Shares of DSW Capital PLC (AIM:DSW) rose 27% following the acquisition of DR Solicitors, an established healthcare-focused law firm, for £6.1 million.
The move is expected to enhance DSW’s earnings and reduce its reliance on the cyclical mergers and acquisitions market.
DR, known for its services to UK primary care providers, reported revenues of £3.1 million and a profit before tax of £1.2 million in the 2024 financial year.
Co-founders Daphne Robertson and Nils Christiansen will continue to lead DR, backed by DSW’s management team.
The acquisition was funded through DSW’s reserves and a new £3 million credit facility.
In the update, DSW said it plans to maintain its progressive dividend policy, signalling confidence in sustained growth.
The shares rose 17p to 70p.