- Legal business group DWF reported lower profits in the first half of the year amid a change to its partner compensation model.

The company also announced that it had reached an agreement to acquire Spanish law firm Rousaud Costas Duran for up to €50.5m in a cash and shares deal.

The strategic acquisition would 'significantly expand DWF's international capabilities via offices in Madrid, Barcelona and Valencia and provide access to an extensive network of connections in the Iberian Peninsula and Latin America,' the company said.

The acquisition was expected to be completed by the end of the current and be earnings enhancing in its first full financial year post-completion, it added.

For the six months to 31 October, pre-tax profit fell to £4.7m from £5.3m on-year, while revenue increased 10% to £146.8m.

The reduction in profit from the prior period was due to a change in the partner compensation model with the prior period, which included a lower LLP-based direct cost.

'A material change on IPO was the move to a new partner compensation model and the method for accounting for partner costs in relation to partner drawings. The impact of these changes makes the fiscal 2019 partner compensation included in direct costs artificially low,' the company said.

'The first half results, investments made, and trading through November reinforce management's confidence in delivering expectations for the full year,' DWF said.

At 8:26am: [LON:DWF] share price was +0.05p at 120.55p

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