TIDMKGH
RNS Number : 1829T
Knights Group Holdings PLC
23 November 2021
23 November 2021
Knights Group Holdings plc
("Knights", the "Company" or the "Group")
Trading Update for the Six Months Ended 31 October 2021
Continued strong operational progress and robust cash
generation
Knights, one of the fastest growing legal and professional
services businesses in the UK, today provides a trading update for
the half year ended 31 October 2021. Highlights of which
include:
-- Revenue of c.GBP59.7m representing growth of 29% (H1 21: GBP46.2m)
-- Underlying adjusted PBT of c.GBP7.6m representing growth of 26% (H1 21: GBP6.0m)
-- Underlying PBT margin maintained at 13% (H1 21: 13%)
-- Cash conversion remains excellent
-- Industry leading lockup (1) of 99 days, underpinned by debtor
days of 33 despite integration of new recruits and recent
acquisitions
-- Net debt (2) as at 31 October 2021 of GBP23.1m (FY 21: GBP21.1m) after GBP5.8m of acquisition consideration and related costs
The Group has delivered another strong financial performance in
line with Board expectations, reflecting strong organic growth and
contributions from acquisitions integrated over the past year.
The strong recruitment momentum experienced in H1 21 has been
maintained, with the Group continuing to attract high calibre
talent, the majority from Top 50 law firms, who are attracted by
Knights' unique business model and collaborative culture.
The Group has successfully integrated the acquisitions of
Keebles and Mundays, strengthening the Group's footprint in the
Yorkshire and South East regions.
Post period end the Group further expanded its footprint with
the acquisition of Archers, a leading full-service independent law
firm operating in the Teesside area, with early signs indicating a
strong cultural fit across the business. The acquisition provides a
platform for further organic growth in the North East, a new region
for Knights and one currently undergoing significant public and
private investment.
The recently announced extended GBP60m Revolving Credit Facility
provides further flexibility for the Group to selectively execute
on its pipeline of acquisitions, in line with its strategy to
become the leading legal and professional services business outside
London.
Despite the continued growth, cash generation has remained
robust with industry leading lock-up and debtor days reflecting the
strong culture and discipline of day-to-day cash collection across
the Group.
David Beech, CEO of Knights, commented:
"We are delighted to report another strong period of profitable
growth, during which we have maintained the excellent discipline of
financial management that is central to our culture.
"With continued momentum in recruiting, we look forward to the
second half with confidence and we are well placed to continue to
selectively execute acquisition opportunities to further strengthen
our position in key legal services markets outside London."
Knights will provide a further update on trading with its half
year results announcement on 11 January 2022.
Ends
Notes
(1) Lock up excludes the impact of acquisitions in the last
quarter of the previous financial year, along with clinical
negligence, highway and ground rent WIP which operate mainly on a
conditional fee arrangement
(2) Excluding lease liabilities
Enquiries
Knights
David Beech, CEO Via MHP Communications
Numis (Nomad and Broker)
Stuart Skinner, Kevin Cruickshank 020 7260 1000
MHP Communications (Media enquiries)
Andrew Jaques, Katie Hunt, Rachel 020 3128 8100
Mann +44 (0)7736 464749
knights@mhpc.com
Notes to Editors
Knights is a fast-growing, legal and professional services
business, ranked within the UK's top 50 largest law firms by
revenue. Knights was one of the first law firms in the UK to move
from the traditional partnership model to a corporate structure in
2012 and has since grown rapidly. Knights has specialists in all
key areas of corporate and commercial law so that it can offer
end-to-end support to businesses of all sizes and in all sectors.
It is focussed on key UK markets outside London and currently
operates from 17 offices located in Birmingham, Cheltenham,
Chester, Crawley, Exeter, Leeds, Leicester, Maidstone, Manchester,
Nottingham, Oxford, Sheffield, Stoke, Teesside, Weybridge, Wilmslow
and York.
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END
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