DSW CAPITAL PLC

Earnings Release • Nov 24, 2025

National Storage Mechanism | Additional information

RNS Number : 6107I

DSW Capital PLC

24 November 2025

24 November 2025

HALF YEAR RESULTS

Network Revenue up 32% with continued Fee Earner growth

DSW Capital, a profitable, mid-market, challenger professional services platform and owner of the Dow Schofield Watts and the DR Solicitors brands, is pleased to announce its half year results for the six-month period ended 30 September 2025 ("H1 FY26" or the "Period"), delivering strong growth in revenue and adjusted EBITDA, underpinned by continued expansion in fee earner numbers, reinforcing its scalable platform model and long-term growth strategy.

The Board is pleased to confirm that trading remained resilient and in line with management expectations, reflecting the strength of our diversified portfolio and ability to generate sustainable returns while investing for future growth.

Financial highlights

·	Adjusted EBITDA rose significantly to £0.7m (H1 FY25: £0.1m), reflecting a full six-month contribution from DR Solicitors, acquired in November 2024
·	Network Revenue increased by 32% to £10.3m, driven by the acquisition of DR Solicitors, and growth within existing DSW licensee businesses
·	Cash conversion was strong, with cash at 30 September 2025 of £2.2m after a £1m loan repayment of the £3.0 million OakNorth Bank revolving credit facility
·	Strong balance sheet with net assets of £10.2m (FY25: £10.0m)
·	Intention to maintain progressive dividend policy - interim dividend of 1.2p per share declared, representing an increase on the prior year from 1.0p

Operational highlights

·	Fee Earners up 29% YoY to 144 at the Period end (H1 25: 112), with 49 Partners across 24 businesses supporting the continued revenue growth of the group
·	Better balance of fee generation, with 32% weighted towards M&A in H1 FY26 (H1 25: 67%), following acquisition of DR Solicitors in November 2024
·	New corporate legal team, specialising in dental and pharmacy, added to DR Solicitors in October 2025
·	Number of Fee Earners using the DR Solicitors platform increased to 26 at the Period end, up from 20 on acquisition
·	36 award nominations across the Network and Dow Schofield Watts ranked as the UK's 12th most active corporate finance advisor in H1 FY26, according to Experian MarketIQ
·	Head of Recruitment appointed in August 2025 to bring top talent to the DSW platform

Current trading and outlook

·	The Group's financial results are typically weighted towards the second half of the year
·	DSW Capital is now a more diversified and resilient business, with significantly reduced reliance on M&A activity
·	The business continues to trade well but the Board remains mindful of ongoing geo-political and economic uncertainties, particularly regarding the forthcoming Budget
·	The Board remains firmly focused on: -      Driving sustainable growth -      Expanding the network of fee earners -      Delivering strong results for all stakeholders

Shru Morris, Chief Executive Officer, said:

"Firstly, I would like to thank all our licensees for their continued commitment to DSW and their contribution to a good set of results. We are encouraged by the Group's performance in the first half of the year, which demonstrates the resilience, scalability, and potential of our platform. The integration of DR Solicitors has gone well. We continue to experience strong demand for our services across key sectors, with annual consultant growth exceeding 30 per cent and the recruitment of a new Corporate Legal team specialising in Dental and Pharmacy work.

"Whilst we, as a board, are ever mindful of the potential for market disruption which may result from the current geo-political and economic uncertainty, we are confident in the prospects for our businesses and our strategy to build shareholder value over the long term. Our focus remains firmly on driving sustainable growth, expanding our network of fee earners, and delivering results for all our stakeholders."

Online Investor Presentation

The management team will host an online H1 25 Results presentation on Wednesday 26 November 2025 at 4.30pm. Anyone wishing to join the presentation should register with Investor Meet Company at https://www.investormeetcompany.com/dsw-capital-plc/register-investor.

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

Enquiries:

DSW Capital Shru Morris, CEO James Dow, Executive Director Pete Fendall, CFOO	Tel: +44 (0) 1928 378 100
Shore Capital (Nominated Adviser & Broker) James Thomas/Mark Percy/George Payne (Corporate Advisory) Guy Wiehahn (Corporate Broking)	Tel: +44 (0)20 7408 4090
Rawlings Financial PR Limited Cat Valentine	[email protected] Tel: +44 (0) 7715 769 078

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 140 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.

