REG - DSW Capital PLC - New Licence and Corporate Recovery Service Line

DSW CapitalAnnouncement

13/07/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230713:nRSM8567Fa&default-theme=true

RNS Number : 8567F  DSW Capital PLC  13 July 2023

13 July 2023

DSW CAPITAL PLC

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

(AIM: DSW)

 

New Licence and Corporate Recovery Service Line

DSW supports the MBO of Bridgewood Financial and takes its Fee Earners to 107

 

DSW Capital, a profitable, mid-market, challenger professional services
licence network and owner of the Dow Schofield Watts brand, is pleased to
announce that it has provided loans totalling £880,000, of which £100,000
will be a working capital loan, to support the MBO of Bridgewood Financial
Solutions Ltd ("Bridgewood"), a corporate recovery business, with 10 Fee
Earners, based in Nottingham. This deal takes the Group's total licensees to
23 and its Fee Earners to 107.

 

Bridgewood will become part of the DSW Network, rebranding as DSW Bridgewood,
and DSW Capital will receive licence fee income for the use of the DSW
brand.

 

As licensor, DSW will receive interest income, a licence fee (based on a
percentage of DSW Bridgewood revenue) and a share of its profits. The minimum
contracted return from DSW Bridgewood is £130k in each of the first three
years following completion.

 

In addition to the 10 new Fee Earners, including three partners, the business
brings a further four business development managers.

 

James Dow, Chief Executive Officer, said:

 

"I am delighted to welcome the Bridgewood team to the DSW network. The
transaction broadens and strengthens DSW's counter-cyclical offering and gives
the Group its first office in the Midlands, which will help to raise the Dow
Schofield Watts profile in that region, increasing the likelihood of further
Fee Earners joining the Network.

 

"Expanding into the Midlands has been a key area of focus for the Group and
the Directors are keen to develop other service lines here. Having an
existing team in this location provides a platform to accelerate growth in the
region, and will be a focus for recruitment, which is already connecting us
with promising candidates to expand our offering in the region."

 

Robin Tarling, Managing Director, Bridgewood Financial said;

 

"The buy-out is an ideal scenario for all concerned. It enables our two other
partners, Andrew Smith and Tom Grummitt, who are key members of the leadership
team, to take a stake in the business and gives us the autonomy to pursue our
growth plans going forward, while providing a return for our seed investors.

 

"Being part of the Dow Schofield Watt network will also give us access to a
strong support team and bring opportunities to expand our services, including
into other types of advisory work and commercial financial broking.

 

"It has been a smooth, timely and seamless process with DSW. They have been
responsive, quick to understand our business model, and their emphasis on
strong cultural synergies was critical in informing our decision to join the
network."

 

For further information please contact:

 

 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 / Mark Percy / Rachel Goldstein

 Guy Wiehahn / Isobel Jones (Corporate Broking)

 Belvedere Communications

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

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

                                                  dsw@belvederepr.com
                                                  (https://url.avanan.click/v2/___mailto:dswcapital@belvederepr.com___.YXAxZTpzaG9yZWNhcDphOm86Yjc0Nzc1ZDRhNmI2ZDQ3ODRiMTU2MDJlZmUzYWIyOWE6NjpiM2UzOjNlNDFhZjMzOTc3YTA5ZmIzMjJlN2ExNDJmOTg4MGVjYWZhNzZkYmI3ZGY2YTQxYzA1YWZlYWI2NjhhYmZjMTg6cDpU)

 

About DSW Capital

 

DSW Capital, owner of the Dow Schofield Watts brand, 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, DSW is one of the first platform models disrupting
the traditional model of accounting professional services firms. DSW operates
licensing arrangements with 23 licensee businesses with 107 fee earners,
across eight offices in England and two 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.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQNKBBKCBKDAOD