REG - DSW Capital PLC - Trading Update & Notice of Results

DSW CapitalAnnouncement

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RNS Number : 4316E  DSW Capital PLC  15 May 2026

 

15 May 2026

DSW CAPITAL PLC

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

(AIM: DSW)

 

Trading Update and Notice of Results

 

Further to the statement issued on 16 March 2026, the board of DSW Capital, a
profitable, mid-market, challenger professional services licence network and
owner of the Dow Schofield Watts and DR Solicitors brands, today announces
further details of the Group's performance in the year ended 31 March 2026
("FY26" or the "Year").

 

Network Revenue is expected to be in line with revised expectations at £22.8m
(FY25: £25.8m). As previously announced, this includes a full year of DR
Solicitors, acquired in November 2024, which achieved double-digit growth of
c.11%, on an annualised basis. This growth, however, was partially offset by
lower M&A activity in the DSW Network. Total Income from Licensees for
FY26 is also expected to be in line with revised expectations at £6.3m (FY25:
£5.0m). Adjusted EBITDA is likely to be in line with revised market
expectations at c.£1.6m, with Adjusted Profit Before Tax of c.£1.4m.

 

Cash reserves remain strong, with cash of £2.0m and net cash of £0.2m at 31
March 2026. This follows a £1.0m repayment of the £3.0m Oak North Bank
revolving credit facility (fully drawn to help fund the acquisition of DR
Solicitors) and dividend payments totalling £0.8m across the Year. Operating
cashflow remains strong, with cash generated from operations of £1.8m, giving
an operating cash conversion of c.105%.

 

While the Iran war has had an impact on M&A activity and recruitment, the
Board remains confident in the Group's long-term prospects and continues to
invest in growth and further revenue diversification through the recruitment
of additional Fee Earners, expanding DR Solicitors' market share, and
appointing consultants capable of originating work for the newly established
DSW Legal division.

 

We have appointed a new Managing Director of DSW Legal and DR Solicitors,
James Mallender. James will spearhead the next phase of platform growth and
integration, to create a single, cohesive advisory platform under the DSW
brand.

 

Notice of Results

 

The Group's final results for FY26 are expected to be announced on 28 July
2026.

 

Shru Morris, Chief Executive Officer, said:

 

"Whilst it is frustrating that the robust performance achieved in the early
stages of FY26 stalled in the second half, the Board's strategic aim continues
to focus on growing the business and building a resilient and diversified
group of licensee businesses. The acquisition of DR Solicitors and its
subsequent growth, reducing the Group's dependency on M&A activity
significantly, demonstrates this strategy in action, with M&A in FY26
accounting for 34% of Total Income, down from 57% in FY25.

 

Our FY27 focus will be on attracting additional licensees and consultants,
driving new business at DR Solicitors, and launching DSW Legal. This new
platform will offer top legal talent an attractive alternative career path,
enabling them to build their own business under a recognised brand, supported
by back‑office services, strategic guidance and start-up funding,
replicating the success of our DSW licensee model.

 

 

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.

 

Operating Cash Conversion - Operating Cash Conversion is defined as cash
generated by operations divided by Adjusted EBITDA.

 

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

 Pete Fendall, CFOO

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

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

 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 130 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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