Half Year Trading Update and Results Notice

Half Year Trading Update

and

Notice of Results

Strong trading with continued income growth and robust cash generation

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 2026 (“H1 FY27” or the “Period”), which are expected to be released on 23 November 2026.

The Board is pleased to report that trading remained strong throughout the Period and in line with management expectations.

Highlights

• Total Income increased by 21% to £3.4m, driven by strong M&A activity and 20% organic growth in DR Solicitors
• Adjusted EBITDA increased to £0.8m (H1 FY26: £0.7m)
• Network Revenue increased by 24% to c.£12.8m, driven by organic growth in DR Solicitors and strong M&A activity during the first half of the year
• Fee Earners remained flat at 135 (31 March 2026: 135) with revenue per fee earner increasing to £181k (31 March 2026: £162k)
• Operating cash conversion was strong at over [100]%, with cash balances of £2.4m at 30 September 2026 (31 March 2026: £2.0m)
• Acquisition of Integer Advisory Limited by an existing licensee, supported by DSW Capital, to strengthen the Group’s public sector advisory capabilities
• A new Transaction Services team launched in Southampton, expanding our geographic reach
• In October 2026, DSW Legal expanded into employment law by onboarding an established business as a licensee

Trading Performance in H1 FY27

Network Revenue in H1 FY27 was £12.8m (H1 FY26: £10.3m), resulting in Total Income in the Period of £3.4m (H1 FY26: £2.8m) and Adjusted EBITDA of £0.8m (H1 FY26: £0.7m), an improvement in each key metric.

The Group's strategic aim is to build a resilient and diversified group of licensee businesses, as demonstrated by the launch of DSW Legal building on the acquisition of DR Solicitors in November 2024.

Cash at the Period end was in line with management expectations at £2.4m (31 March 2026: £2.0m), reflecting strong operating cash conversion of 107% for the Period and after providing £0.36m equity funding to support DSW Business Planning with the acquisition of DSW Integer Advisory Limited in June 2026.

The Group’s net cash position at the half year end improved to £0.5m (30 September 2025: £0.4m).

Whilst the business is currently trading well, the Board is mindful of the well documented geopolitical and economic uncertainties.

Shru Morris, CEO of DSW Capital, said:

“Our strong first-half performance reflects the strength of our deal advisory teams and continued demand for legal services, delivering growth in revenue and EBITDA alongside healthy cash conversion. I’m particularly pleased to welcome two new licensees to the Group in the year to date and to see the acquisition of Integer build on our longstanding track record of backing ambitious entrepreneurs to grow and scale their businesses under the Dow Schofield Watts brand.

“We remain focused on bringing high-quality businesses and licensees into the Group that complement our existing capabilities and broaden what we can offer our clients. We are also seeing increasing opportunities from closer collaboration across our service lines, enabling our teams to support clients more broadly. Despite ongoing geopolitical uncertainty and challenging economic conditions, M&A activity remained stable during the first half. We are encouraged by the resilience we continue to see across the Group and remain cautiously optimistic about delivering a full-year performance in line with market expectations.”

Definitions:

Adjusted EBITDA - Adjusted EBITDA is defined as adjusted profit before tax amended to add back finance costs, depreciation, amortisation, impairment of loans due from associated undertakings, and deduct finance income .

Adjusted profit before tax – Adjusted profit before tax which is defined as profit before tax adjusted for items not considered part of underlying trading, which in the current and prior year primarily comprise share-based payments, amortisation of intangible assets arising on acquisition, and acquisition-related costs.