TIDMDSW
RNS Number : 6526U
DSW Capital PLC
27 November 2023
27 November 2023
DSW CAPITAL PLC
("DSW Capital", "DSW" or the "Group")
(AIM:DSW)
Half Year Results
Resilient performance with M&A activity levels returning
towards more normal levels
DSW Capital, a profitable, mid-market, challenger professional
services licence network and owner of the Dow Schofield Watts
brand, is pleased to announce its half year results for the
six-month period ended 30 September 2023 ("H1 24" or the
"Period").
The Group delivered a resilient performance in H1 24, under
challenging market conditions which dominated trading in the first
four months of the Period. The Group's licensees reported a return
towards more normalised levels of M&A activity over the last
two months of the Period, with activity levels continuing to
improve post Period end, suggesting that the low point in the cycle
may have passed.
Financial highlights
-- Network Revenue 25.3% lower at GBP7.3m (H1 23: GBP9.8m),
reflecting subdued M&A activity
-- Total income from licensees was 30.9% lower at GBP1.1m (H1
23: GBP1.6m)
-- Adjusted Pre-Tax Profit reduced to GBP0.2m (H1 23: GBP0.9m),
after increased investment of GBP0.2m to capitalise on increasingly
favourable recruitment conditions
-- Statutory Loss before tax of GBP0.1m (H1 23: GBP0.6m Profit)
-- Cash of GBP2.8m (FY23: GBP4.6m), after the investment of
GBP0.9m in Bridgewood, dividend payment of GBP0.4m and breakout
incentives of GBP0.2m to new partners
-- Net cash used by operations of GBP0.3m, comprising start
up loans and working capital support provided to new licensees.
Lock up remains low at 33 days (FY23: 27 days), contributing
to a strong balance sheet with Net Assets of GBP7.6m (FY23:
GBP7.9m)
-- Interim dividend of 1.25p per share, representing one third
of the intended full year dividend (FY23: 3.76p). We intend
to maintain our progressive dividend policy.
Operational highlights
-- Fee Earners increased to 104 at the Period end (H1 23: 93),
up 11.8% YoY, with Partner numbers increasing 20% from 40
to 48
-- An additional Corporate Recovery licensee was added in July,
with DSW supporting the MBO of Bridgewood
-- Tax advisory capabilities, a target for the Group, were
expanded through supporting DSW Tax Advisory's acquisition
of STS Europe
-- A new geographic location and office in Leicester was added
during the Period with a Corporate Finance team joining
the Network under the Breakout Initiative
-- Since the Period end, a further geographic location has
been added under the Breakout Incentive, which targets existing
teams in larger firms, with the launch of a new Corporate
Finance business in Cardiff
-- Whilst deal volumes have decreased on the prior period (named
by Experian* as the 20(th) most active corporate finance
adviser in the UK in the first half of 2023, compared to
10(th) in the first half of 2022), average deal values across
Corporate Finance and Financial Due Diligence have increased
from GBP8m to GBP14m, reflecting the growing strength and
profile of the brand
* Experian Market IQ: H1 2023 Report
Current trading and outlook
-- Adjusted Pre-Tax Profit in FY24 expected to be between GBP1.1m
to GBP1.4m - higher end achievable subject to certain M&A
deals completing before the year end
-- A further geographic location has been added under the Breakout
Incentive, which extracts existing teams from larger firms,
with the launch of a new Corporate Finance business in Cardiff
in October 2023
-- Three new partners have joined the business, since the Period
end, taking the current total to 51
-- DSW Network well positioned to benefit from returning M&A
activity levels, which continue to recover
-- Early results of recruitment investment are positive - the
increase in partners is expected to drive organic fee earner
growth
-- The Board is confident in the Group's growth strategy and
continues to invest in the long-term future of the Network
James Dow, Chief Executive Officer, said:
"We will continue to seek to grow the business, through
diversification with the addition and expansion of new service
lines, to improve its resilience and reduce its dependence on
corporate finance and due diligence.
"During this favourable time for recruitment, our ongoing
investment has delivered three new offices to the Network and
expanded our corporate recovery and tax service lines, as well as
increasing Partner numbers from 40 to 51. Partner numbers are a
lead indicator of future organic Fee Earner growth.
