Profits fall at law firm as Omicron blamed for staff absence
Underlying profits at Midlands law firm Knights have slipped, with the firm blaming the Omicron variant of the Covid 19 virus.
Profits were down by 2% to £18.1m for the year to April 30, with Knights citing “increased employee sickness and absence” during its “most significant” fourth quarter trading period.
Meanwhile, turnover rose during the period on the back of a succession of acquisitions in Yorkshire, the North East and East of England. While organic growth was modest at 2%, these deals saw revenues rise by a total of 22% to £125.6m.
Knights has also revealed a round of salary increases from May onwards, which it says will be offset by price increases.
David Beech, CEO, said: “Since the year end, we have been encouraged by the Group’s positive trading momentum, as we continue to realise the benefits of prior acquisitions. We have continued to strengthen the business through diversification and are confident of our resilience for the year ahead.
“We see significant opportunities for further high-quality acquisitions, as seen with the acquisition of Coffin Mew since the beginning of the new financial year. We are strongly placed for further organic growth, as we increasingly attract high calibre professionals with client followings and as we further extend our complementary services which align within our current offerings.
“While we acknowledge that uncertainty around economic conditions persists, we strongly believe that Knights remains well-positioned to meet any associated challenges with more resilience than ever. We remain confident in our ability to continue to execute our growth plans, further enhancing the group’s already strong position in key legal services markets outside London.”