DSW Capital PLC on Wednesday said revenue and pretax profit for the year to March 31 are expected to be in line with current market expectations.

In a trading update, the Warrington, England-based independent financial advisory firm stated network revenue is expected to be flat at £18.3 million as challenging market conditions persisted.

Earnings before interest, taxation, depreciation and amortisation is forecast to decline to £1.5 million from £2.2 million the year prior, reflecting additional planned investment in central resource.

Adjusted pretax profit is expected to reach £1.4 million compared to £2.0 million before.

Average revenue per fee earner slipped to £193,000 from £237,000 reflecting the softening of the M&A market.

Fee earners increased from 88 to 97 with five additions in the first half and a further four in October 2022.

With strong cash balances at the year-end of £4.6 million DSW is ‘significantly increasing its investment in recruitment and has a strong recruitment pipeline.’

‘As new fee earners settle into the business earnings are expected to return to growth,’ the company said.

James Dow, chief executive said: ‘While recent economic conditions have, undoubtedly, been frustrating for both the group and its stakeholders, we remain highly motivated and excited by the opportunities our business model creates.’

In a separate statement, the firm said it had entered into an updated trademark licence agreement with one of its licensees’, PHD Industrial Holdings Ltd.

Under the agreement, which replaces an existing trademark licence agreement, PHD IH, will continue to pay a fixed licence fee of £144,000 per year, payable quarterly in arrears.

A service contract whereby central costs are recharged on a per head basis of around £48,000 known as a ‘desk charge’, that will continue to be paid.

Shares in DSW closed 4.6% higher in London on Wednesday.

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