Knights eyes acquisition opportunities as revenue rises
Listed legal and professional services group Knights anticipates revenue to growth of 5.4% to c.£79.4m (H1 24: £75.3m) in trading update for the six months ended 31 October 2024.
The firm has also extended its revolving credit facility and says it has headroom to pursue more acquisitions.
The increase reflects a 3% profit margin to 18.4% (H1 24: 15.4%) and continued strong progression from 12.6% in H1 23. This strong first half performance underscores the Group’s confidence in delivering a full year performance in line with market expectations.
The Group has agreed with HSBC UK, AIB (GB) and NatWest to extend its revolving credit facility to provide total committed funding of £100m (an increase from the existing £70m) until November 2027 (extended by a year).
The extended facility provides Knights with “significant headroom” to execute its value-accretive acquisition strategy “as suitable opportunities arise”.
In September 2024, Knights acquired Thursfields Legal, a full legal services business with a national client base, significantly strengthening Knights’ presence in the West Midlands. The business is integrating well, and is performing in line with expectations, the firm said.
David Beech, CEO of Knights, commented: “It has been a strong first half and I am particularly pleased with our focus on profitable revenue growth. The continued improvement in margin reflects the increasing quality of our revenue, team and our continued focus on the cost base.
“We are encouraged by our strong momentum in recruitment which continues to build as Knights’ national scale and strong reputation are increasingly recognised. These factors, together with our ongoing focus on operational excellence, and early signs of a recovery in corporate and residential housing work, position us well for a strong performance in the second half in line with market expectations.”
The firm said that 23 senior professionals have joined Knights in the first half (H1 24: 20).
Knights will provide a further update on trading with its half year results announcement on 14 January 2025.