CHIEF EXECUTIVE OFFICER'S STATEMENT

I am pleased to report on the Group's results for six months to 30 September 2025. The first half of FY26 was a period of strong progress for DSW Capital. Trading remained resilient and in line with management expectations, with the Group delivering robust revenue growth, improved profitability, and maintaining a strong balance sheet. Our strategic focus on the expansion of legal services and the optimisation of our licensing model continues to underpin our performance. The integration of DR Solicitors, acquired in November 2024, has been a key driver of growth and diversification.

Network Revenue in H1 FY26 was £10.3m (H1 FY25: £7.8m), resulting in Total Income in the Period of £2.8m (H1 FY25: £1.1m) and Adjusted EBITDA of £0.7m (H1 FY25: £0.1m).

Cash at the half year end was in line with management expectations at £2.2m (30 September 2024: £2.3m), reflecting strong operating cash conversion of 133% for the Period and a £1.0m repayment of the £3.0m OakNorth Bank revolving credit facility in June 2025, which was obtained to partially fund the acquisition of DR Solicitors.

These results are driven by the success of our excellent licensees and colleagues and the Board thanks everyone for their resilience, hard work, and commitment to DSW and the DR Solicitors brands.

To continue building and strengthening our business, we centred our recruitment strategy in the Period on organic growth and the expansion of the number of consultants on the DR Solicitors platform. We achieved annual consultant growth of over 30% and, in October 2025, we successfully onboarded a new Corporate Legal team specialising in dental and pharmacy law, diversifying our healthcare offering and increasing our headcount.

Our priority remains the creation of shareholder value through sustained Fee Earner growth, and our progress is clearly demonstrated below:

	FY24	H1 FY25	FY25	H1 FY26
Partners	50	49	51	49
Employees	57	63	66	71
Consultants	-	-	19	24
Total Fee Earners	107	112	136	144

Vision and strategy

We are delivering on our vision to empower professionals to start and grow their own businesses. Our strategy is to scale the Group through organic growth, the addition of new service lines, and expansion of our geographic footprint, complemented by selective acquisitions where there is a clear strategic fit.

We operate in a large and growing mid-market professional services sector, which presents significant opportunities to capture market share through our differentiated, partner-led model.

Partner recruitment remains a strategic priority as traditional equity partnership models in professional services face increasing pressures and private equity continues to reshape the competitive landscape; an opportunity DSW Capital is well positioned to seize. To accelerate this, we have introduced our Pathway to Partner programme, a career-enhancing initiative designed for senior professionals and Directors, enabling them to progress rapidly towards partnership and hope to create a strong pipeline of future leaders under the Dow Schofield Watts brand.

The number of Fee Earners in the Network is now 144, a 76% increase since our IPO in December 2021. The acquisition of DR Solicitors has contributed significantly to our progress and the integration of this business onto our platform is going well.

The Group continues to experience strong demand across key service lines. Annual consultant growth exceeded 30% and, in October 2025, we welcomed the addition of a new Corporate legal team, specialising in dental and pharmacy work, strengthening our healthcare legal offering.

Our ability to convert growth into profitability and cash generation underscores the strength and scalability of business model. The acquisition of DR Solicitors has broadened our service offering and strengthened our platform, positioning us to capture a greater share of the mid-market professional services sector. Building on this foundation, we are opening the platform to consultants who bring their own client work and teams seeking to establish their own businesses, creating new revenue streams and accelerating growth through a more flexible approach to recruitment.

People

It is an honour to lead this business, as I have since April 2025, and to succeed James Dow, Executive Director and Co-Founder of a pioneering brand that supports entrepreneurship and offers a viable and distinguished alternative for top-quality professionals in the UK.

From 1 January 2026, James will transition to the role of Non-Executive Director. James has played a pivotal role in the firm's success since he founded it and remains an outstanding ambassador for both DSW and the Pandea Networks. I would like to express my sincere thanks to him for his unwavering support and invaluable counsel, helping me succeed in my new role.

Dividend 

We maintain a robust cash position with cash balances of £2.2m and the Board is pleased to declare an interim dividend of 1.2p per share. The interim dividend will be paid on 16 January 2026 to shareholders on the register on 12 December 2025, with the shares going ex-dividend on 11 December 2025.

