DWF shares soar on positive trading statement
By Frank Prenesti
Date: Thursday 09 Jul 2020
(Sharecast News) - Legal business DWF reported higher revenue and core earnings in the first two months of its financial year driven by acquisitions and cost cutting, boosting shares in the firm on Thursday.
The law firm said total revenue grew around 21% year-on-year and core earnings by £3m, boosted by the purchase of RCD in Spain and managed services business Mindcrest. DWF shares were up more than 10% in midday trade.
DWF said it now expected to make total cost savings of £15m in 2021, £10m of which was previously announced in March and an extra £5m of cost savings identified through a further review of the group's cost base. This would result in £18.5m of savings in 2022 at a full annualised run rate.
The company said it was cautiously optimistic about 2021 performance, though added that it was too early to make any firm predictions given the ongoing coronavirus pandemic which would make the economic impact remains "unpredictable".
"The group's connected division is delivering substantial growth, with revenues ahead by over 35% year-on-year, aided by increasing internal referrals and continued growth of its external profile,' the company said.
"The group's managed services offering will continue to build during the year, with appropriate workflows already being transitioned internally to this division and serviced more efficiently, which are expected to deliver margin benefits in 2022 and beyond," it added.
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