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LONDON - DSW Capital PLC (AIM:DSW) reported a 110% increase in revenue to £4.9 million for the fiscal year ended March 31, 2025, driven by its acquisition of DR Solicitors and strong M&A activity.
The mid-market professional services network saw its adjusted profit before tax nearly triple to £1.4 million, with adjusted profit margins improving to 29.5% from 21.9% in the previous year, according to the company’s final results statement.
Network revenue, representing total revenue earned by DSW licensees and DR Solicitors, rose 62% to £25.8 million compared to £16 million in fiscal 2024.
The company reported exceptional M&A activity in October 2024, which generated approximately £3 million in supernormal network revenue. M&A activity returned to normal levels following the Autumn Budget.
DSW Capital completed the acquisition of DR Solicitors in November 2024 for £6.3 million, satisfied through £4.5 million in cash and £1.8 million in new ordinary shares. The legal services firm contributed £0.5 million to adjusted EBITDA in fiscal 2025.
The acquisition has reduced DSW’s dependency on M&A revenue to 55% of total income, down from 68% in the previous year. The company expects this dependency to decrease further to around one-third in fiscal 2026 with a full year’s contribution from DR Solicitors.
Cash generated from operations increased significantly to £2 million compared to £85,000 in fiscal 2024. The company ended the year with £2.7 million in cash and net debt of £0.3 million, after drawing down a £3 million revolving credit facility to partially fund the DR Solicitors acquisition.
The board proposed a final dividend of 2.0 pence per share, bringing the total dividend for the year to 3.0 pence, up from 2.0 pence in the previous year.
DSW Capital reported that its total number of fee earners increased by 27% to 136, with DR Solicitors adding 20 professionals and nine additional fee earners joining existing licensees.
The company stated that trading in the early months of fiscal 2026 has been encouraging, with normal levels of M&A activity in the first quarter.
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