DSW Capital PLC Half Year Trading Update and Notice of Results (1280F)
November 03 2022 - 3:00AM
UK Regulatory
TIDMDSW
RNS Number : 1280F
DSW Capital PLC
03 November 2022
3 November 2022
DSW CAPITAL PLC
("DSW Capital", "DSW" or the "Group")
(AIM: DSW)
Trading Update and Notice of Half Year Results
Strong H1 performance; on track to achieve full year
expectations
DSW Capital, a profitable, fast growing, mid-market, challenger
professional services licence network and owner of Dow Schofield
Watts brand, announces the following trading update ahead of the
Group's Half Year Results for the period ended 30 September 2022
("H1 23" or the "Period"), which are expected to be released on 1
December 2022.
The Group continued to trade strongly in H1 23, with network
revenue rising to GBP9.8m, up 34.2% compared to the same period in
the prior year (H1 22: GBP7.3m). This resulted in total income from
licensees (1) in the Period of GBP1.6m, up 40.0% compared to the
same period in the prior year (H1 22: GBP1.2m), which has more than
covered the ongoing cost of being on AIM, resulting in Adjusted
Pre-Tax Profit (2) of GBP0.9m (H1 22: GBP0.8m).
Fee Earners increased to 93 by 30 September 2022, up 5.7% since
the full year end, as the Group continued to benefit from its
heightened profile following IPO and its investment in central
resource.
Demand for the DSW Network's services, which are primarily SME
focused, remained strong throughout the Period, against a backdrop
of reducing deal volumes across the wider market (3) . As a result,
Dow Schofield Watts moved up Experian's rankings to 10(th) Most
Active Corporate Finance Advisor in the UK in the first half of
2022 (3) , compared to 13(th) in the first half of 2021.
Outlook
The Board is pleased with the first half performance and
believes current trading, against a backdrop of wider economic
uncertainties and the potential effect of this on SME activity, is
on track to achieve market expectations for the year ending 31
March 2023. Since the Period end, the Group has welcomed a new
Wealth Planning partner and activity levels have been consistent
with the Board's expectations.
(1) Total income from licensees represents statutory revenue
plus share of results in associates
(2) Adjusted Pre-Tax Profit excludes IPO costs and share based
payment charge
(3) Experian Market IQ: H1 2022 Report
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 Tel: +44 (0)20 7408 4090
& Broker)
James Thomas / John More / Mark Percy
Guy Wiehahn (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, fast growing, 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. At the
Period end DSW operated licensing arrangements with 20 licensee
businesses with 93 fee earners ("FEs"), across seven offices in
England and three 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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