REG - DSW Capital PLC - Half Year Results
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RNS Number : 6107I DSW Capital PLC 24 November 2025
24 November 2025
HALF YEAR 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, is
pleased to announce its half year results for the six-month period ended 30
September 2025 ("H1 FY26" or the "Period"), delivering strong growth in
revenue and adjusted EBITDA, underpinned by continued expansion in fee earner
numbers, reinforcing its scalable platform model and long-term growth
strategy.
The Board is pleased to confirm that trading remained resilient and in line
with management expectations, reflecting the strength of our diversified
portfolio and ability to generate sustainable returns while investing for
future growth.
Financial 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
· Cash conversion was strong, with cash at 30 September 2025 of £2.2m after a
£1m loan repayment of the £3.0 million OakNorth Bank revolving credit
facility
· Strong balance sheet with net assets of £10.2m (FY25: £10.0m)
· Intention to maintain progressive dividend policy - interim dividend of 1.2p
per share declared, representing an increase on the prior year from 1.0p
Operational highlights
· Fee Earners up 29% YoY to 144 at the Period end (H1 25: 112), with 49 Partners
across 24 businesses supporting the continued revenue growth of the group
· Better balance of fee generation, with 32% weighted towards M&A in H1 FY26
(H1 25: 67%), following acquisition of DR Solicitors in November 2024
· New corporate legal team, specialising in dental and pharmacy, added to DR
Solicitors in October 2025
· Number of Fee Earners using the DR Solicitors platform increased to 26 at the
Period end, up from 20 on acquisition
· 36 award nominations across the Network and Dow Schofield Watts ranked as the
UK's 12th most active corporate finance advisor in H1 FY26, according to
Experian MarketIQ
· Head of Recruitment appointed in August 2025 to bring top talent to the DSW
platform
Current trading and outlook
· The Group's financial results are typically weighted towards the second half
of the year
· DSW Capital is now a more diversified and resilient business, with
significantly reduced reliance on M&A activity
· The business continues to trade well but the Board remains mindful of ongoing
geo-political and economic uncertainties, particularly regarding the
forthcoming Budget
· The Board remains firmly focused on:
- Driving sustainable growth
- Expanding the network of fee earners
- Delivering strong results for all stakeholders
Shru Morris, Chief Executive Officer, 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 has gone 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."
Online Investor Presentation
The management team will host an online H1 25 Results presentation on
Wednesday 26 November 2025 at 4.30pm. Anyone wishing to join the presentation
should register with Investor Meet Company at
https://www.investormeetcompany.com/dsw-capital-plc/register-investor
(https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.investormeetcompany.com%2Fdsw-capital-plc%2Fregister-investor&data=05%7C02%7CCat%40rfpr.co.uk%7Cd102066daee14084aaef08de28fd5673%7C380097a888be455d81c649770f277d04%7C0%7C0%7C638993265731455301%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=eDP0eZ6TQgM4hpM74iJqD59fS0tyDh2RCswY1VhBi00%3D&reserved=0)
.
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.
CHIEF EXECUTIVE OFFICER'S STATEMENT
I am pleased to report on the Group's results for six months to 30 September
2025. The first half of FY26 was a period of strong progress for DSW Capital.
Trading remained resilient and in line with management expectations, with the
Group delivering robust revenue growth, improved profitability, and
maintaining a strong balance sheet. Our strategic focus on the expansion of
legal services and the optimisation of our licensing model continues to
underpin our performance. The integration of DR Solicitors, acquired in
November 2024, has been a key driver of growth and diversification.
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).
Cash at the half year end was in line with management expectations
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 £3.0m
OakNorth Bank revolving credit facility in June 2025, which was obtained to
partially fund the acquisition of DR Solicitors.
These results are driven by the success of our excellent licensees and
colleagues and the Board thanks everyone for their resilience, hard work, and
commitment to DSW and the DR Solicitors brands.
