of specialist care services with the addition of acquired brain injury rehabilitation. We are excited to begin our M&A journey with Integrum's first acquisition partnered with Duke. Swanborough House is a well-run, high quality service care home that has been providing the local community with specialist care for over 30 years."

Opened in 1993, Swanborough House is a freehold care home with 41 beds located on the South Coast of England, close to existing Integrum homes. Swanborough House provides service users with specialist adult care, focusing on continuing slow-stream treatment and rehabilitation of acquired brain injuries. The care provided aims to help service users regain their independence as much as is possible within the boundaries of their condition. The home primarily consists of single occupancy en-suite bedrooms, with options to support more independent living.

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