Trading Update
DSW Capital PLC has announced a trading update for the year ending 31 March 2026, reporting that while DR Solicitors achieved double-digit revenue growth of approximately 11%, the outbreak of war with Iran has severely impacted M&A activity, leading to postponed or aborted deals. Consequently, the company now expects Total Income of around £6.2 million, Adjusted EBITDA of approximately £1.6 million, and Adjusted profit before tax of about £1.3 million for FY26. Despite these challenges, DSW Capital maintains strong cash reserves of £1.4 million with net debt of £0.5 million, and the board remains focused on its strategy of diversification and attracting new licensees.
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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 for the year ending 31 March 2026 ("FY26").
The Board reports that, having generated double digit growth at DR Solicitors in FY26 and trading across the network remained steady, the outbreak of war with Iran has severely impacted M&A activity in the UK, with many deals the Group expected to complete in March being aborted or postponed until the long-term economic ramifications of the war are established.
March is traditionally an important month for M&A completions, ahead of the tax year end. While the Group has continued to deliver on its strategic drive to diversify away from a historic reliance on M&A, achieving Revenue growth of c.11% at DR Solicitors in FY26 to date, March currently remains a critical month for the business in terms of full year outturn. Following the rapid and significant drop off in M&A activity, the board now expects to report Total Income of c.£6.2m, Adjusted EBITDA of c.£1.6m and Adjusted profit before tax of c.£1.3m for FY26.
Our cash reserves remain strong with cash of £1.4m at 28 February 2026 and Net Debt of £0.5m. This is after £1m loan repayment of the £3.0m OakNorth Bank revolving credit facility, drawn down fully to part fund the acquisition of DR Solicitors, and £0.8m dividend payments across October 2025 and January 2026.
Shru Morris, Chief Executive Officer said:
"Whilst it is very disappointing that the robust performance of FY26 has stalled, the Board's strategic aim continues to focus on growing the business and building a resilient and diversified group of licensee businesses. The acquisition of DR Solicitors and its subsequent growth, reducing the Group's dependency on M&A activity significantly, demonstrates this strategy in action.
"Our efforts remain concentrated on attracting additional licensees and consultants, whilst we are also pursuing new business at DR Solicitors, which continues to grow stronger since its acquisition.
"The Group remains profitable and cash generative, despite the current geo-political and economic uncertainties, with a strong pipeline of diversification opportunities in its sights and will announce a full trading update post year end, in May 2026, in line with its usual timetable."
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