DWF Group PLC FY19 Trading Statement (8895A)
June 03 2019 - 1:00AM
UK Regulatory
TIDMDWF
RNS Number : 8895A
DWF Group PLC
03 June 2019
DWF Group plc
("DWF" or the "Company")
3 June 2019
FY19 Trading Statement
DWF, the global legal business providing complex, managed and
connected services, today issues the following trading update for
its financial year ended 30 April 2019, following the Company's IPO
on 15 March 2019.
DWF has continued to record strong revenue growth with FY19
revenue expected to grow by not less than 15%, delivering growth
across each of its divisions in line with the Company's medium term
targets. International has seen the strongest growth in the period
with revenue increasing by more than 70%, while Connected Services
saw growth in FY19 in excess of 20%. Insurance and Commercial
Services also delivered strong organic growth of in excess of 5%,
in line with guidance.
The Company's EBITDA margin (calculated on an adjusted proforma
basis)(1) was in line with management's expectations leading to
good profit growth, in absolute terms, year on year. This has been
driven from improvement in divisional gross profit margins and in
the cost to income ratio.
The Company's year-end net debt was in line with management's
expectations at GBP35.1m. This follows management's successful
actions in FY19 to improve cash collections. The Company is
therefore delivering good progress toward its medium term guidance
of an expected reduction of between 5-10 days in overall
lockup.
DWF increased its net partner headcount by 19 on a full-time
equivalent basis for the 12 months since 1 May 2018 through its
successful lateral partner hiring and promotion programme. The
Company also has a healthy potential lateral hire pipeline
demonstrating the attractiveness of its global platform to deliver
complex, managed and connected services, its remuneration model and
ability to offer equity participation across all career levels.
As detailed in its prospectus, the Company expects to pay a
full-year dividend of GBP3m, subject to shareholder approval, in
September 2019 and to pay further dividends thereafter in line with
its stated dividend policy.
The Company anticipates that it will announce its preliminary
full-year results on 31 July 2019.
Outlook
DWF has had a solid start to the new financial year and the
Company is confident that it will continue to deliver further
revenue and EBITDA growth in line with the Company's medium term
targets. The Company expects to deliver continued organic growth as
well as bolt on acquisition opportunities.
Andrew Leaitherland, CEO, commented: "This has been another year
of strong financial performance across our business, including good
organic growth rates in our insurance and commercial services
divisions and double-digit growth in Connected Services and
International, providing a firm foundation on which to begin life
as a public company. Our international business in particular has
shown extremely strong revenue growth. In this new financial year,
we have already built upon our success by delivering on an
international expansion opportunity highlighted in our prospectus,
through the transaction to acquire the legal services business of
K&L Gates Jamka in Poland. Since our IPO in March, we have also
further expanded in Australia through the acquisition of FT
Adjusting, a Connected Services business, and the hire of seven
principal lawyers from the Melbourne law firm, WARD Lawyers."
Note (1): Pro forma margin analysis based on an adjusted direct
cost measure, as if the Company had been a PLC with its revised
compensation structure for the full financial year, calculated
before exceptional items.
For further information:
DWF Group plc
James Igoe +44(0)20 7280 8929
Finsbury (public relations adviser to DWF)
Ed Simpkins, Charles O'Brien +44(0)20 7251 3801
About the Company
DWF is a global legal business providing complex, managed and
connected services, operating from 27 key locations with
approximately 3,200 people. The Company became the first Main
Market Premium Listed legal business on the London Stock Exchange
in March 2019. Pre-IPO, DWF recorded revenue of GBP236 million in
the year ended 30 April 2018. For more information visit:
www.dwf.law
Forward looking statements
This announcement contains certain forward-looking statements
with respect to the Company's current targets, expectations and
projections about future performance, anticipated events or trends
and other matters that are not historical facts. These
forward-looking statements, which sometimes use words such as
"aim", "anticipate", "believe", "intend", "plan" "estimate",
"expect" and words of similar meaning, include all matters that are
not historical facts and reflect the directors' beliefs and
expectations and involve a number of risks, uncertainties and
assumptions that could cause actual results and performance to
differ materially from any expected future results or performance
expressed or implied by the forward-looking statement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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