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DSW Capital shares surge 17% on sharp rise in earnings and revenue

Shares in DSW Capital PLC (AIM:DSW) jumped 17% after the professional services group weighed in strong top and bottom-line growth and gave a confident assessment of prospects.

Revenue for the year to March rose 61% to £25.8 million, while adjusted earnings before interest, tax, depreciation and amortisation nearly tripled to £1.76 million.

The growth was driven by a surge in mergers and acquisitions activity and the contribution from DR Solicitors, which was acquired during the year and added £470,000 to earnings. Average revenue per fee earner rose to £214,000, up from £153,000 a year earlier, while the number of fee earners increased to 136.

Chief executive Shru Morris, who took over in April, said it was a strong first trading update. The board expects to reduce reliance on M&A income in the year ahead.

DSW Capital runs a national network of professional services firms under brands including Dow Schofield Watts and DR Solicitors.

The shares rose 10.45p to 61.45p.