TIDMDSW
RNS Number : 8541K
DSW Capital PLC
10 May 2022
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
10 May 2022
DSW CAPITAL PLC
("DSW Capital", "DSW" or the "Group")
(AIM: DSW)
Trading Update, Notice of Final Results and Investor Event
FY22 ahead of market 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 Final Results for the year ended 31 March 2022 ("FY22" or
the "Period"), which will be released on 14 July 2022.
The Group has continued to trade strongly, following its IPO in
December 2021, and the Board is pleased to report that expected
Revenue and Adjusted Pre-Tax Profit(1) for FY22 are ahead of market
expectations, subject to audit. Expected Network Revenue for FY22
of GBP18.3 million (FY21: GBP15.3 million) is significantly ahead
of market expectations and 19.6% ahead of the prior year.
The DSW Network, which comprises 20 licensee businesses,
benefited from high levels of demand in the professional services
sector throughout the Period and, in February 2022, DSW was named
by Experian as one of the top 20 most active corporate finance
advisers in the UK in 2021. Average Revenue per Fee Earner
increased by 15.8% in the Period to GBP227k (FY21: GBP196k (2) ).
As anticipated, the heightened profile of DSW resulting from the
IPO augmented recruitment across the licensee businesses. Fee
Earners at 31 March 2022 totalled 88, a 14.3% increase on the prior
year.
As previously announced, DSW Capital successfully executed on
its strategy to expand its service lines following IPO with the
addition of DSW Asset Based Lending Risk Management LLP in January
2022. This brought the total number of licensees to 20 across 11
service lines. Since the Period end, the Group has welcomed two new
partners in Scotland, expanding both the service offering and
presence to include Edinburgh and Glasgow.
(1) Adjusted Pre-Tax Profit excludes IPO costs and share based
payment charge.
(2) Prior year comparative calculated using average Fee Earners
in the Period which will be basis for the KPI calculation going
forward.
James Dow, Chief Executive Officer of DSW Capital, said:
"I am delighted to announce a strong performance for FY22 with
the Group expected to report results ahead of expectations both in
terms of revenue and adjusted profits. These results are
underpinned by the significant market demand for DSW's expert
service lines and our performance illustrates the considerable
benefits of our platform model, which empowers ambitious
professionals to seize the opportunities in the market.
"The autonomy and flexibility which the DSW model gives to Fee
Earners is a true differentiator in our market and we believe that
it will continue to attract high quality professionals seeking
greater flexibility in a post-Covid world."
Investor Event
The Board is also pleased to announce that DSW Capital will be
presenting and exhibiting at the Mello 2022 investor conference on
Wednesday 25th May 2022 to be held at the Clayton Hotel Chiswick,
Chiswick High Road, London, W4 5RY.
For further information please visit the event website at
https://melloevents.com/mello2022/ .
Enquiries:
DSW Capital
James Dow, Chief Executive Officer Tel: +44 (0) 1928
Nicole Burstow, Chief Financial Officer 378 029
Tel: +44 (0) 1928
378 039
Shore Capital (Nominated Adviser & Sole Tel: +44 (0)20 7408
Broker) 4090
Hugh Morgan / James Thomas / John More
Guy Wiehahn (Corporate Broking)
Belvedere Communications
Cat Valentine Tel: +44 (0) 7715
Keeley Clarke 769 078
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 88 fee earners ("FEs"), across seven offices in
England and one 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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END
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