DWF swings to annual loss as costs offset revenue

Wed, 21st Jul 2021

Legal business DWF swung to an annual loss as the cost of acquisitions offset an increase in revenue. For the year ended 30 April 2021, pre-tax losses were £30.6 million from a profit of £18.2 million year-on-year, while revenue was up 12% to £409 million. 'This statutory loss before tax is driven by £64.8m of adjusting items the majority of which are non-cash with just over 50% of this amount relating to the recognition of an expense that forms part of the purchase price of historical acquisitions,' the company said. 'The first two months of trading for FY22 have been strong, showing continued organic net revenue growth and gross margin development,' the company said. For 2022, Capex is expected to be up to £8 million. The company reinstated guidance for the medium term, forecasting revenue growth CAGR of between 6% and 7%, and a gross margin increase to between 53% and 54%. Story provided by StockMarketWire.com

FTSE 100 Latest