To continue building and strengthening our business, we centred our
recruitment strategy in the Period on organic growth and the expansion of the
number of consultants on the DR Solicitors platform. We achieved annual
consultant growth of over 30% and, in October 2025, we successfully onboarded
a new Corporate Legal team specialising in dental and pharmacy law,
diversifying our healthcare offering and increasing our headcount.
Our priority remains the creation of shareholder value through sustained Fee
Earner growth, and our progress is clearly demonstrated below:
FY24 H1 FY25 FY25 H1 FY26
Partners 50 49 51 49
Employees 57 63 66 71
Consultants - - 19 24
Total Fee Earners 107 112 136 144
Vision and strategy
We are delivering on our vision to empower professionals to start and grow
their own businesses. Our strategy is to scale the Group through organic
growth, the addition of new service lines, and expansion of our geographic
footprint, complemented by selective acquisitions where there is a clear
strategic fit.
We operate in a large and growing mid-market professional services sector,
which presents significant opportunities to capture market share through our
differentiated, partner-led model.
Partner recruitment remains a strategic priority as traditional equity
partnership models in professional services face increasing pressures and
private equity continues to reshape the competitive landscape; an opportunity
DSW Capital is well positioned to seize. To accelerate this, we have
introduced our Pathway to Partner programme, a career-enhancing initiative
designed for senior professionals and Directors, enabling them to progress
rapidly towards partnership and hope to create a strong pipeline of future
leaders under the Dow Schofield Watts brand.
The number of Fee Earners in the Network is now 144, a 76% increase since our
IPO in December 2021. The acquisition of DR Solicitors has contributed
significantly to our progress and the integration of this business onto our
platform is going well.
The Group continues to experience strong demand across key service lines.
Annual consultant growth exceeded 30% and, in October 2025, we welcomed the
addition of a new Corporate legal team, specialising in dental and pharmacy
work, strengthening our healthcare legal offering.
Our ability to convert growth into profitability and cash generation
underscores the strength and scalability of business model. The acquisition of
DR Solicitors has broadened our service offering and strengthened our
platform, positioning us to capture a greater share of the mid-market
professional services sector. Building on this foundation, we are opening the
platform to consultants who bring their own client work and teams seeking to
establish their own businesses, creating new revenue streams and accelerating
growth through a more flexible approach to recruitment.
People
It is an honour to lead this business, as I have since April 2025, and to
succeed James Dow, Executive Director and Co-Founder of a pioneering brand
that supports entrepreneurship and offers a viable and distinguished
alternative for top-quality professionals in the UK.
From 1 January 2026, James will transition to the role of Non-Executive
Director. James has played a pivotal role in the firm's success since he
founded it and remains an outstanding ambassador for both DSW and the Pandea
Networks. I would like to express my sincere thanks to him for his unwavering
support and invaluable counsel, helping me succeed in my new role.
Dividend
We maintain a robust cash position with cash balances of £2.2m and the
Board is pleased to declare an interim dividend of 1.2p per share. The interim
dividend will be paid on 16 January 2026 to shareholders on the register
on 12 December 2025, with the shares going ex-dividend on 11 December 2025.
The year-on-year dividend increase underscores our confidence in the Group's
medium-term growth prospects and reinforces our commitment to delivering
sustainable returns through a progressive dividend policy.
Current trading and outlook
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 reduced significantly and 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.
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 M&A activity ahead of the tax year-end.
While mindful of geo-political and economic uncertainties, particularly around
the upcoming Budget, the Group remains financially strong, with robust cash
generation, a scalable model, and a limited fixed cost base. We remain
committed to delivering sustainable growth and long-term shareholder value and
confident in the Group's prospects over the long term.