"We will continue to invest in the long-term profitable growth
of the business and the delivery of strong returns for all our
stakeholders."
Definitions:
Adjusted Pre-Tax Profit - Adjusted operating profit, which is
defined as operating profit adjusted for items not considered part
of underlying trading, which in the current and prior period
represents share-based payments, 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, as opposed to total revenue reported by the
Company
Total income from licensees - Total income from licensees
represents statutory revenue plus share of results in
associates
Lock up - Defined as licence fee and profit share debtors as a
proportion of Network Revenue
Enquiries:
DSW Capital
James Dow, Chief Executive Officer Tel: +44 (0) 1928
Nicole Burstow, Deputy CEO 378 029
Tel: +44 (0) 1928
378 039
Shore Capital (Nominated Adviser & Broker) Tel: +44 (0)20 7408
James Thomas / Mark Percy / Rachel Goldstein 4090
Guy Wiehahn / Isobel Jones (Corporate Broking)
Belvedere Communications
Cat Valentine Tel: +44 (0) 7715
Keeley Clarke 769 078
Tel: +44 (0) 7967
816 525
dsw@belvederepr.com
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 25 licensee businesses with 106 fee
earners, from 12 offices across the UK. 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.
Chief Executive Officer's Statement
I am pleased to report that the Group continued to make progress
on its strategic growth plans, despite the challenging market
conditions encountered in the first four months of the Period,
which impacted our overall trading performance in H1 24.
I am encouraged that our licensees reported more normalised
levels of M&A activity in the three months to 31 October 2023,
which suggests that we may have passed the low point in the cycle.
We expect that M&A activity will continue to recover in the
second half and that the Group is likely to achieve Adjusted
Pre-Tax Profit between GBP1.1m to GBP1.4m in FY24.
The Board would like to thank all our Licensee Partners and
Employees for their hard work and commitment to the DSW brand.
Network Revenue in the Period was GBP7.3m, compared to GBP9.8m
in H1 23. This resulted in a decrease in Total Income from
Licensees in the Period to GBP1.1m (H1 23: GBP1.6m) and a
consequent reduction in Adjusted Pre-Tax Profit to GBP0.2m (H1 23:
GBP0.9m). The decline in profitability also reflects the
significant investment (GBP0.2m) made into recruitment in the
Period, to enable us to capitalise on the increasingly favourable
recruitment conditions.
The Group's cash at the half year end was in line with
management expectation at GBP2.8m (FY23: GBP4.6m), reflecting the
investment of GBP0.9m in Bridgewood, the dividend payment of
GBP0.4m and breakout incentives paid to new partners of
GBP0.2m.
We have continued to strengthen our central infrastructure and
support offering in the Period, with greater training and
development opportunities for partners and employees, the launch of
our ESG Committee and improving our IT capabilities to create
greater working efficiencies for our teams. Continually improving
and enhancing our service offering increases the attractiveness of
the Network to new recruits, adds to the value we provide to our
existing licensees and enables us to retain them.
Vision and strategy
DSW Capital is the owner of the Dow Schofield Watts brand, which
is the predominant brand it licences to licensee businesses. Our
vision is to become the most sought-after destination for
ambitious, entrepreneurial professionals to start and develop their
own businesses. We aim to scale the business through organic
growth, new service lines and geographic locations, and investing
in "Break Outs", which extracts existing teams from larger
firms.
We further executed on our strategy in the Period. Fee Earners
within our 25 licensed businesses rose to 104, compared with 93 at
H1 23, as the Group benefitted from the significant investment in
its recruitment resources. We have increased the number of Fee
Earners in the Network by 22, or 26.8%, since IPO in December
2021.
The growth in Fee Earners in H1 24 centred on partners, with a
new office being launched in Leicester, which was supported by our
acquisitions of licensee fee income. Organic recruitment was
hampered, as the more demanding trading conditions meant our
partners were, understandably, less inclined to recruit
replacements for their leavers. Our attrition levels, however,
remain low at 12% for the last 12 months. Of our 104 Fee Earners at
H1 24, 48 were partners, compared to 40 in the prior year period.
This 20% growth in partners is a lead indicator for future organic
Fee Earner growth and subsequent organic recruitment.