The year-on-year dividend increase underscores our confidence in the Group's medium-term growth prospects and reinforces our commitment to delivering sustainable returns through a progressive dividend policy.

Current trading and outlook 

The Group's strategic aim is to build a resilient and diversified group of licensee businesses, as demonstrated by the acquisition of DR Solicitors in November 2024. Following this acquisition, the Group's dependency on M&A activity reduced significantly and in line with management expectations, with M&A as a percentage of Network revenue at 32% in the Period, compared to 67% in H1 FY25.

The Group's results are typically weighted towards the second half of the financial year, due to the timing of profit share income recognition and traditionally heightened M&A activity ahead of the tax year-end.

While mindful of geo-political and economic uncertainties, particularly around the upcoming Budget, the Group remains financially strong, with robust cash generation, a scalable model, and a limited fixed cost base. We remain committed to delivering sustainable growth and long-term shareholder value and confident in the Group's prospects over the long term. 

Shru Morris

Chief Executive Officer

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six month period ended 30 September 2025

		6 months ended 30 Sept 2025		6 months ended 30 Sept 2024
	Note	£'000		£'000
Continuing operations
Revenue	6	2,788		1,088
Cost of sales		(601)		-
Gross profit		2,187		1,088
Share of results of associates		8		9
Share of results of jointly controlled entity		(3)		37
Administrative expenses		(1,877)		(1,144)
Operating profit / (loss)		315		(10)
Finance income		95		125
Finance costs		(173)		(14)
Profit before tax		237		101
Income tax		(97)		(35)
Profit for the half-year		140		66
Total comprehensive income attributable to owners of the Company		140		66
Earnings per share
From continuing operations
Basic	4	£0.006		£0.003
Diluted	4	£0.005		£0.003

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the six month period ended 30 September 2025

	Note		As at 30 Sept 2025		As at 31 March 2025
			£'000		£'000
Non-current assets
Intangible assets			6,760		6,952
Property, plant and equipment			243		297
Lease receivable			3		31
Investments	9		1,512		1,507
Investments in associates	9		80		182
Interests in jointly controlled entities	9		40		73
Prepayments and Accrued Income	10		728		744
			9,366		9,786
Current assets
Trade receivables	10		1,200		1,354
Prepayments and Accrued Income	10		689		839
Other receivables	10		564		763
Lease receivable			53		50
Cash and bank balances			2,240		2,683
			4,746		5,689
Total assets			14,112		15,475
Current liabilities
Trade payables			418		499
Other taxation			326		410
Other payables			44		71
Accruals and Deferred Income			320		553
Current tax liabilities			106		202
Lease liability			137		162
			1,351		1,897
Net current assets			3,395		3,792
Non-current liabilities
Bank loan			1,824		2,771
Deferred tax provision			607		649
Lease liability			4		58
Dilapidation provision			87		85
			2,522		3,563
Total liabilities			3,873		5,460
Net assets			10,239		10,015
Equity
Share capital			63		63
Share premium			5,268		5,268
Share-based payment reserve			510		575
Merger reserve			1,738		1,738
Retained earnings			2,660		2,371
Total Equity attributable to owners of the Company			10,239		10,015

The interim statements were approved and authorised for issue by the Board of Directors on 21 November 2025 and were signed on its behalf by Pete Fendall, Chief Finance and Operating Officer.

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six month period ended 30 September 2025

	Share capital	Share premium	Share-based payments reserve	Merger reserve	Retained earnings	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 April 2024	55	5,268	498	-	1,767	7,588
Profit for the half-year	-	-	-	-	66	66
Dividends	-	-	-	-	(161)	(161)
Share-based payments	-	-	52	-	-	52
Issue of shares in period	-	-	-	-	-	-
Balance at 30 Sept 2024	55	5,268	550	-	1,672	7,545
Profit for the half-year	-	-	-	-	918	918
Dividends	-	-	-	-	(246)	(246)
Share-based payments	-	-	52	-	-	52
Issue of shares in period	8	-	-	1,738	-	1,746
Reserve transfer	-	-	(27)	-	27	-
Balance at 1 April 2025	63	5,268	575	1,738	2,371	10,015
Profit for the half-year	-	-	-	-	140	140
Dividends	-	-	-	-	-	-
Share-based payments	-	-	84	-	-	84
Reserve transfer	-	-	(149)	-	149	-
Balance at 30 Sept 2025	63	5,268	510	1,738	2,660	10,239

