DWF.L Share News (DWF)

(Alliance News) - Legal services firm DWF Group PLC on Wednesday reported a strong annual performance, in a year in which it listed on the London Stock Exchange.

DWF raised GBP95 million, more than originally planned, in its March initial public offering. It placed shares at 122 pence each, with shares up 1.4% Wednesday at 122.70p.

Net revenue for its year to April 30 was GBP272.4 million, 15% higher year-on-year, though pretax profit on a reported basis did fall 42% to GBP12.3 million. Organic revenue growth was 13%.

DWF's adjusted pretax profit increased 13% on the year before to GBP26.1 million. The reported figure fell due mainly from one-off IPO costs.

DWF is paying a 1.0 pence per share dividend for the period, having not paid one a year before. From its year ending March 2020, it will be targeting a payout of up to 70% of post-tax profit.

"These results mark the end of a milestone year for DWF, in which we became the largest listed full service legal business on the London Stock Exchange. I am pleased to report another strong period of revenue and profit growth for our maiden results post IPO, driven by an uplift across all four divisions, with International and Connected Services the standout performers," said Chief Executive Andrew Leaitherland.

"We have made significant progress against strategy, taking meaningful strides towards our medium-term targets, and expect our diversified and differentiated business model to continue driving long-term sustainable growth."

"We are committed to recruiting and retaining leading industry talent which is underpinning our broadened service offering and revenue growth," Leaitherland continued.

"Following a period of reduced M&A activity due to preparation for the IPO, we are maintaining discipline in identifying value-add acquisitions and associations to add scale, build on our sector expertise and develop our international presence."

All four divisions registered annual organic growth, DWF said, with Commercial Services and Insurance, the two main divisions, delivering 6% and 3% growth respectively.

The new financial year has begun well, the company continued, with performance meeting expectations.

"We have made a good start and are confident in the outlook for the full year," CEO Leaitherland added.