The Group remains committed to the acquisition of licence fees
and further diversification, through the broadening of its service
lines. We are in constant dialogue to encourage teams to join DSW
and successfully added Bridgewood (Corporate Recovery) and STS
Europe (Tax Advisory) in the Period. We are confident that our
efforts will continue to bear fruit.
People
After the Period end, on 11 October 2023, Nicole Burstow, our
Chief Financial Officer ("CFO") was appointed as Deputy Chief
Executive Officer. We are extremely fortunate to have such a
capable and committed executive, she is well respected by all our
stakeholders, and this appointment reflects that her contribution
to the Group has extended far beyond her role for quite some time.
Nicole will continue to fulfil her responsibilities as CFO.
Dividend
We maintain a robust cash position with cash balances of GBP2.8
million and are pleased to declare an interim dividend of 1.25p per
share. The interim dividend will be paid on 12 January 2024 to
shareholders on the register on 15 December 2023 with the shares
going ex-dividend on 14 December 2023.
The Board intends to maintain the total dividend payable for the
year at 3.76p (FY23: 3.76p). In line with the Group's stated
dividend policy, one third will be paid at the interim. The
maintenance of the dividend at last year's level demonstrates our
confidence in the medium-term prospects of the Group and we intend
to maintain our progressive dividend policy.
Current trading and outlook
Our results are typically weighted towards the second half of
the financial year, due to the recognition of profit share income.
This year is no exception. The Group will benefit from the
contribution from Bridgewood, which joined the Network in July
2023, in the second half, and also from an expected improvement in
M&A activity. Whilst M&A activity levels are improving,
this market represents a sizeable percentage of Group revenues (H1
24: 73%, H1 23: 73%) and the timing of transactions can change. As
such, the Board expects to achieve an Adjusted Pre-Tax Profit in
FY24 of between GBP1.1m to GBP1.4m. The higher end of this range
remains achievable but is subject to the successful completion of
certain M&A deals currently scheduled to complete before the
year end.
The Board was cautious at the start of the year and remains
vigilant to macro uncertainties. We are pleased with the strategic
progress being made and continue to seek opportunities to grow the
business through licensee growth and diversification, with the
addition and expansion of new service lines, to improve its
resilience. Since the Period end, we have launched a new Corporate
Finance business, based in Cardiff, focused on Wales and the
South-West, which has added an additional two partners. A further
Partner has also joined the DSW Ventures team post Period end,
taking our Partner numbers to 51.
With a strong cash balance (GBP2.8m) and a robust Balance Sheet
(Net Assets of GBP7.6m), we remain well-resourced to execute our
strategy. The strategic progress to date has laid the foundations
for future growth and the Board is confident in the medium-term
outlook for the Group.
James Dow
Chief Executive Officer,
27 November 2023
Interim consolidated statement of comprehensive income
For the six month period ended 30 September 2023
6 months ended 30 Sept 2023 6 months ended 30 Sept 2022
Note GBP'000 GBP'000
Continuing operations
Revenue 5 1,108 1,509
Gross profit 1,108 1,509
Share of results of associates 20 124
Share of results of jointly controlled entity 45 -
Administrative expenses (1,331) (1,075)
Operating (loss) / profit (158) 558
Adjusted operating profit (1) 95 872
Share based payments expense (253) (314)
------------------------------------------------- ----- ---------------------------- ----------------------------
Operating (loss) / profit (158) 558
Finance income 109 43
Impairment of loans due from associated 2 -
undertakings
Finance costs (16) (13)
(Loss) / Profit before tax (63) 588
Adjusted Profit before tax (2) 190 902
Share based payments expense (253) (314)
------------------------------------------------- ----- ---------------------------- ----------------------------
(Loss) / Profit before tax (63) 588
Income tax (40) (170)
(Loss) / Profit for the half-year (103) 418
Total comprehensive (expenditure) / income for
the half-year attributable to owners of the
Company (103) 418
---------------------------- ----------------------------
(Loss) / Earnings per share
From continuing operations
Basic 3 (GBP0.005) GBP0.020
Diluted 3 (GBP0.005) GBP0.020
---------------------------- ----------------------------
(1) Adjusted operating profit, which is defined as operating
profit adjusted for items not considered part of underlying
trading, which in the current and prior period represents share
based payments, is a non GAAP metric used by management and is not
an IFRS disclosure.
