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DSW Capital has reported the company’s adjusted pre-tax profit decreased by 29.6% to £1.4m in FY23, compared to £2m the previous year.
Group revenue was the same as FY22 at £2.7m, while the group also reported £18.3m in network revenues, on par with the previous year, despite a “challenging H2”.
DSW said that the decline in profitability reflected full year’s plc costs including investment in additional central resources.
Fee earners at period end increased to 97, compared to last year’s 88, demonstrating the attractiveness of the licence model and the network’s heightened profile following IPO.
During the period, DSW launched the Future Leaders Programme, a programme produced in conjunction with BecomingX, investing in the next generation of DSW Leaders.
Regarding FY24, the group said that trading performance has so far been similar to Q4 FY23. The board said it will focus on broadening the range of service lines in DSW’s portfolio as well as investing in recruitment and supporting its existing licensees with improved central infrastructure to ensure that DSW is well positioned for further growth.
James Dow, chief executive officer, said: “While the outcome for FY23 was not what we expected, at the start of the financial year, we are pleased with the progress the group has made in other areas.
“Our investment in building a strong infrastructure to support our growth continued and we have significantly enhanced our recruitment capabilities despite the tough market; remaining greedy whilst others are fearful. This approach has served us well to date and we are confident that we will benefit from this investment in subsequent trading periods.”
He added: “The post-year end addition of Bridgewood to the DSW Network demonstrates our ambitions to rebalance the portfolio and expand the geographical presence of the group. We believe the increasing scrutiny and regulation facing some of our larger competitors, in combination with the current market conditions, will enable us to attract more quality fee earners to DSW, supporting our future growth and expansion.”