Shru Morris
Chief Executive Officer
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six month period ended 30 September 2025
6 months ended 6 months ended
30 Sept 2025 30 Sept 2024
Note £'000 £'000
Continuing operations
Revenue 6 2,788 1,088
Cost of sales (601) -
Gross profit 2,187 1,088
Share of results of associates 8 9
Share of results of jointly controlled entity (3) 37
Administrative expenses (1,877) (1,144)
Operating profit / (loss) 315 (10)
Finance income 95 125
Finance costs (173) (14)
Profit before tax 237 101
Income tax (97) (35)
Profit for the half-year 140 66
Total comprehensive income attributable to owners of the Company 140 66
Earnings per share
From continuing operations
Basic 4 £0.006 £0.003
Diluted 4 £0.005 £0.003
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the six month period ended 30 September 2025
Note As at As at
30 Sept 2025 31 March 2025
£'000 £'000
Non-current assets
Intangible assets 6,760 6,952
Property, plant and equipment 243 297
Lease receivable 3 31
Investments 9 1,512 1,507
Investments in associates 9 80 182
Interests in jointly controlled entities 9 40 73
Prepayments and Accrued Income 10 728 744
9,366 9,786
Current assets
Trade receivables 10 1,200 1,354
Prepayments and Accrued Income 10 689 839
Other receivables 10 564 763
Lease receivable 53 50
Cash and bank balances 2,240 2,683
4,746 5,689
Total assets 14,112 15,475
Current liabilities
Trade payables 418 499
Other taxation 326 410
Other payables 44 71
Accruals and Deferred Income 320 553
Current tax liabilities 106 202
Lease liability 137 162
1,351 1,897
Net current assets 3,395 3,792
Non-current liabilities
Bank loan 1,824 2,771
Deferred tax provision 607 649
Lease liability 4 58
Dilapidation provision 87 85
2,522 3,563
Total liabilities 3,873 5,460
Net assets 10,239 10,015
Equity
Share capital 63 63
Share premium 5,268 5,268
Share-based payment reserve 510 575
Merger reserve 1,738 1,738
Retained earnings 2,660 2,371
Total Equity attributable to owners of the Company 10,239 10,015
The interim statements were approved and authorised for issue by the Board of
Directors on 21 November 2025 and were signed on its behalf by Pete Fendall,
Chief Finance and Operating Officer.
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six month period ended 30 September 2025
Share capital Share premium Share-based payments reserve Merger reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 April 2024 55 5,268 498 - 1,767 7,588
Profit for the half-year - - - - 66 66
Dividends - - - - (161) (161)
Share-based payments - - 52 - - 52
Issue of shares in period - - - - - -
Balance at 30 Sept 2024 55 5,268 550 - 1,672 7,545
Profit for the half-year - - - - 918 918
Dividends - - - - (246) (246)
Share-based payments - - 52 - - 52
Issue of shares in period 8 - - 1,738 - 1,746
Reserve transfer - - (27) - 27 -
Balance at 1 April 2025 63 5,268 575 1,738 2,371 10,015
Profit for the half-year - - - - 140 140
Dividends - - - - - -
Share-based payments - - 84 - - 84
Reserve transfer - - (149) - 149 -
Balance at 30 Sept 2025 63 5,268 510 1,738 2,660 10,239
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
For the six month period ended 30 September 2025
6 months ended 6 months ended
30 Sept 2025 30 Sept 2024
Note £'000 £'000
Profit for the half-year 140 66
Adjustments for:
Income tax expense 97 35
Net finance costs / (interest income) 78 (111)
Depreciation of property, plant and equipment 82 78
Amortisation of intangible assets 193 22
Share-based payment expense 84 52
Operating cash inflows before movements in working capital 674 142
Decrease / (Increase) in trade and other receivables 514 (215)
Decrease in trade and other payables (425) (166)
Decrease in amounts owed from associates and jointly controlled entities in 135 60
relation to profit share
Cash generated in / (used by) operations 898 (179)
Income taxes (paid) / received (236) 9
Net cash inflow / (outflow) from operating activities 662 (170)
Investing activities
Purchases of property, plant and equipment (27) (32)
Net cash used in investing activities (27) (32)
Financing activities
Loan financing repaid (1,000) -
Dividends paid 8 - (161)
Lease payments (87) (90)
Lease receivable amounts received 28 32
Interest (paid) / received (19) 120
Net cash used in financing activities (1,078) (99)
Net decrease in cash and cash equivalents (443) (301)
Cash and cash equivalents at beginning of half-year 2,683 2,632
Cash and cash equivalents at end of half-year 2,240 2,331
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL INFORMATION
1. General Information
DSW Capital plc, registered as a public company in England and Wales, with
registered number: 07200401. The principal activity of the Company and its
subsidiaries, DSW Services LLP, DSW Operations Limited and DR Solicitors
Limited (together referred to as the 'Group') is the licensing of the Dow
Schofield Watts and associated brand names for use in the professional
services sector, whilst providing legal services under the DR Solicitors brand
name.
