TIDMDWF
RNS Number : 6581T
DWF Group PLC
18 November 2019
DWF Group plc
("DWF" or the "Company")
18 November 2019
HY20 Interim Trading Statement
-- Group revenue growth of not less than 10%, the vast majority
driven by organic activity, especially in International and
Connected Services
-- Tight working capital management with a GBP9.5m (16%) net
debt reduction compared to same period last year
-- Continued positive trend in lockup day reduction
-- Net partner headcount increased by 20, demonstrating DWF's
ability to attract and retain talent
-- The Board remains confident it will deliver further revenue
and profit growth in line with management's expectations
DWF, the global legal business providing complex, managed and
connected services, today issues the following trading update for
its half year ended 31 October 2019.
The Group has continued to deliver on its stated strategy and
the Board is pleased with first half revenue growth of not less
than 10% across the group, the vast majority driven by organic
activity. International and Connected Services continue, as
expected, to deliver the strongest revenue growth in the period
with increases of approximately 29% and 18% respectively. Insurance
and Commercial Services delivered combined organic growth of
approximately 5%, in line with guidance. This growth was weighted
towards the Insurance division and the Litigation practice group
within Commercial Services, reflecting DWF's strong
counter-cyclical offering.
Net debt of GBP49.5m reflects a GBP9.5m reduction on the same
period last year in line with management expectations for the
half-year. The increase versus April 19 primarily reflects the
normal cyclicality of partner tax payments in addition to the GBP3m
dividend payment in September. We continue to focus on improving
working capital management with lockup days reducing by two from
the April 2019 position, demonstrating good progress towards the
5-10 day medium term target. This reduction reflects an underlying
increase in WIP days since April of 15 days, which is part of the
normal seasonal WIP cycle, with a reduction in debtor days of 17
reflecting significant improvement in credit control efficiency.
Management expects further improvements in working capital and the
company's net debt position to be in line with guidance for the
full year.
DWF increased net partner headcount by 20 on a full-time
equivalent basis in the period through its successful partner
hiring and promotion programme, demonstrating DWF's ability to
attract and retain talent. This includes the recruitment of 15
senior hires, 14 partners and one director, to its international
business in the final two months of the period. The Company also
has a healthy lateral hire pipeline demonstrating the
attractiveness of its global platform to deliver complex, managed
and connected services.
DWF announced a 1.25p dividend per share on 13 November. This
represents the first interim dividend in respect of the six month
period ended 31 October 2019, in line with the Company's stated
dividend policy as detailed in its prospectus.
The Company will announce its interim results on 11 December
2019.
Outlook
Activity levels and the second half pipeline of work remain
robust, supported further by the recent partner hires in
International and the activation of the BT Managed Services
contract. M&A activity also remains part of the Group strategy
with a pipeline of carefully chosen targets being assessed for
feasibility.
The Board remains confident in DWF's prospects and anticipates
that it will deliver further revenue and profit growth in line with
management's expectations.
Andrew Leaitherland, CEO, commented: "The first half of the year
has seen a number of important milestones achieved as we continue
to deliver on our IPO promises, developing the business in our
first year as a listed entity. We have launched in Poland, made
significant investment in partner hires globally, expanded our
German operation with a presence in Dusseldorf, and seen a robust
UK performance, particularly in Insurance and Litigation, despite
the political uncertainty. The Group also won a significant
contract with BT, demonstrating the progress of our Managed
Services platform. Going forward, we will continue to supplement
this organic activity with selective M&A, with our associations
and broad market reach providing a strong pipeline of
opportunities. We continue to be recognised for our innovative
approach, as highlighted by the FT Innovative Lawyer Awards, and
remain focused on delivering our strategy and purpose of
transforming legal services through our people, for our
clients."
For further information:
DWF Group plc
James Igoe +44(0)20 7280 8929
Head of Communications & IR
Finsbury (public relations adviser to DWF)
Ed Simpkins, Charles O'Brien +44(0)20 7251 3801
About the Company
DWF is a global legal business providing complex, managed and
connected services, operating from 28 key locations with
approximately 3,200 people. The Company became the first Main
Market Premium Listed legal business on the London Stock Exchange
in March 2019. DWF recorded revenue of GBP272.4 million in the year
ended 30 April 2019. For more information visit: www.dwf.law
Forward looking statements
This announcement contains certain forward-looking statements
with respect to the Company's current targets, expectations and
projections about future performance, anticipated events or trends
and other matters that are not historical facts. These
forward-looking statements, which sometimes use words such as
"aim", "anticipate", "believe", "intend", "plan" "estimate",
"expect" and words of similar meaning, include all matters that are
not historical facts and reflect the directors' beliefs and
expectations and involve a number of risks, uncertainties and
assumptions that could cause actual results and performance to
differ materially from any expected future results or performance
expressed or implied by the forward-looking statement.
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END
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