Law firm doubles profits after year of acquisitions

Revenues and profits at fast growing law firm Knights have soared, it announced this morning.

Knights says it expects its full-year results to 30 April to show revenue climbing by just over 50% to £52.4m, while profit before tax is likely to rise by 102% to £9.7m.

The news comes a year after the listed firm bought Manchester firm Turner Parkinson – one of four acquisitions during the year.

The firm now has offices in Manchester, Chester and Wilmslow.

The group performed well in the second half of its financial year, with strong organic growth complemented by contributions from acquisitions.

Cash conversion has been higher than normal, resulting in excellent cash generation and a year end net debt position of £14.1m, which is significantly better than market expectations of £17.8m.

The group’s strong organic growth was partly driven by a successful recruitment drive in the second half of the year, which added to the number of fee earners.

David Beech, chief executive of Knights, said: “We are pleased to announce this strong performance in our first full year as a listed company on AIM.

“We continue to deliver on our strategy, both organically and through selective acquisitions, resulting in strong, cash generative, profitable growth.

“Our successful recruitment drive and selective acquisitions during the year also provide us with a strengthened platform delivering high quality services through a results-driven and collaborative culture with more diversified expertise across a broader geographical base.

“We, therefore, look forward with confidence to the current year and beyond.”