DSW Capital lowers interim dividend as swings to loss but optimistic

(Alliance News) - DSW Capital PLC on Monday hailed growth of its partner numbers, a "lead ...

Alliance News 27 November, 2023 | 11:47AM
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(Alliance News) - DSW Capital PLC on Monday hailed growth of its partner numbers, a "lead indicator" of future organic fee earner growth, as it reported a swing to an interim loss.

The Warrington, England-based owner of the Dow Schofield Watts financial advisory brand said in the six months to September 30, it swung to a pretax loss of GBP63,000 from a profit of GBP588,000 a year prior.

Revenue declined 27% to GBP1.1 million from GBP1.5 million. Administrative expenses increased 24% to GBP1.3 million from GBP1.1 million.

The company lowered its interim dividend by 29% to 1.25 pence per share from 1.76p a year prior. For the current financial year 2024, DSW Capital aims to maintain its full-year dividend of 3.76p from financial 2023, which was 11% lower than 4.22p in financial 2022.

Looking ahead, DSW Capital expects an adjusted pretax profit between GBP1.1 million and GBP1.4 million for financial 2024, with the upper range matching financial 2023, which was down 30% from GBP2.0 million in financial 2022.

"The board is confident in the group's growth strategy and continues to invest in the long-term future of the network," the company said.

Chief Executive Officer James Dow said: "During this favourable time for recruitment, our ongoing investment has delivered three new offices to the network and expanded our corporate recovery and tax service lines, as well as increasing partner numbers from 40 to 51. Partner numbers are a lead indicator of future organic fee earner growth."

DSW Capital shares rose 6.9% to 54.00 pence each on Monday morning in London.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
DSW Capital PLC Ordinary Shares 51.00 GBX 2.00 -

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