Fast-growing law firm is set to launch on Stock Market in multi-million Pound float
A Manchester law firm that was once backed by Dragons’ Den entrepreneur James Caan is planning to float on the Stock Market.
Knights, who’s clients include a series of big names, unveiled plans for a float in excess of £100m on the Stock Market this morning.
The float will be the largest ever by a law firm in the UK.
Knighs roster currently includes supermarket Aldi, Rolls-Royce and bookmakers Paddy Power.
The Daily Telegraph has reported that the float on AIM will create an overnight fortune for David Beech, the chief executive of Knights who owns 65% of the firm.
A statement was issued on the Stock Market this morning.
David Beech said: “We have worked hard to build a resilient business model that is well-positioned to disrupt the UK legal sector and an AIM listing would enable us to continue with this journey, building on the strong momentum we have generated in recent years to become one of the UK’s leading regional law firms.
“I firmly believe that the old model for the legal sector is rapidly becoming redundant and, as pioneers in the sector following the group’s early adoption of the ABS structure in 2012, we are well placed to benefit from the continued trend of commercial clients demanding an ever more relevant and value-based service offering.”
Knights is a pioneer in the UK legal sector was one of the first commercial law firms to adopt the alternative business structure model, in order to move away from the traditional partnership model to a corporate structure in 2012.
For the year ended 30 April 2018, reported revenue was £34.9m and adjusted operating profit was £6.8m.
The group has approximately 7,500 clients with more than 70% repeat business from existing clients in the financial year ended 30 April 2018.
Knights has said it will continue to grow and is looking to recruit more than 200 additional fee earners.
It is looking to increase its offices from six to nine and complete at least another three acquisitions.
Part of the proceeds from the listing will be used to pay down the majority of the Group’s existing debt facilities, general working capital and corporate purposes.
Changes in the law in 2012 have seen a number of firms go public. One of the first was Gateley followed by Keystone and Gordon Dadds.
Knights is one of the fastest growing law firms in the region and has recently completed a number of acquisitions.
Most recently the firm announced it is to acquire Manchester firm Turner Parkinson.
The acquisition will increase Knights’ presence in the North West, adding 60 new employees in what will be its seventh regional office.
The acquisition is Knights’ fourth in five years. The acquisitions, alongside the group’s organic growth strategy, has seen Knights deliver topline growth at a compound annual growth rate of 32% over the past five years, making it one of the fastest growing professional services business in the UK.
The deal will increase Knights’ staff to over 500 people servicing 7,500 clients across the full spectrum of legal and professional services.
Knights, which traces its roots back to 1759, has offices in Chester, Cheltenham, Derby, Newcastle-under-Lyme, Oxford and Wilmslow.