(2) 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, is a non GAAP metric used by management and is not
an IFRS disclosure.
Interim consolidated statement of financial position
For the six month period ended 30 September 2023
Note As at 30 Sept 2023 As at 31 March 2023
GBP'000 GBP'000
Non-current assets
Intangible assets 725 748
Property, plant and equipment 387 440
Investments 7 1,422 922
Investments in associates 7 132 209
Interests in jointly controlled entities 7 30 39
Prepayments and Accrued Income 8 631 166
Deferred Tax asset 9 9
------------------- --------------------
3,336 2,533
------------------- --------------------
Current assets
Trade receivables 8 1,077 924
Prepayments and Accrued Income 8 311 350
Other receivables 8 834 567
Cash and bank balances 2,817 4,584
5,039 6,425
Total assets 8,375 8,958
------------------- --------------------
Current liabilities
Trade payables 86 162
Other taxation 146 211
Other payables 101 76
Accruals and Deferred Income 63 133
Current tax liabilities 16 95
Lease liability 93 91
------------------- --------------------
505 768
------------------- --------------------
Net current assets 4,534 5,657
------------------- --------------------
Non-current liabilities
Lease liability 173 220
Dilapidation provision 77 75
250 295
------------------- --------------------
Total liabilities 755 1,063
Net assets 7,620 7,895
Equity
Share capital 55 55
Share premium 5,268 5,271
Share-based payment reserve 2,121 1,868
Retained earnings 176 701
Total Equity attributable to owners of the Company 7,620 7,895
The interim statements were approved and authorised for issue by
the Board of Directors on 24 November 2023 and were signed on its
behalf by James Dow, Chief Executive Officer.
Interim consolidated statement of changes in equity
For the six month period ended 30 September 2023
Share capital Share premium Share-based payments Retained earnings Total equity
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- -------------- ------------------------ ------------------ -------------
Balance at 1 April 2022 54 5,280 1,174 1,477 7,985
-------------- -------------- ------------------------ ------------------ -------------
Profit for the half-year - - - 418 418
Dividends - - - (890) (890)
Share-based payments - - 314 - 314
Issue of shares in
period 1 - - - 1
-------------- -------------- ------------------------ ------------------ -------------
Balance at 30 Sept 2022 55 5,280 1,488 1,005 7,828
-------------- -------------- ------------------------ ------------------ -------------
Profit for the half-year - - - 67 67
Dividends - - - (371) (371)
Share-based payments - - 380 - 380
Issue of shares in
period - (9) - - (9)
-------------- -------------- ------------------------ ------------------ -------------
Balance at 1 April 2023 55 5,271 1,868 701 7,895
-------------- -------------- ------------------------ ------------------ -------------
Loss for the half-year - - - (103) (103)
Dividends - - - (422) (422)
Share-based payments - - 253 - 253
Issue of shares in
period - (3) - - (3)
-------------- -------------- ------------------------ ------------------ -------------
Balance at 30 Sept 2023 55 5,268 2,121 176 7,620
-------------- -------------- ------------------------ ------------------ -------------
Interim consolidated statement of cash flows
For the six month period ended 30 September 2023
6 months ended 30 Sept 2023 6 months ended 30 Sept 2022
Note GBP'000 GBP'000
(Loss) / Profit for the half-year (103) 418
Adjustments for:
Income tax expense 40 170
Net interest income (93) (30)
Depreciation of property, plant and
equipment 70 69
Amortisation of intangible assets 24 23
Bonus shares / LTIP awards - 1
Impairment of loans due from associated (2) -
undertakings
Share-based payment expense 253 314
Operating cash flows before movements in working
capital 189 965
Increase in trade and other receivables (326) (171)
Decrease in trade and other payables (186) (68)
Decrease in amounts owed from associates and
jointly controlled entities in relation to
profit
share 47 95
Cash (used by) / generated by operations (276) 821
Income taxes paid (120) (63)
---------------------------- ----------------------------
Net cash (outflow) / inflow from operating
activities (396) 758
---------------------------- ----------------------------
Investing activities
Purchases of property, plant and equipment (16) (14)
Investments made in period 7 (986) -
Net cash used in investing activities (1,002) (14)
---------------------------- ----------------------------
Financing activities
Dividends paid 6 (422) (890)
Finance lease payments (53) (51)
Interest received 109 42
Costs of issue of ordinary shares (3) -
Net cash used in financing activities (369) (899)
----------------------------
Net decrease in cash and cash equivalents (1,767) (155)
Cash and cash equivalents at beginning of
half-year 4,584 4,722
Cash and cash equivalents at end of half-year 2,817 4,567
---------------------------- ----------------------------
Notes to the interim consolidated financial information
1. General Information
The Company was incorporated as DSW Capital Limited on 23 March
2010 under the Companies Act 2006 (Registration number: 07200401).