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

For the six month period ended 30 September 2025

		6 months ended 30 Sept 2025		6 months ended 30 Sept 2024
	Note	£'000		£'000
Profit for the half-year		140		66
Adjustments for:
Income tax expense		97		35
Net finance costs / (interest income)		78		(111)
Depreciation of property, plant and equipment		82		78
Amortisation of intangible assets		193		22
Share-based payment expense		84		52
Operating cash inflows before movements in working capital		674		142
Decrease / (Increase) in trade and other receivables		514		(215)
Decrease in trade and other payables		(425)		(166)
Decrease in amounts owed from associates and jointly controlled entities in relation to profit share		135		60
Cash generated in / (used by) operations		898		(179)
Income taxes (paid) / received		(236)		9
Net cash inflow / (outflow) from operating activities		662		(170)
Investing activities
Purchases of property, plant and equipment		(27)		(32)
Net cash used in investing activities		(27)		(32)
Financing activities
Loan financing repaid		(1,000)		-
Dividends paid	8	-		(161)
Lease payments		(87)		(90)
Lease receivable amounts received		28		32
Interest (paid) / received		(19)		120
Net cash used in financing activities		(1,078)		(99)
Net decrease in cash and cash equivalents		(443)		(301)
Cash and cash equivalents at beginning of half-year		2,683		2,632
Cash and cash equivalents at end of half-year		2,240		2,331

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL INFORMATION

1. General Information

DSW Capital plc, registered as a public company in England and Wales, with registered number: 07200401. The principal activity of the Company and its subsidiaries, DSW Services LLP, DSW Operations Limited and DR Solicitors Limited (together referred to as the 'Group') is the licensing of the Dow Schofield Watts and associated brand names for use in the professional services sector, whilst providing legal services under the DR Solicitors brand name.

The address of the Company's registered office is:

7400 Daresbury Park

Daresbury

Warrington

WA4 4BS

The interim condensed consolidated financial information is presented in Pounds Sterling (£), which is the currency of the economic environment in which the Group operates. All amounts are rounded to the nearest thousand (£'000) except when noted.

2. Basis of preparation

This condensed consolidated interim financial information for the 6 months to 30 September 2025 has been prepared in accordance with IAS 34 'Interim financial reporting' and also in accordance with the measurement and recognition principles of UK adopted international accounting standards. It does not include all of the information required for full annual financial statements and should be read in conjunction with the Annual Report and Accounts for the year ended 31 March 2025. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors reported on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. This condensed consolidated interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.  The Interim Report has not been audited or reviewed in accordance with the International Standard on Review Engagement 2410 issued by the Auditing Practices Board.

Significant Accounting Policies

The accounting policies used in the preparation of the interim financial information for the six months ended 30 September 2025 are in accordance with the recognition and measurement criteria of UK Adopted International Accounting Standards and are consistent with those which were adopted in the annual statutory financial statements for the year ending 31 March 2025.

Use of estimates and judgements

There have been no material revisions to the nature of estimates and judgements of amounts reported in prior periods.

Going concern

The interim financial information has been prepared on a going concern basis as the Directors have reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.

In considering the appropriateness of the going concern basis of preparation, the Directors have considered the cash balance and the forecasts for the next twelve months following the date of this report, which includes detailed cash flow forecasts and working capital availability. These forecasts show that sufficient resources remain available to the business for the foreseeable future in order to meet its operational and financial obligations as they fall due.

The Group has a significant cash balance of £2.2m, has a model which is strongly cash generative and a limited fixed cost base. At 30 September 2025, the Group has net assets of £10.2m (March 2025: £10.0m) and net current assets of £3.4m (March 2025: £3.8m) which reflects the strong financial position for the Group. In addition, the Group is profitable with adjusted EBITDA of £0.7m in the 6-month period to 30 September 2025.

The Group has prepared detailed cash flow forecasts and stress-tested various scenarios, all of which indicate that the Group will maintain adequate liquidity throughout the forecast period. Furthermore, the Group remains in full compliance with all financial covenants associated with its borrowing facilities. Based on current forecasts and financial performance, management expects to continue to meet these covenants for the foreseeable future.

