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

DSW CapitalAnnouncement

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RNS Number : 3217H  DSW Capital PLC  13 November 2025

 

13 November 2025

Half Year Trading Update

and

Notice of Results

Network Revenue up 32% with continued Fee Earner growth

 

DSW Capital, a profitable, mid-market, challenger professional services
platform and owner of the Dow Schofield Watts and the DR Solicitors brands,
announces the following trading update ahead of the Group's half year results
for the six months ended 30 September 2025 ("H1 FY26" or the "Period"), which
are expected to be released on 24 November 2025.

The Board is pleased to report that trading remained resilient throughout the
Period and in line with management expectations.

 

Highlights

 

 •    Adjusted EBITDA rose significantly to £0.7m (H1 FY25: £0.1m), reflecting a
      full six-month contribution from DR Solicitors, acquired in November 2024
 •    Network Revenue increased by 32% to £10.3m, driven by the acquisition of DR
      Solicitors, and growth within existing DSW licensee businesses
 •    Number of Fee Earners using the DR Solicitors platform increased to 26 at the
      half year end, up from 20 on acquisition
 •    Fee Earners increased by 8 to 144 at 30 September 2025 (31 March 2025:
      136)
 •    Cash conversion was strong, with cash at 30 September 2025 of £2.2m after a
      £1m loan repayment
 •    The Group's financial results are typically weighted towards the second half
      of the year. Whilst the business is currently trading well, the Board is
      mindful of the well documented geo-political and economic uncertainties,
      particularly in relation to the Autumn Budget

 

Trading Performance in H1 FY26

 

Network Revenue in H1 FY26 was £10.3m (H1 FY25: £7.8m), resulting in
Total Income in the Period of £2.8m (H1 FY25: £1.1m) and
Adjusted EBITDA of £0.7m (H1 FY25: £0.1m).

 

The Group's strategic aim is to build a resilient and diversified group of
licensee businesses, as demonstrated by the acquisition of DR Solicitors in
November 2024. Following this acquisition, the Group's dependency on M&A
activity has reduced significantly in line with management expectations, with
M&A as a percentage of Network revenue at 32% in the Period, compared to
67% in H1 FY25.

 

Cash at the half year end was in line with management expectation
at £2.2m (30 September 2024: £2.3m), reflecting strong operating cash
conversion of 133% for the Period and a £1.0m repayment of the £3.0 million
OakNorth Bank revolving credit facility in June 2025, which was used to
partially fund the acquisition of DR Solicitors.

 

The Group's results are typically weighted towards the second half of the
financial year, due to the timing of profit share income recognition and
traditionally heightened activity ahead of the tax year-end.

 

Shru Morris, CEO of DSW Capital, said:

 

"Firstly, I would like to thank all our licensees for their continued
commitment to DSW and their contribution to a good set of results. We are
encouraged by the Group's performance in the first half of the year, which
demonstrates the resilience, scalability, and potential of our platform. The
integration of DR Solicitors is progressing well. We continue to experience
strong demand for our services across key sectors, with annual consultant
growth exceeding 30 per cent and the recruitment of a new Corporate Legal team
specialising in Dental and Pharmacy work.

 

"Whilst we, as a board, are ever mindful of the potential for market
disruption which may result from the current geo-political and economic
uncertainty, we are confident in the prospects for our businesses and our
strategy to build shareholder value over the long term. Our focus remains
firmly on driving sustainable growth, expanding our network of fee earners,
and delivering results for all our stakeholders. We look forward to providing
a full update on the Group's progress and ambitions at the Half Year Results
later this month."

 

Definitions:

 

Adjusted EBITDA - Adjusted EBITDA is defined as adjusted profit before tax
adjusted to add back impairment of loans due from associated undertakings,
finance costs, depreciation, amortisation and deduct finance income.

 

Adjusted profit before tax - Adjusted profit before tax which is defined as
profit before tax adjusted for items not considered part of underlying
trading, which in the current and prior period represents share based payments
and amortisation of intangible assets recognised on acquisition accounting, is
a non GAAP metric used by management and is not an IFRS disclosure.

 

Network Revenue - Network Revenue is defined as total revenue earned by
licensees and DR Solicitors, as opposed to total revenue reported by the
Company.

 

Total income - Statutory Revenue from DSW licensees and DR Solicitors plus
share of results of associates

 

Enquiries:

 

 DSW Capital                                                 Tel: +44 (0) 1928 378 100

 Shru Morris, CEO

 James Dow, Executive Director

 Pete Fendall, CFOO

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

 James Thomas/Mark Percy/George Payne (Corporate Advisory)

 Guy Wiehahn (Corporate Broking)

 Rawlings Financial PR Limited                               dswcapital@rfpr.co.uk (mailto:dswcapital@rfpr.co.uk)

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

 

About DSW Capital

 

DSW Capital, owner of the Dow Schofield Watts and DR Solicitors brands, is a
profitable, 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, Dow Schofield Watts is one of the
first platform models disrupting the traditional model of accounting
professional services firms. DSW Capital operates licensing arrangements with
its businesses and has over 140 Fee Earners across 12 offices in the UK. These
businesses trade primarily under the Dow Schofield Watts and DR Solicitors
brands.

 

DSW Capital's vision is for our brands to become the most sought-after
destinations for ambitious, entrepreneurial professionals to start and develop
their own businesses. Through a licensing model, DSW Capital gives
professionals the autonomy and flexibility to fulfil their potential.

 

Being part of the DSW Capital group brings support benefits in recruitment,
funding and infrastructure. DSW Capital's challenger model attracts
experienced, senior professionals, predominantly with a "Big 4" accounting
firm or "Magic Circle" legal background, who want to launch their own
businesses and recognise the value of DSW Capital's brands and the synergies
which come from being part of the network.

 

DSW Capital aims to scale its agile model through organic growth, geographical
expansion, additional service lines and acquisitions. The Directors are
targeting high margin, complementary, niche service lines with a strong
synergistic fit with the existing network.

 

 

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