Shares in DSW Capital PLC fell 21.6% on Monday after the professional services group released a trading update stating that the outbreak of war with Iran has materially curtailed merger and acquisition activity across the UK. The company said a number of deals that had been expected to complete in March were either cancelled or put on hold as clients wait for greater clarity on the long-term economic consequences of the conflict.
March is traditionally a key month for M&A closings ahead of the UK tax year end, and DSW’s statement highlighted the timing sensitivity of transactions that often cluster around that period. The interruption to deal flow prompted the group to lower its forecasts for the year ending March 31, 2026.
DSW now expects Total Income of approximately A36.2 million, Adjusted EBITDA of approximately A31.6 million, and Adjusted profit before tax of approximately A31.3 million for FY26. Those revised metrics reflect the impact of aborted and postponed transactions on the firm’s revenue pipeline.
Despite the slowdown in M&A, DSW emphasised that diversification into its DR Solicitors brand is delivering growth. The company reported that DR Solicitors has achieved revenue growth of approximately 11% in FY26 to date, underlining a strategic move away from sole dependence on transaction-related income.
On the balance sheet, DSW said it held cash of A31.4 million as of February 28, 2026, and reported Net Debt of A30.5 million. These figures follow a A31.0 million repayment on its A33.0 million OakNorth Bank revolving credit facility and A30.8 million in dividend payments made across October 2025 and January 2026.
The company reiterated that it remains profitable and cash generative despite current geopolitical and economic uncertainties. Management said the board continues to focus on building a resilient and diversified group of licensee businesses, pursuing additional licensees and consultants, and seeking further work for DR Solicitors.
DSW, which owns the Dow Schofield Watts and DR Solicitors brands, said it will publish a full trading update in May 2026. The near-term performance of the business will depend in large part on whether postponed transactions resume or remain delayed as clients evaluate the longer-term effects of the conflict on the UK market.