Accounting Developments

In the current year, the Group has applied a number of amendments to IFRS accounting standards issued by the International Accounting Standards Board (IASB) that are mandatorily effective for an accounting period that begins on or after 1 January 2025. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements.

Amendment to IAS 21	The Effects of Changes in Foreign Exchange Rates

3. Adjusted PBT

Adjusted PBT is utilised as a key performance indication for the Group and is calculated as follows:

		Six months ended 30 September 2025		Six months ended 30 September 2024
		£'000		£'000
Profit before tax		237		101
Share based payments		84		52
Amortisation of intangible assets recognised on acquisition accounting		172		142
Adjusted PBT		493		295

4. Earnings per share

From continuing operations

The calculation of the basic and diluted earnings per share is based on the following data:

		Six months ended 30 September 2025		Six months ended 30 September 2024
Earnings		£'000		£'000
Earnings for the purposes of basic earnings per share being net profit attributable to owners of the Company		140		66
Effect of dilutive potential ordinary shares:		-		-
Earnings for the purposes of diluted earnings per share		140		66
		Six months ended 30 September 2025		Six months ended 30 September 2024
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per share		25,131,108		21,414,175
Effect of dilutive potential ordinary shares:
Shares held in EBT		402,895		512,185
Weighted average number of ordinary shares for the purposes of diluted earnings per share		25,534,003		21,926,360

From continuing operations

		Six months ended 30 September 2025		Six months ended 30 September 2024
Earnings		£		£
Basic earnings per share		0.006		0.003
Diluted earnings per share		0.005		0.003

Adjusted earnings per share is included as an Alternative Performance Measure ('APM') and is not presented in accordance with IAS 33. It has been calculated using adjusted earnings calculated as profit after tax but before:

·     Share-based payments expense

The calculation of adjusted basic and adjusted diluted earnings per share is based on:

		Six months ended 30 September 2025		Six months ended 30 September 2024
		£'000		£'000
Profit after tax on continuing operations		140		66
Adjusted for:
Share-based payment expense		84		52
Amortisation of intangible assets recognised on acquisition accounting		172		142
Adjusted earnings for the purposes of adjusted basic and adjusted diluted earnings per share		396		260
		Six months ended 30 September 2025		Six months ended 30 September 2024
Earnings		£		£
Adjusted basic earnings per share		0.016		0.012
Adjusted diluted earnings per share		0.016		0.012

Shares held in trust are issued shares that are owned by the Group's employee benefit trusts for future issue to employees as part of share incentive schemes. The future exercise of the share awards and options is the dilutive effect of share awards granted to employees that have not yet vested, and shares held by the group's employee benefit trust.

Shares held in trust are deducted from the weighted average number of shares for basic earnings per share. For its adjusted basic measure, the Group uses the weighted average number of ordinary shares.

5.Profit for the year

Profit for the year has been arrived at after charging/(crediting):

		Six months ended 30 September 2025		Six months ended 30 September 2024
		£'000		£'000
Depreciation of property, plant and equipment		82		78
Amortisation		193		22
Employee pension		11		5
Expected credit loss - licence fees		-		7
Expected credit loss - outstanding loans		-		-
Expected credit loss - profit share		-		(7)

6. Revenue

The disclosure of revenue by product line is consistent with the revenue information that is disclosed for each reportable segment under IFRS 8.

Disaggregation of revenue

		Six months ended 30 September 2025		Six months ended 30 September 2024
		£'000		£'000
External revenue by product line
Licence Fee Income		1,259		1,081
Profit Share Income		1		7
Legal Fee Income		1,528		-
Total Revenue		2,788		1,088

A further breakdown of revenue by reporting line is shown below:

		Six months ended 30 September 2025		Six months ended 30 September 2024
		£'000		£'000
External revenue by reporting line
Licence fees attributable to Mergers & Acquisitions (M&A)		892		722
Licence fees attributable to Other		367		359
Profit share attributable to M&A		1		7
Legal fee income		1,528		-
Total Revenue		2,788		1,088

7. Taxation

Tax for the period is charged at 25% (6 months ended 30 September 2024: 25%; year ended 31 March 2025: 25%), representing the best estimate of the average annual effective tax rate expected for the full year, applied to the pre-tax income of the 6 month period.