The address of the Company's registered office is:
7400 Daresbury Park
Daresbury
Warrington
WA4 4BS
The interim condensed consolidated financial information is presented in
Pounds Sterling (£), which is the currency of the economic environment in
which the Group operates. All amounts are rounded to the nearest thousand
(£'000) except when noted.
2. Basis of preparation
This condensed consolidated interim financial information for the 6 months to
30 September 2025 has been prepared in accordance with IAS 34 'Interim
financial reporting' and also in accordance with the measurement and
recognition principles of UK adopted international accounting standards. It
does not include all of the information required for full annual financial
statements and should be read in conjunction with the Annual Report and
Accounts for the year ended 31 March 2025. A copy of the statutory accounts
for that year has been delivered to the Registrar of Companies. The auditors
reported on those accounts: their report was unqualified, did not draw
attention to any matters by way of emphasis and did not contain a statement
under section 498 (2) or (3) of the Companies Act 2006. This condensed
consolidated interim financial information does not comprise statutory
accounts within the meaning of section 434 of the Companies Act 2006. The
Interim Report has not been audited or reviewed in accordance with the
International Standard on Review Engagement 2410 issued by the Auditing
Practices Board.
Significant Accounting Policies
The accounting policies used in the preparation of the interim financial
information for the six months ended 30 September 2025 are in accordance with
the recognition and measurement criteria of UK Adopted International
Accounting Standards and are consistent with those which were adopted in the
annual statutory financial statements for the year ending 31 March 2025.
Use of estimates and judgements
There have been no material revisions to the nature of estimates and
judgements of amounts reported in prior periods.
Going concern
The interim financial information has been prepared on a going concern basis
as the Directors have reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future.
In considering the appropriateness of the going concern basis of preparation,
the Directors have considered the cash balance and the forecasts for the next
twelve months following the date of this report, which includes detailed cash
flow forecasts and working capital availability. These forecasts show that
sufficient resources remain available to the business for the foreseeable
future in order to meet its operational and financial obligations as they fall
due.
The Group has a significant cash balance of £2.2m, has a model which is
strongly cash generative and a limited fixed cost base. At 30 September 2025,
the Group has net assets of £10.2m (March 2025: £10.0m) and net current
assets of £3.4m (March 2025: £3.8m) which reflects the strong financial
position for the Group. In addition, the Group is profitable with adjusted
EBITDA of £0.7m in the 6-month period to 30 September 2025.
The Group has prepared detailed cash flow forecasts and stress-tested various
scenarios, all of which indicate that the Group will maintain adequate
liquidity throughout the forecast period. Furthermore, the Group remains in
full compliance with all financial covenants associated with its borrowing
facilities. Based on current forecasts and financial performance, management
expects to continue to meet these covenants for the foreseeable future.
Accounting Developments
In the current year, the Group has applied a number of amendments to IFRS
accounting standards issued by the International Accounting Standards Board
(IASB) that are mandatorily effective for an accounting period that begins on
or after 1 January 2025. Their adoption has not had any material impact on the
disclosures or on the amounts reported in these financial statements.
Amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates
3. Adjusted PBT
Adjusted PBT is utilised as a key performance indication for the Group and is
calculated as follows:
Six months ended Six months ended
30 September 2025 30 September 2024
£'000 £'000
Profit before tax 237 101
Share based payments 84 52
Amortisation of intangible assets recognised on acquisition accounting 172 142
Adjusted PBT 493 295
4. Earnings per share
From continuing operations
The calculation of the basic and diluted earnings per share is based on the
following data:
Six months ended 30 September 2025 Six months ended 30 September 2024
Earnings £'000 £'000
Earnings for the purposes of basic earnings per share being net profit 140 66
attributable to owners of the Company
Effect of dilutive potential ordinary shares: - -
Earnings for the purposes of diluted earnings per share 140 66
Six months ended 30 September 2025 Six months ended 30 September 2024
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings 25,131,108 21,414,175
per share
Effect of dilutive potential ordinary shares:
Shares held in EBT 402,895 512,185
Weighted average number of ordinary shares for the purposes of diluted 25,534,003 21,926,360
earnings per share
From continuing operations
Six months ended 30 September 2025 Six months ended 30 September 2024
Earnings £ £
Basic earnings per share 0.006 0.003
Diluted earnings per share 0.005 0.003
Adjusted earnings per share is included as an Alternative Performance Measure
('APM') and is not presented in accordance with IAS 33. It has been calculated
using adjusted earnings calculated as profit after tax but before:
· Share-based payments expense
The calculation of adjusted basic and adjusted diluted earnings per share is
based on:
Six months ended 30 September 2025 Six months ended 30 September 2024
£'000 £'000
Profit after tax on continuing operations 140 66
Adjusted for:
Share-based payment expense 84 52
Amortisation of intangible assets recognised on acquisition accounting 172 142
Adjusted earnings for the purposes of adjusted basic and adjusted diluted 396 260
earnings per share
Six months ended 30 September 2025 Six months ended 30 September 2024
Earnings £ £
Adjusted basic earnings per share 0.016 0.012
Adjusted diluted earnings per share 0.016 0.012
Shares held in trust are issued shares that are owned by the Group's employee
benefit trusts for future issue to employees as part of share incentive
schemes. The future exercise of the share awards and options is the dilutive
effect of share awards granted to employees that have not yet vested, and
shares held by the group's employee benefit trust.
Shares held in trust are deducted from the weighted average number of shares
for basic earnings per share. For its adjusted basic measure, the Group uses
the weighted average number of ordinary shares.
5.Profit for the year
Profit for the year has been arrived at after charging/(crediting):
Six months ended 30 September 2025 Six months ended 30 September 2024
£'000 £'000
Depreciation of property, plant and equipment 82 78
Amortisation 193 22
Employee pension 11 5
Expected credit loss - licence fees - 7
Expected credit loss - outstanding loans - -
Expected credit loss - profit share - (7)
6. Revenue
The disclosure of revenue by product line is consistent with the revenue
information that is disclosed for each reportable segment under IFRS 8.
Disaggregation of revenue
Six months ended 30 September 2025 Six months ended 30 September 2024
£'000 £'000
External revenue by product line
Licence Fee Income 1,259 1,081
Profit Share Income 1 7
Legal Fee Income 1,528 -
Total Revenue 2,788 1,088
A further breakdown of revenue by reporting line is shown below:
Six months ended 30 September 2025 Six months ended 30 September 2024
£'000 £'000
External revenue by reporting line
Licence fees attributable to Mergers & Acquisitions (M&A) 892 722
Licence fees attributable to Other 367 359
Profit share attributable to M&A 1 7
Legal fee income 1,528 -
Total Revenue 2,788 1,088
7. Taxation
Tax for the period is charged at 25% (6 months ended 30 September 2024: 25%;
year ended 31 March 2025: 25%), representing the best estimate of the average
annual effective tax rate expected for the full year, applied to the pre-tax
income of the 6 month period.
8. Dividends
The final ordinary dividend for the year ended 31 March 2025 of £0.02 per
share, as proposed in the 31 March 2025 financial statements and approved at
the Group's AGM was paid on 1 October 2025.
