Half Year Trading Update and Notice of Results
DSW Capital PLC reported a resilient first half of FY26, with Network Revenue increasing by 32% to £10.3 million, driven by the acquisition of DR Solicitors and growth in existing businesses. Adjusted EBITDA rose significantly to £0.7 million from £0.1 million in the prior year, and the number of Fee Earners grew to 144. The company maintained strong cash reserves of £2.2 million after a £1 million loan repayment. While the results are typically weighted towards the second half, the Board remains confident despite economic uncertainties, with half-year results expected on November 24, 2025.
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Half Year Trading Update
and
Notice of Results
Network Revenue up 32% with continued Fee Earner growth
DSW Capital, a profitable, mid-market, challenger professional services platform and owner of the Dow Schofield Watts and the DR Solicitors brands, announces the following trading update ahead of the Group's half year results for the six months ended 30 September 2025 ("H1 FY26" or the "Period"), which are expected to be released on 24 November 2025.
The Board is pleased to report that trading remained resilient throughout the Period and in line with management expectations.
Highlights
| • | Adjusted EBITDA rose significantly to £0.7m (H1 FY25: £0.1m), reflecting a full six-month contribution from DR Solicitors, acquired in November 2024 |
| • | Network Revenue increased by 32% to £10.3m, driven by the acquisition of DR Solicitors, and growth within existing DSW licensee businesses |
| • | Number of Fee Earners using the DR Solicitors platform increased to 26 at the half year end, up from 20 on acquisition |
| • | Fee Earners increased by 8 to 144 at 30 September 2025 (31 March 2025: 136) |
| • | Cash conversion was strong, with cash at 30 September 2025 of £2.2m after a £1m loan repayment |
| • | The Group's financial results are typically weighted towards the second half of the year. Whilst the business is currently trading well, the Board is mindful of the well documented geo-political and economic uncertainties, particularly in relation to the Autumn Budget |
Trading Performance in H1 FY26
Network Revenue in H1 FY26 was £10.3m (H1 FY25: £7.8m), resulting in Total Income in the Period of £2.8m (H1 FY25: £1.1m) and Adjusted EBITDA of £0.7m (H1 FY25: £0.1m).
The Group's strategic aim is to build a resilient and diversified group of licensee businesses, as demonstrated by the acquisition of DR Solicitors in November 2024. Following this acquisition, the Group's dependency on M&A activity has reduced significantly in line with management expectations, with M&A as a percentage of Network revenue at 32% in the Period, compared to 67% in H1 FY25.
Cash at the half year end was in line with management expectation at £2.2m (30 September 2024: £2.3m), reflecting strong operating cash conversion of 133% for the Period and a £1.0m repayment of the £3.0 million OakNorth Bank revolving credit facility in June 2025, which was used to partially fund the acquisition of DR Solicitors.
The Group's results are typically weighted towards the second half of the financial year, due to the timing of profit share income recognition and traditionally heightened activity ahead of the tax year-end.
Shru Morris, CEO of DSW Capital, said:
"Firstly, I would like to thank all our licensees for their continued commitment to DSW and their contribution to a good set of results. We are encouraged by the Group's performance in the first half of the year, which demonstrates the resilience, scalability, and potential of our platform. The integration of DR Solicitors is progressing well. We continue to experience strong demand for our services across key sectors, with annual consultant growth exceeding 30 per cent and the recruitment of a new Corporate Legal team specialising in Dental and Pharmacy work.
"Whilst we, as a board, are ever mindful of the potential for market disruption which may result from the current geo-political and economic uncertainty, we are confident in the prospects for our businesses and our strategy to build shareholder value over the long term. Our focus remains firmly on driving sustainable growth, expanding our network of fee earners, and delivering results for all our stakeholders. We look forward to providing a full update on the Group's progress and ambitions at the Half Year Results later this month."
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