Law Firms

Knights HY revenues rise 29% to £59.7m

The group said that over the period, four acquisitions completed in FY21 performed in line with expectations

Knights has announced that its revenue increased by 29% to £59.7m in the half-year ended 31 October 2021, up from £46.2m the prior year. 

Meanwhile, underlying PBT rose by 26% to £7.6m, and the firm welcomed an “exceptionally strong” cash conversion of 105%. 

The group said that over the period, four acquisitions completed in FY21 performed in line with expectations, with “good progress” reported across key metrics including the reduction of work in progress and debtor days.

It also welcomed the “successful” integration of Keebles and Mundays, which has strengthened its presence in Yorkshire and the South East. In addition, it entered the North East with the acquisition of Archers in Teesside, which completed in November.

The group also secured a new Revolving Credit Facility of £60m during the half-year period, which it said provides “further flexibility to selectively execute strategically compelling acquisitions”. It also became the first law firm to launch a Debt Advisory practice.

Looking ahead, the firm said it anticipates good trading in the second half, which will be against a stronger comparative, and it is “confident” in delivering a full-year performance in line with expectations.

David Beech, CEO of Knights, said: “We have delivered another strong period of profitable, cash generative growth, with our increased scale and national reputation as a premium provider attracting high calibre talent, quality work and acquisition targets across the regions.

“An increasing proportion of our new recruits are joining us from Top 50 law firms and we are actively reviewing a growing pipeline of acquisitions. Despite our recent organic growth and acquisitions, we have maintained our industry leading levels of debtor days, which is testament to the strength of our integration process and strong culture of cash collection.”

He added: “Our outlook for the medium term is positive with recruitment supporting good levels of organic growth, and with further acquisition opportunities. We continue to build on the critical mass we achieved last year, further cementing the strong position we have built in key markets for legal services outside London.”

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