In addition, since the end of the half-year the Directors have recommended the
payment of an interim dividend of 1.20 pence per fully paid ordinary share.
The proposed interim dividend was approved by the Board on 21 November 2025.
The dividend will be paid on 16 January 2026 to shareholders on the register
on 12 December 2025 with the shares going ex-dividend on 11 December 2025.
(ISIN: GB00BNG9H550 and TIDM: DSW.)
In accordance with IAS10 "Events after the Balance Sheet Date", these
dividends have not been reflected in the Interim Report.
9. Investments
Group Group
As at 30 September 2025 As at 31 March 2025
£'000 £'000
Investment in Associates 80 182
Investment in jointly controlled entities 40 73
Other investments 1,512 1,507
Total Investments 1,632 1,762
The movement in Investment in Associates and Investments in jointly controlled
entities is included in the cashflow statement as an increase in amounts owed
from associates.
Where long-term loans are made to licensees, which are disclosed within "Other
investments" above, the Directors of the Company have accounted for them as
investments under IFRS 9. These loans are accounted for using the amortised
cost method.
10. Trade and other receivables
Group Group
As at 30 September 2025 As at 31 March 2025
£'000 £'000
Trade receivables 1,380 1,534
Loss allowance (180) (180)
1,200 1,354
Other receivables 993 1,192
Loss Allowance (429) (429)
564 763
Prepayments and Accrued Income 1,430 1,596
Loss Allowance (13) (13)
1,417 1,583
3,181 3,700
Included in prepayments and accrued income are contract assets amounting to
£721k (March 2025: £733k) due in greater than one year.
Other receivables are made up from loans due from licensees, and prepayments
and accrued income relates to profit share due from licensees and contract
assets. Amounts due from subsidiary undertakings, in other receivables on the
company statement of financial position, are interest free and repayable on
demand and have been classified as due in greater than one year.
Contract Assets
Amounts relating to contract assets, which are disclosed within prepayments
and accrued income above, are balances that can be classified as incremental
costs of obtaining a revenue contract. These include the breakout incentives
which provide businesses with an initial free-cash injection, as well as the
below-market element of loans offered to licensee businesses.
Amortisation is recognised on a straight-line basis over the life of the
contract. The average remaining length of contract to which these assets
relate is 20.5 years. In the period ended 30 September 2025, amortisation
amounting to £7k was recognised within admin expenses (year ended 31 March
2025: £49k was recognised in admin expenses).
As at 30 September 2025 As at 31 March 2025
£'000 £'000
Contract assets
Breakout Incentives 323 330
Below Market Element of Loans to Licensees 422 428
745 758
Current 24 25
Non-Current 721 733
Total Contract assets 745 758
11. Related party transactions
Balances and transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation and are not disclosed
in this note. Transactions between the Group and its related parties are
disclosed below.
Related parties are those licensees where the Company is a member of the
related LLP.
Revenue and Cost Recharges
Group entities entered into the following transactions with related parties
who are not members of the Group. All entities other than DSW Investments 2
LLP are licensee businesses. DSW Investments 2 LLP is an entity owned by
current shareholders.
Six months ended 30 September 2025 Six months ended 30 September 2024
Revenue and Cost Recharges Revenue and Cost Recharges
£'000 £'000
PHD Industrial Holdings 58 104
DSW Investments 2 LLP (56) (54)
Other investments 286 354
Totals 288 404
Other investments relate to routine and similar transactions which arose in
the ordinary course of business, with DSW CF Leeds, DSW TS Leeds and DSW
Business Recovery.
Amounts due from/to related parties
Group entities had the following balances, including loans to related parties,
outstanding at period end with related parties who are not members of the
Group:
30 September 2025 30 September 2024
Amounts due from/(to) related parties Amounts due from/(to) related parties
£'000 £'000
PHD Industrial Holdings - 15
DSW Investments 2 LLP (33) (36)
Other investments 173 195
Totals 140 174
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. END IR PKDBKOBDDKDB
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