REG - DSW Capital PLC - Half Year Trading Update and Notice of Results

DSW CapitalAnnouncement

03/11/2022 07:01

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RNS Number : 1280F  DSW Capital PLC  03 November 2022

3 November 2022

DSW CAPITAL PLC

("DSW Capital", "DSW" or the "Group")

(AIM: DSW)

 

Trading Update and Notice of Half Year Results

Strong H1 performance; on track to achieve full year expectations

 

DSW Capital, a profitable, fast growing, mid-market, challenger professional
services licence network and owner of Dow Schofield Watts brand, announces the
following trading update ahead of the Group's Half Year Results for the period
ended 30 September 2022 ("H1 23" or the "Period"), which are expected to be
released on 1 December 2022.

 

The Group continued to trade strongly in H1 23, with network revenue rising to
£9.8m, up 34.2% compared to the same period in the prior year (H1 22:
£7.3m). This resulted in total income from licensees(1) in the Period of
£1.6m, up 40.0% compared to the same period in the prior year (H1 22:
£1.2m), which has more than covered the ongoing cost of being on AIM,
resulting in Adjusted Pre-Tax Profit(2) of £0.9m (H1 22: £0.8m).

 

Fee Earners increased to 93 by 30 September 2022, up 5.7% since the full year
end, as the Group continued to benefit from its heightened profile following
IPO and its investment in central resource.

 

Demand for the DSW Network's services, which are primarily SME focused,
remained strong throughout the Period, against a backdrop of reducing deal
volumes across the wider market(3). As a result, Dow Schofield Watts moved up
Experian's rankings to 10(th) Most Active Corporate Finance Advisor in the UK
in the first half of 2022(3), compared to 13(th) in the first half of 2021.

 

Outlook

 

The Board is pleased with the first half performance and believes current
trading, against a backdrop of wider economic uncertainties and the potential
effect of this on SME activity, is on track to achieve market expectations for
the year ending 31 March 2023. Since the Period end, the Group has welcomed a
new Wealth Planning partner and activity levels have been consistent with the
Board's expectations.

 

(1) Total income from licensees represents statutory revenue plus share of
results in associates

(2) Adjusted Pre-Tax Profit excludes IPO costs and share based payment
charge

(3) Experian Market IQ: H1 2022 Report

 

Enquiries:

 

 DSW Capital

 James Dow, Chief Executive Officer              Tel: +44 (0) 1928 378 029

 Nicole Burstow, Chief Financial Officer         Tel: +44 (0) 1928 378 039

 Shore Capital (Nominated Adviser & Broker)      Tel: +44 (0)20 7408 4090

 James Thomas / John More / Mark Percy

 Guy Wiehahn (Corporate Broking)

 Belvedere Communications

 Cat Valentine                                   Tel: +44 (0) 7715 769 078

 Keeley Clarke                                   Tel: +44 (0) 7967 816 525

                                                 dsw@belvederepr.com (mailto:dsw@belvederepr.com)

 

Notes to Editors 

 

About DSW Capital

 

DSW Capital, owner of the Dow Schofield Watts brand, is a profitable, fast
growing, mid-market, challenger professional services network with a cash
generative business model and scalable platform for growth. Originally
established in 2002, by three KPMG alumni, DSW is one of the first platform
models disrupting the traditional model of accounting professional services
firms. At the Period end DSW operated licensing arrangements with 20 licensee
businesses with 93 fee earners ("FEs"), across seven offices in England and
three in Scotland. These trade primarily under the Dow Schofield Watts brand.

 

DSW's vision is for the DSW Network to become the most sought-after
destination for ambitious, entrepreneurial professionals to start and develop
their own businesses. Through a licensing model, DSW gives professionals the
autonomy and flexibility to fulfil their potential. Being part of the DSW
Network brings support benefits in recruitment, funding and infrastructure.
DSW's challenger model attracts experienced, senior professionals,
predominantly with a "Big 4" accounting firm background, who want to launch
their own businesses and recognise the value of the Dow Schofield Watts brand
and the synergies which come from being part of the DSW Network.

 

DSW aims to scale its agile model through organic growth, geographical
expansion, additional service lines and investing in "Break Outs" (existing
teams in larger firms). The Directors are targeting high margin,
complementary, niche service lines with a strong synergistic fit with the
existing DSW Network.

 

 

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