DSW Capital has released a trading update announcing that H1 FY25 network revenue reached £7.8m, an increase from £7.3m in H1 FY24.
This resulted in total income from licensees of £1.1m (H1 FY24: £1.1m) and Adjusted Pre-Tax Profit of £0.1m (H1 FY24: £0.2m).
This update precedes its Half Year Results, which will be released on 25 November 2024.
The Group delivered a particularly outstanding performance in October 2024, driven by exceptionally strong levels of M&A activity and completions ahead of the Autumn Budget on 30 October 2024.
The positive trading update was also bolstered by the transformative, earnings-enhancing acquisition of DR Solicitors announced on 4 November 2024. This acquisition not only strengthens DSW Capital’s position in the market through enhanced diversification but also broadens the range of niche professional services available to its network.
These successes come as the Group entered FY25 with a record number of fee earners and partners, ensuring it was well-positioned to benefit from an uptick in market activity.
DSW Capital’s licensees continued to show their resilience to achieve results in line with expectations for H1, despite lower levels of M&A activity, which gradually started to improve across the Period before gaining momentum in September as transactions were brought forward to ‘Beat the Budget’.
From L – R; James Dow, CEO, Shru Morris, Deputy CEO, and Pete Fendall, COO
Typically, DSW Capital’s results are weighted toward the second half of the financial year due to the timing of profit share income. This year, H2 results are expected to benefit further from both DR Solicitors’ contribution and the exceptional M&A performance in October.
As a result, the board has raised its guidance for FY25, with expected consolidated network revenue of approximately £23.0m, a substantial increase from FY24’s £16.0m, and adjusted pre-tax profit anticipated at around £1.45m (FY24: £0.5m).
James Dow, Chief Executive Officer, said: “Firstly, on behalf of the board, I must congratulate and thank everyone for their contribution and resilience since October 2021 and for the truly outstanding performance they delivered in October 2024.
“We are delivering on our stated strategy to diversify, with the acquisition of DR Solicitors demonstrating our ability to attract new service lines to the Group, as well as reducing our reliance on M&A significantly (from 67% of revenue to about a third).
“While we have upgraded our guidance for FY25, and the board is confident in the mid to long-term prospects for the Group, we are mindful of macro-economic and political uncertainties that may impact M&A activity.
“With increasing M&A activity, the recruitment market has tightened, but opportunities across DSW and DR remain strong, and we look forward to updating the market further as the year progresses.”
DSW Capital, the business advisory platform behind Dow Schofield Watts and DR Solicitors, has delivered resilient results for its half year ending 30th September 2025, reflecting the scalability of its pioneering model.
