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Knights Group Holdings PLC on Monday reported a surge in both interim revenue and profit as it expects annual results to be in line with expectations.
It also announced the acquisition of a law firm.
Knights Group is a Newcastle-under-Lyme, Staffordshire-based legal and professional services.
For the six months that ended on October 31, revenue increased by 19% to £71.2 million from £59.7 million the year before. Pretax profit surged to £4.1 million from £848,000, Operating profit jumped to £5.7 million from £1.9 million the year before.
Chief Executive Officer David Beech said: ‘Knights has delivered profitable, cash generative growth over the period and maintained this positive momentum into the second half. We are delighted that our group is now the largest regional commercial law firm in the UK. The strength of the Knights brand, and our reputation as a trusted and quality adviser, underpins our ability to attract and retain top industry talent, high-quality clients and acquisition targets.’
Knights Group declared an interim dividend of 1.53 pence per share, up 4.8% from 1.46p a year prior.
Looking ahead, Knights Group said it is focussed on improving organic growth and will be ‘highly selective about acquisitions in order to secure the best opportunities in what we expect to be an expanding pipeline due to the economic cycle,’ it said. It is confident that it will deliver a full-year performance in line with expectations.
Net debt amounted to £35.6 million at period end, compared to £28.9 million on April 30.
Separately, Knights Group said it has bought Meade King LLP, an established, independent law firm in Bristol, for a total consideration of £2.1 million. It consists of an initial cash consideration of £1.5 million.
Beech added: ‘We are delighted to announce the acquisition of Meade King, a firm with a strong reputation and long history in Bristol. Founded in 1790, the firm, which has a strong cultural fit with Knights, provides the group with entry into the growing Bristol market and surrounding region. We are delighted to be entering a new market and scaling our operation as we cement our position as the leading legal and professional service business outside of London.’
For the financial year ended on April 30, Meade King reported revenue of £2.7 million and a corporatised profit before tax margin of about 5%.
Knights Group expects the acquisition to be immediately earnings enhancing.
Shares were down 3.1% at 120.18 pence each on Monday morning in London.
By Xindi Wei, Alliance News reporter
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