15 May 2026

DSW CAPITAL PLC

("DSW Capital", "DSW" or the "Group")

(AIM: DSW)

Trading Update and Notice of Results

Further to the statement issued on 16 March 2026, the board of DSW Capital, a profitable, mid-market, challenger professional services licence network and owner of the Dow Schofield Watts and DR Solicitors brands, today announces further details of the Group's performance in the year ended 31 March 2026 ("FY26" or the "Year").

Network Revenue is expected to be in line with revised expectations at £22.8m (FY25: £25.8m). As previously announced, this includes a full year of DR Solicitors, acquired in November 2024, which achieved double-digit growth of c.11%, on an annualised basis. This growth, however, was partially offset by lower M&A activity in the DSW Network. Total Income from Licensees for FY26 is also expected to be in line with revised expectations at £6.3m (FY25: £5.0m). Adjusted EBITDA is likely to be in line with revised market expectations at c.£1.6m, with Adjusted Profit Before Tax of c.£1.4m.

Cash reserves remain strong, with cash of £2.0m and net cash of £0.2m at 31 March 2026. This follows a £1.0m repayment of the £3.0m Oak North Bank revolving credit facility (fully drawn to help fund the acquisition of DR Solicitors) and dividend payments totalling £0.8m across the Year. Operating cashflow remains strong, with cash generated from operations of £1.8m, giving an operating cash conversion of c.105%.

While the Iran war has had an impact on M&A activity and recruitment, the Board remains confident in the Group's long-term prospects and continues to invest in growth and further revenue diversification through the recruitment of additional Fee Earners, expanding DR Solicitors' market share, and appointing consultants capable of originating work for the newly established DSW Legal division.

We have appointed a new Managing Director of DSW Legal and DR Solicitors, James Mallender. James will spearhead the next phase of platform growth and integration, to create a single, cohesive advisory platform under the DSW brand.

Notice of Results

The Group's final results for FY26 are expected to be announced on 28 July 2026.

Shru Morris, Chief Executive Officer, said:

"Whilst it is frustrating that the robust performance achieved in the early stages of FY26 stalled in the second half, 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, with M&A in FY26 accounting for 34% of Total Income, down from 57% in FY25.

Our FY27 focus will be on attracting additional licensees and consultants, driving new business at DR Solicitors, and launching DSW Legal. This new platform will offer top legal talent an attractive alternative career path, enabling them to build their own business under a recognised brand, supported by back‑office services, strategic guidance and start-up funding, replicating the success of our DSW licensee model.

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.

Operating Cash Conversion - Operating Cash Conversion is defined as cash generated by operations divided by Adjusted EBITDA.

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.