8. Dividends

The final ordinary dividend for the year ended 31 March 2025 of £0.02 per share, as proposed in the 31 March 2025 financial statements and approved at the Group's AGM was paid on 1 October 2025.

In addition, since the end of the half-year the Directors have recommended the payment of an interim dividend of 1.20 pence per fully paid ordinary share. The proposed interim dividend was approved by the Board on 21 November 2025. The dividend will be paid on 16 January 2026 to shareholders on the register on 12 December 2025 with the shares going ex-dividend on 11 December 2025.

(ISIN: GB00BNG9H550 and TIDM: DSW.)

In accordance with IAS10 "Events after the Balance Sheet Date", these dividends have not been reflected in the Interim Report.

9. Investments

	Group		Group
	As at 30 September 2025		As at 31 March 2025
	£'000		£'000
Investment in Associates	80		182
Investment in jointly controlled entities	40		73
Other investments	1,512		1,507
Total Investments	1,632		1,762

The movement in Investment in Associates and Investments in jointly controlled entities is included in the cashflow statement as an increase in amounts owed from associates.

Where long-term loans are made to licensees, which are disclosed within "Other investments" above, the Directors of the Company have accounted for them as investments under IFRS 9. These loans are accounted for using the amortised cost method.

10. Trade and other receivables

	Group As at 30 September 2025		Group          As at 31 March 2025
	£'000		£'000
Trade receivables	1,380		1,534
Loss allowance	(180)		(180)
	1,200		1,354
Other receivables	993		1,192
Loss Allowance	(429)		(429)
	564		763
Prepayments and Accrued Income	1,430		1,596
Loss Allowance	(13)		(13)
	1,417		1,583
	3,181		3,700

Included in prepayments and accrued income are contract assets amounting to £721k (March 2025: £733k) due in greater than one year.

Other receivables are made up from loans due from licensees, and prepayments and accrued income relates to profit share due from licensees and contract assets. Amounts due from subsidiary undertakings, in other receivables on the company statement of financial position, are interest free and repayable on demand and have been classified as due in greater than one year.

Contract Assets

Amounts relating to contract assets, which are disclosed within prepayments and accrued income above, are balances that can be classified as incremental costs of obtaining a revenue contract. These include the breakout incentives which provide businesses with an initial free-cash injection, as well as the below-market element of loans offered to licensee businesses.

Amortisation is recognised on a straight-line basis over the life of the contract. The average remaining length of contract to which these assets relate is 20.5 years. In the period ended 30 September 2025, amortisation amounting to £7k was recognised within admin expenses (year ended 31 March 2025: £49k was recognised in admin expenses).

	As at 30 September 2025		As at 31 March 2025
	£'000		£'000
Contract assets
Breakout Incentives	323		330
Below Market Element of Loans to Licensees	422		428
	745		758
Current	24		25
Non-Current	721		733
Total Contract assets	745		758

11. Related party transactions

Balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.  Transactions between the Group and its related parties are disclosed below.

Related parties are those licensees where the Company is a member of the related LLP.

Revenue and Cost Recharges

Group entities entered into the following transactions with related parties who are not members of the Group. All entities other than DSW Investments 2 LLP are licensee businesses. DSW Investments 2 LLP is an entity owned by current shareholders.

	Six months ended 30 September 2025		Six months ended 30 September 2024
	Revenue and Cost Recharges		Revenue and Cost Recharges
	£'000		£'000
PHD Industrial Holdings	58		104
DSW Investments 2 LLP	(56)		(54)
Other investments	286		354
Totals	288		404

Other investments relate to routine and similar transactions which arose in the ordinary course of business, with DSW CF Leeds, DSW TS Leeds and DSW Business Recovery.

Amounts due from/to related parties

Group entities had the following balances, including loans to related parties, outstanding at period end with related parties who are not members of the Group:

	30 September 2025		30 September 2024
	Amounts due from/(to) related parties		Amounts due from/(to) related parties
	£'000		£'000
PHD Industrial Holdings	-		15
DSW Investments 2 LLP	(33)		(36)
Other investments	173		195
Totals	140		174

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