The Company was re-registered as DSW Capital plc on 26 October
2021. The Company is incorporated and domiciled in England and
Wales. The principal activity of the Company and its subsidiaries,
DSW Services LLP and Dow Schofield Watts Operations Limited
(together referred to as the 'Group') is the licensing of the Dow
Schofield Watts brand and associated brand names for use in the
professional services sector.
The address of the Company's registered office is:
7400 Daresbury Park
Daresbury
Warrington
WA4 4BS
2. Basis of preparation
This condensed consolidated interim financial information for
the 6 months to 30 September 2023 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 2023. 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.
The interim condensed consolidated financial information is
presented in the Group's functional currency of Pounds Sterling and
all values are rounded to the nearest thousand (GBP'000) except
when otherwise indicated.
Significant Accounting Policies
The accounting policies used in the preparation of the interim
financial information for the six months ended 30 September 2023
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 2023.
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. The Group has no debt and GBP2.8m cash
at 30 September 2023. The Group's forecasts and projections show
that the Group has sufficient resources for both current and
anticipated cash requirements.
Accounting Developments
There have been no new standards or interpretations, relevant to
the Group's operations, applied in the interim financial
information.
Adjusted PBT
Adjusted PBT is utilised as a key performance indication for the
Group and is calculated as follows:
Six months Six months
ended ended
30 September 30 September
2023 2022
GBP'000 GBP'000
(Loss) / Profit before tax (63) 588
Share based payments 253 314
Adjusted PBT 190 902
-------------- --------------
3. Earnings per share
From continuing operations
The calculation of the basic and diluted earnings per share is
based on the following data:
Six months Six months
ended 30 September ended 30 September
2023 2022
Earnings GBP'000 GBP'000
Earnings for the purposes of basic
earnings per share being net profit
attributable to owners of the Company (103) 418
Effect of dilutive potential ordinary - -
shares:
Earnings for the purposes of diluted
earnings per share (103) 418
Six months Six months
ended 30 September ended 30 September
2023 2022
Number of shares
Weighted average number of ordinary
shares for the purposes of basic
earnings per share 21,086,175 21,065,045
Effect of dilutive potential ordinary
shares:
Share Options 840,185 509,629
Weighted average number of ordinary
shares for the purposes of diluted
earnings per share 21,926,360 21,574,674
Six months Six months
ended 30 September ended 30 September
2023 2022
Earnings GBP GBP
Basic (loss) / earnings per share (0.005) 0.020
-------------------
Diluted earnings per share (0.005) 0.020
------------------- -------------------
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 and
-- The tax effect of the above item
The calculation of adjusted basic and adjusted diluted earnings
per share is based on:
Six months Six months
ended 30 September ended 30 September
2023 2022
GBP'000 GBP'000
(Loss) / Profit after tax on continuing
operations (103) 418
Adjusted for:
Share-based payment expense 253 314
Tax effect of adjustments above - -
Adjusted earnings for the purposes
of adjusted basic and adjusted diluted
earnings per share 150 732
Six months Six months
ended 30 September ended 30 September
2023 2022
Earnings GBP GBP
Adjusted basic earnings per share 0.01 0.03
-------------------
Adjusted diluted earnings per share 0.01 0.03
------------------- -------------------
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.
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.
