First half profits at Alternative Investment Market-listed Knights jumped a healthy 29% in a rocky year for law firm consolidators, the company reported this morning.
In the six months to 31 October 2023, Knights Group Holdings reported underlying pre-tax profits of £11.58m, up 28.8% on the £8.99m reported for the same period in the previous year. Revenue rose 6% to £75.3m.
Describing the results as in line with expectations, David Beech, chief executive, said the company ’has delivered a good performance in the period, reflecting our sharp focus on driving profitability and organic growth and the resilience provided by our diversified services, capabilities and client base.’
The accounts reveal the prices paid for two acquisitions in May last year: St James Square Law Firm Limited for £190,000 and Baines Wilson LLP for £2.4m.
Beech said that, although the company’s focus for the year ahead is on organic growth, ’we are very much in the market for acquisitions’. Of a £70m revolving credit facility agreed in November 2023, £32m is still available, he said.
Predicted areas for organic growth include private wealth and corporate services, especially for US-based clients. ’We continue to expand our relationships with larger clients who increasingly recognise the benefits of Knights’ premium, diversified offering and collaborative, corporatised model,’ Beech said.
Shares in Knights Group Holdings plc rose 4.2% to 125p on the news, a level not achieved since January last year.
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