16 March 2026

FY26 TRADING UPDATE

DSW Capital, a profitable, mid-market, challenger professional services platform and owner of the Dow Schofield Watts and the DR Solicitors brands, announces the following trading update for the year ending 31 March 2026 ("FY26").

The Board reports that, having generated double digit growth at DR Solicitors in FY26 and trading across the network remained steady, the outbreak of war with Iran has severely impacted M&A activity in the UK, with many deals the Group expected to complete in March being aborted or postponed until the long-term economic ramifications of the war are established.

March is traditionally an important month for M&A completions, ahead of the tax year end. While the Group has continued to deliver on its strategic drive to diversify away from a historic reliance on M&A, achieving Revenue growth of c.11% at DR Solicitors in FY26 to date, March currently remains a critical month for the business in terms of full year outturn. Following the rapid and significant drop off in M&A activity, the board now expects to report Total Income of c.£6.2m, Adjusted EBITDA of c.£1.6m and Adjusted profit before tax of c.£1.3m for FY26.

Our cash reserves remain strong with cash of £1.4m at 28 February 2026 and Net Debt of £0.5m. This is after £1m loan repayment of the £3.0m OakNorth Bank revolving credit facility, drawn down fully to part fund the acquisition of DR Solicitors, and £0.8m dividend payments across October 2025 and January 2026.

Shru Morris, Chief Executive Officer said:

"Whilst it is very disappointing that the robust performance of FY26 has stalled, the Board's strategic aim continues to focus on growing the business and building a resilient and diversified group of licensee businesses. The acquisition of DR Solicitors and its subsequent growth, reducing the Group's dependency on M&A activity significantly, demonstrates this strategy in action.

"Our efforts remain concentrated on attracting additional licensees and consultants, whilst we are also pursuing new business at DR Solicitors, which continues to grow stronger since its acquisition.

"The Group remains profitable and cash generative, despite the current geo-political and economic uncertainties, with a strong pipeline of diversification opportunities in its sights and will announce a full trading update post year end, in May 2026, in line with its usual timetable."

Definitions:

Adjusted EBITDA - Adjusted EBITDA is defined as adjusted profit before tax adjusted to add back impairment of loans due from associated undertakings, finance costs, depreciation, amortisation and deduct finance income.

Adjusted profit before tax - Adjusted profit before tax which is defined as profit before tax adjusted for items not considered part of underlying trading, which in the current and prior period represents share based payments and amortisation of intangible assets recognised on acquisition accounting, is a non GAAP metric used by management and is not an IFRS disclosure.

Network Revenue - Network Revenue is defined as total revenue earned by licensees and DR Solicitors, as opposed to total revenue reported by the Company.

Total income - Statutory Revenue from DSW licensees and DR Solicitors plus share of results of associates

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About DSW Capital

DSW Capital, owner of the Dow Schofield Watts and DR Solicitors brands, is a profitable, mid-market, challenger professional services network with a cash generative business model and scalable platform for growth. Originally established in 2002, by three KPMG alumni, Dow Schofield Watts is one of the first platform models disrupting the traditional model of accounting professional services firms. DSW Capital operates licensing arrangements with its businesses and has over 130 Fee Earners across 12 offices in the UK. These businesses trade primarily under the Dow Schofield Watts and DR Solicitors brands.

DSW Capital's vision is for our brands to become the most sought-after destinations for ambitious, entrepreneurial professionals to start and develop their own businesses. Through a licensing model, DSW Capital gives professionals the autonomy and flexibility to fulfil their potential.

Being part of the DSW Capital group brings support benefits in recruitment, funding and infrastructure. DSW Capital's challenger model attracts experienced, senior professionals, predominantly with a "Big 4" accounting firm or "Magic Circle" legal background, who want to launch their own businesses and recognise the value of DSW Capital's brands and the synergies which come from being part of the network.

DSW Capital aims to scale its agile model through organic growth, geographical expansion, additional service lines and acquisitions. The Directors are targeting high margin, complementary, niche service lines with a strong synergistic fit with the existing network.