DSW Board remains confident in the long-term prospects for DSW and continues to add new partners and new licensee businesses to fuel future growth. While confidence in the long-term performance of the group remains unchanged, their board acknowledges the suppressed earnings in FY24 and has taken the decision to propose a reduced final ordinary dividend for the year ended 31 March 2024 of 0.75 pence per share, giving a total dividend for the year ended 31 March 2024 of 2.0 pence per share. Their board anticipates maintaining dividends at a reduced level until market conditions improve and earnings return to growth. An interim dividend of 1.25 pence per share in respect of the six months to 30 September 2023 was paid on 23 January 2024. If approved by shareholders, this will take total cumulative dividends that will be paid out to shareholders post-IPO to 9.98 pence per share.
Other financial highlights include:
- Network revenue of £16.0m (FY23: £18.3m), down 12.5% against a subdued SME M&A market backdrop
- Group revenue of £2.3m (FY23: £2.7m)
- Total income from licensees of £2.4m (FY23: £3.0m)
- Adjusted EBITDA of £0.6m (FY23: £1.5m)
- Adjusted pre-tax profit of £0.5m (FY23: £1.4m), reflecting lower levels of activity and continuing investment for future growth and expansion
- Statutory profit before tax of £0.2m (FY23: £0.7m)
- Earnings per share of 0.4 pence (FY23: 2.0 pence)
- Strong balance sheet:
- Cash balances at Period end of £2.6m (FY23: £4.6m) - following acquisitions of Bridgewood and STS Europe, and investment in new start up licensees
- Cash conversion for the period of 14% (FY23: 88%) - adjusting for the cost of investment in new start up licensees, cash conversion was 61%
- Net assets of £7.6m (FY23: £7.9m)
