Business
Trading Update and Notice of Results
Trading Update and Notice of Results.
About this update from Dsw Capital Plc
[{"type":"text","content":"\n\n \n15 May 2025\nDSW CAPITAL PLC\n(\"DSW Capital\", \"DSW\" or the \"Group\")\n(AIM: DSW)\n \nTrading Update and Notice of Results\nFurther upgrade to FY25 guidance resulting from supernormal M&A performance\n \nDSW Capital, a profitable, mid-market, challenger professional services licence network and owner of the Dow Schofield Watts and DR Solicitors brands, announces the following trading update, ahead of the Group's Final Results for the year ended 31 March 2025 (\"FY25\" or the \"Year\"), which will be released on 8 July 2025.\n \nFollowing the transformative, earnings-enhancing acquisition of DR Solicitors and a significant upgrade to FY25 guidance, resulting from supernormal levels of 'Beat the Budget' M&A activity, announced earlier in the Year, the board is delighted to report that FY25 revenue and Adjusted EBITDA are ahead of current market forecasts.\n \nFY25 financial highlights\n \n\n\n\n\n•\n\n\nNetwork Revenue is expected to increase by 61% to a record £25.8m (FY24: £16.0m), ahead of market expectations\n\n\n\n\n•\n\n\nAdjusted EBITDA, which is also ahead of forecasts, is expected to almost triple to £1.76m (FY24: £0.6m)\n\n\n\n\n•\n\n\nAverage revenue per fee earner in the Year was £214k (FY24: £153k)\n\n\n\n\n•\n\n\nAcquisition of DR Solicitors for a total consideration of £6.1m, satisfied by £4.3m in cash and £1.8m of new ordinary shares, bringing a highly scalable, cash-generative, and profitable legal platform to the Group\n\n\n\n\n•\n\n\nFee earners increased by 27% to 136 (FY24: 107), following the acquisition of DR Solicitors, which brought 20 to the Group, and a further nine fee earners joining our existing licensees\n\n\n\n\n•\n\n\nBalance sheet is healthy, with cash balances of £2.7m at 31 March 2025 (HY25: £2.3m) and net debt of only £0.3m (FY24: £2.6m net cash), following the acquisition of DR Solicitors and the drawdown of a new £3.0m RCF to part fund the deal\n\n\n\n\n•\n\n\nAs previously announced, the progressive dividend policy expected to be maintained with a proposed final dividend for the Year of 2.0p (FY24: 0.75p)\n\n\n\n\n \nFY25 operational highlights\n \n\n\n\n\n•\n\n\nUnprecedented levels of M&A activity created c.£3.0m of supernormal Network Rev...