
DSW Capital (LSE:DSW) has revised its FY25 outlook upward, crediting strong performance in mergers and acquisitions along with the recent integration of DR Solicitors. The firm’s latest guidance shows revenue and Adjusted EBITDA outpacing earlier projections, with network revenue projected to grow by 61% to £25.8 million. Adjusted EBITDA is expected to reach £1.76 million—nearly three times the prior year’s figure.
The addition of DR Solicitors has bolstered DSW Capital’s legal segment, helping to diversify its operations and lessen dependency on M&A-driven income. Management remains confident in the company’s growth prospects, even amid potential economic headwinds, and is committed to broadening its service offerings and market reach.
Despite the upbeat revenue outlook and a solid balance sheet, DSW faces some financial pressures. Declining profitability and inconsistent cash flows weigh on its overall performance. While the company benefits from low leverage and a high equity ratio, which add to its financial resilience, technical indicators currently reflect bearish momentum. Additionally, a high price-to-earnings ratio raises valuation concerns unless earnings growth continues to strengthen.
About DSW Capital Plc
DSW Capital Plc is a UK-based professional services firm known for its innovative approach to the traditional accounting model. The company owns the Dow Schofield Watts and DR Solicitors brands, operating under a licensing structure that offers autonomy and flexibility to its partners. Founded in 2002 by three former KPMG professionals, DSW Capital supports a network of more than 130 fee earners across 12 offices nationwide. With a scalable, cash-generative business model, it positions itself as a growth platform for entrepreneurial professionals in the mid-market advisory space.
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Average Daily Trading Volume: 23,524 shares
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Technical Outlook: Sell signal
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Current Market Capitalization: £12.31 million