4.(Loss) / Profit for the year
(Loss) / Profit for the year has been arrived at after
charging/(crediting):
Six months ended 30 September 2023 Six months ended 30 September 2022
GBP'000 GBP'000
Depreciation of property, plant and
equipment 70 69
Amortisation 24 23
Employee pension 10 3
Expected credit loss - license fees 8 -
Expected credit loss - outstanding (2) -
loans
Expected credit loss - profit share (7) -
5. 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 Six months
ended 30 September ended 30 September
2023 2022
GBP'000 GBP'000
External revenue by product line
License Fee Income 1,108 1,491
Profit Share Income - 18
Total Revenue 1,108 1,509
--------------------
A further breakdown of revenue by reporting line is shown
below:
Six months Six months
ended 30 September ended 30 September
2023 2022
GBP'000 GBP'000
External revenue by reporting
line
License fees attributable to Mergers
& Acquisitions (M&A) 800 1,142
License fees attributable to Other 308 349
Profit share attributable to M&A - 18
Total Revenue 1,108 1,509
-------------------- --------------------
6. Dividends
The final ordinary dividend for the year ended 31 March 2023 of
GBP0.02 per share as proposed in the 31 March 2023 financial
statements and approved at the Group's AGM was paid on 29 September
2023.
In addition, since the end of the half-year the Directors have
recommended the payment of an interim dividend of 1.25 pence per
fully paid ordinary share. The dividend will be paid on 12 January
2024 to shareholders on the register on 15 December 2023 with the
shares going ex-dividend on 14 December 2023. In accordance with
IAS10 "Events after the Balance Sheet Date", these dividends have
not been reflected in the Interim Report.
7. Investments
Group Group
As at 30 September As at 31 March
2023 2023
GBP'000 GBP'000
Financial assets measured under
the equity method
Investment in Associates 132 209
Investment in jointly controlled
entities 30 39
Financial assets measured at
amortised cost
Other investments 1,422 922
------------------- ---------------
Total Investments 1,584 1,170
------------------- ---------------
The movement in Investment in Associates and Investments in
jointly controlled entities is included in the cashflow statement
as a decrease in amounts owed from associates and jointly
controlled entities in relation to profit share.
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.
On 12 July 2023, DSW Capital completed a transaction with
Bridgewood Financial Solutions Ltd, to acquire licence fee income
and provide funding to support a management buyout. As part of the
transaction, DSW Capital have provided a long-term loan of
GBP780,000 to Bridgewood. The fair value of the loan has been
accounted for as an investment with the below market value element
being recorded separately within prepayments and accrued income,
both as in accordance with IFRS 9.
8. Trade and other receivables
Group Group
As at 30 September As at 31 March
2023 2023
GBP'000 GBP'000
Trade receivables 1,126 965
Loss allowance (49) (41)
-------------------- ----------------
1,077 924
Other receivables 1,070 805
Loss Allowance (236) (238)
-------------------- ----------------
834 567
Prepayments and Accrued
Income 947 528
Loss Allowance (5) (12)
-------------------- ----------------
942 516
-------------------- ----------------
2,853 2,007
-------------------- ----------------
Included in prepayments and accrued income are GBP631k (March
2023: GBP166k) due in greater than 1 year. Other receivables are
made up from loans due from licensees, and prepayments and accrued
income relates to profit share due from licensees.
9. 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 or has significant influence over an
entity either via voting rights or shareholding.
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 significant
shareholders.
Six months ended 30 September 2023 Six months ended 30 September 2022
Revenue and Cost Recharges Revenue and Cost Recharges
GBP'000 GBP'000
PHD Industrial Holdings 100 137
DSW Investments 2 LLP 53 51
Other investments 274 320
Totals 427 508
----------------------------------- -----------------------------------
Other investments relate to routine and similar transactions
which arose in the ordinary course of business, with DSW CF Leeds,
DSW TS Leeds, DSW Business Recovery and DSW Bridgewood.
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 2023 30 September 2022
Amounts due from/(to) related parties Amounts due from/(to) related parties
GBP'000 GBP'000
PHD Industrial Holdings 15 24
DSW Investments 2 LLP (32) (32)
Other investments 248 290
Totals 231 282
-------------------------------------- --------------------------------------
, 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 or visit 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.
END
IR NKQBPABDDCDB
(END) Dow Jones Newswires
November 27, 2023 02:00 ET (07:00 GMT)
Dsw Capital (LSE:DSW)
Historical Stock Chart
From Apr 2024 to May 2024
Dsw Capital (LSE:DSW)
Historical Stock Chart
From May 2023 to May 2024
