DSW Capital – the owner of the fast-growing professional services network Dow Schofield Watts – has reported a continued strong performance in the six months to 30 September 2022 in a trading update ahead of its half-year results which are expected to be released on 1 December.
Network revenue rose to £9.8m during the six months, up 34.2% compared to the same period last year, while total income from licensees increased by 40% to £1.6m. This has more than covered the ongoing cost of being listed on AIM and resulted in adjusted pre-tax profit of £0.9m, up from £0.8m in the same period last year.
DSW Capital operates a platform business model that provides a flexible and autonomous alternative to traditional accounting and professional services firms. The company is based in Daresbury with additional offices including Manchester, Leeds, London, Reading, Aberdeen, Edinburgh and Glasgow.
The statement said that the number of fee earners increased 5.7% to 93 during the six-month period as the group continued to benefit from its heightened profile following its flotation on AIM in December 2021 and its investment in central resource.
Demand for its services remained strong throughout the period, against a backdrop of reducing deal volumes across the wider market. As a result, Dow Schofield Watts moved up Experian’s rankings to 10th Most Active Corporate Finance Advisor in the UK in the first half of 2022, compared to 13th in the first half of 2021.
Nicole Burstow, CFO, said: “The board is pleased with the first half performance and believes current trading, against a backdrop of wider economic uncertainties and the potential effect of this on SME activity, is on track to achieve market expectations for the year ending 31 March 2023. Since the period end, the group has welcomed a new Wealth Planning partner and activity levels have been consistent with the board’s expectations.”
