Dsw Capital Plc · LSE:DSW
Dsw Capital — Investor Presentation (May 2022)
14 slides from Dsw Capital's investor presentation, May 25, 2022
Slide 1: Introduction to DSW Capital plc
Introduction to DSW Capital plc Wednesday 25th May 2022
Slide 2: Disclaimer
Disclaimer The following presentation, including a hard copy of these slides/the talks given by the presenters, the information communicated during any delivery of the presentation and any question and answer session and any document or material distributed at or in connection with the presentation
Slide 3: Today's Presenters
Today’s Presenters Executive Directors James Dow Nicole Burstow Chief Executive Chief Financial Officer James established Dow Schofield Watts LLP in Nicole joined Dow Schofield Watts LLP as Group 2002. Finance Director in April 2019. James is qualified as both a Chartered Nicole previously spent 15
Slide 4: Overview of DSW
Overview of DSW • Challenger “Big 4” mid market professional services network. Joined • 88 licenced fee earners predominantly trading under the DSW brand with AIM 6 locations across England and Scotland. Dec 21 • Licence fee is charged typically on a percentage of revenue. • Provide the infrastructu
Slide 5: The Investment Thesis: DSW Capital
The Investment Thesis: DSW Capital We have created a robust and innovative platform model to expand our services, disrupting the traditional model of accounting firms. • Recurring revenue base. • Track record of high growth. • Scalable, capital light model. • Strong cash generation which enables hig
Slide 6: Growth Strategy
Growth Strategy We plan to accelerate We believe the accounting growth through: profession is ready for • Acquisition of licence something new fees Our partners are given • Organic growth greater flexibility, a direct link “KPMG sells pension “Deloitte sells its restructuring between fees and reward
Slide 7: Timeline of the Business
Timeline of the Business December 2012 – Dec 2020 – launched VAT Services Launch of Tax Aug 2021 – DSW CF Advisory Advisory North Launch of Debt based in North West Nov 2018 – Launch of was founded as a West Advisory London boutique DSW Ventures (Angel Dec 2014 PHD investment network) corporate fina
Slide 8: Current Service Lines
Current Service Lines Corporate Finance Business Recovery Forensic Services Financial Due Business Planning Equity Finance Advisory Established in 2014 Established in 2012 Diligence Joined DSW in 2018 Established 2008 Award winning Advisory, Expert witness, Established in 2008 Financial and 2 succes
Slide 9: The DSW Licence Model
The DSW Licence Model We recruit highly skilled professionals (typically “Big 4”) in focussed niches of expertise to run their own business and provide services to small to mid market corporates and their owner managers. Generally, a typical licensee arrangement includes • a licence fee between 10-2
Slide 10: FY22 Performance Headlines
FY22 Performance Headlines “The Group has continued to trade strongly, following its IPO in December 2021, and is pleased to report that expected Revenue and Adjusted Pre-Tax Profit for FY22 are ahead of market expectations, subject to audit” – Trading Update 10th May 2022 14.3% £227k 69.1% Key Fina
Slide 11: Post-IPO Activity
Post-IPO Activity New service line - DSW Asset Based Lending Risk Management New locations – 2 new partners in Edinburgh and Glasgow and a new office in Manchester. Increased headcount to 88, 14.3% YoY increase Named 6th most active corporate finance advisor in the UK in the first quarter of 2022 by
Slide 12: Target Acquisition Service Lines
Target Acquisition Service Lines High margin, high growth, niche professional services where there is a strong synergistic fit Existing service lines in new locations Tax related services and family office Employer solution services Niche legal services Other Big 4 (non-audit) service lines Dow Scho
Slide 13: Summary
Summary Why invest? Robust, recurring income stream Predictable cost base with low operational gearing Capital light Scalable platform model Significant opportunity for organic and acquisition driven growth Cash backed profits which can support a 70% dividend pay-out ratio based on Adjusted Profit-A
Slide 14: Contact Us
Contact Us Daresbury London Leeds Manchester Stockport 7400 Daresbury Park 60 St Martin’s Lane 4100 Park Approach Bonded Warehouse The Mailbox, Daresbury Covent Garden Thorpe Park 18 Lower Byrom St Exchange Street Warrington London Leeds Manchester Stockport WA4 4BS WC2N 4JS LS15 8GB M3 4AP SK3 0GA