Accounting Firms

DSW Capital hails IPO ‘halo effect’ on revenues

During the period, DSW revealed its fee earners at year end increased to 88, up 14.3%, which it added demonstrated the ‘profile boost’ from the IPO

DSW Capital has revealed its network revenues increased 19.6% to £18.3m, which it said was “significantly ahead of market expectations”.

For the year ended 31 March 2022, it also recorded group revenues of £2.7m, up 12.5% from £2.4m the previous year.

The group said the performance was driven by the “halo effect” of its recent IPO in December which helped it raise over £5m.

The group also confirmed adjusted pre-tax profit of £2.0m (FY21: £1.6m) and an overall Loss before tax, after the deduction of the Share Based Payment charge and IPO costs, of £0.03m – down from a profit before tax of £1.59m.

During the period the DSW revealed its fee earners at year end increased to 88, up 14.3%, which it added demonstrated the “profile boost” from IPO and licence model negating the wider difficult recruitment market.

It also expanded its service lines in line with strategic objectives, with the addition of DSW Asset Based Lending Risk Management LLP in January 2022.

CEO James Dow said: “Our admission to AIM has enhanced and strengthened the Dow Schofield Watts brand, as we had expected, and the IPO “halo” effect is undoubtedly supporting our growth plans.

“The sector in which we operate is substantial and developing in a way that makes DSW’s business model increasingly attractive to ambitious entrepreneurial professionals and their clients. By empowering these individuals to create and build their own professional services businesses, while also helping them develop as leaders and be the best they can be, I am confident that we will deliver strong returns for all our stakeholders.”

He added: “Our confidence is built on the quality of our people within the Network and their clients. This quality is reflected in the average revenue per Fee Earner achieved in the year of £227k (FY21: £196k) – an important metric, as we execute on our vision to become the most sought-after destination for ambitious professionals.

“DSW has a successful and profitable model, a strong balance sheet and an excellent capital base from which to scale the business. In a sector which is ripe with opportunity, we have every confidence in the future prospects for the group.”

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