- Legal business DWF lifted its dividend pay-out ratio and said that it had seen a 'strong' recovery in the fiscal first-quarter following an annual plunge in profit owing to the pandemic impact.

The company reported that revenue grew 20.3% in the first three months of FY21, driven by mid-single digit organic growth and contribution from acquisitions of RCD and Mindcrest.

Given the stronger-than-expected recovery in Q1 of FY21, the company pledged to increase the pay-out ratio to 90% for FY20, to allow a final dividend of 0.75p per share.

The update came as annual profit slumped on lower margins.

For the year ended 30 April 2020, pre-tax profit fell 39.6% to £18.2m on-year, while revenue rose 10.9% to £297.2m.

Gross margin fell 5.6% to 47.9%, as the 'COVID-19 revenue impact came too late in the year to be able to mitigate with cost savings,' the company said.

At 9:38am: [LON:DWF] share price was +2.9p at 62.4p

Story provided by