Knights takes professional services role
CHESTER-based professional services firm Knights has incorporated and transferred its business from an LLP structure to become Knights Professional Services Limited.
Since becoming the first UK law firm to attract private equity investment in 2012 and being granted an ABS license in January 2013, Knights has doubled its revenue and improved profitability.
Knights chief executive David Beech said the switch from LLP to Limited Company will aid with continued financial investment into the business.
“We have significantly increased revenue and profitability which has allowed us to reinvest in the business to fund new technology, recruitment and acquisitions, as part of our continued growth,” he said.
“When retaining profits, the tax regime for a limited company is much better than for LLPs allowing more cash to be invested in our business.”
Running a business profitably and re-investing profits for the future is normal good business practice but unusual for the LLP model operated by many law firms, where profits are generally shared out between the partners as opposed to being re-invested in the business.
Knights’ unique business model allows for significant internal investment and as such the firm has recruited an average of one professional per week over the last 12 months and increased services across its three offices in Newcastle-under-Lyme, Cheltenham and Chester.
“Over the last three years we have modernised the way in which we deliver professional services,” said Beech.“These improvements have been welcomed by our people and clients.
“Our vision is to become a top 100 professional services firm by 2017.”