REG - DSW Capital PLC - Trademark Licence Agreement Update

DSW CapitalAnnouncement

17/05/2023 07:00

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RNS Number : 6393Z  DSW Capital PLC  17 May 2023

 

17 May 2023

DSW CAPITAL PLC

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

(AIM:DSW)

 

Trademark Licence Agreement Update

 

DSW Capital, a profitable mid-market, challenger professional services licence
network and owner of Dow Schofield Watts brand, has entered into an updated
Trademark Licence Agreement (the "Agreement") with one of its licensees', PHD
Industrial Holdings Limited ("PHD IH"). Under the Agreement, which replaces an
existing trademark licence agreement, PHD IH, will continue to pay a fixed
licence fee of £144k p.a. payable quarterly in arrears. There is also a
service contract in place whereby central costs are recharged on a per head
basis (c.£48k p.a.), known as a "desk charge", that will continue to be paid.

 

The Agreement shall be for a fixed period expiring on 31 December 2024.
Furthermore, PHD IH will have the right to acquire the trademark "PHD
Industrial Holdings" from the Group for a payment of £1 after the expiration
of the Agreement.

 

James Dow, CEO of the DSW Capital is a director of PHD IH and together with
other directors of PHD IH owns a combined shareholding of greater than 30% of
PHD IH. PHD IH is, therefore, a related party as defined in the AIM Rules.
Accordingly, the Agreement is classed as a related party transaction pursuant
to Rule 13 of the AIM Rules for Companies.

 

The independent directors of the Group for the purposes of this transaction,
being all directors other than James Dow, having consulted with the Group's
nominated adviser, Shore Capital, consider the terms of the Agreement to be
fair and reasonable insofar as the Group's shareholders are concerned.

 

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 / 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

 

Notes to Editors 

 

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 now
operates licensing arrangements with 20 licensee businesses with 97 fee
earners ("FEs"), across seven 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.

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