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Knights Group Holdings PLC on Monday reported a decline in profit during its most recent financial year, as acquisition-related expenses hurt the firm’s bottom line despite an increase in revenue. The London-based legal and professional services company said pretax profit for the year that ended April 30 was £12.3 million, falling 17% from £14.8 million a year earlier. This was partly driven by £11.5 million in non-underlying operating costs, which had increased 74% from £6.6 million the year before as a result of acquisition-related expenses. In addition, staff costs were 4.9% higher at £97.6 million from £93.0 million. Knights during the year acquired Thursfield Legal Ltd and IBB Law LLP, the latter of which was the company’s ‘largest acquisition to date’. Since the year-end, Knights has bought Birkett Long LLP and Rix & Kay LLP. The company also recruited 51 senior fee earners during the year, 28% more than the 40 recruited in financial 2024, ‘reflecting the appeal of our corporatised model’, it said. Revenue rose 8.0% to £162.0 million from £150.0 million. Underlying earnings before interest, tax, depreciation and amortisation improved 11% to £42.9 million from £38.7 million, with a margin of 26.5% against 25.8% the year prior. ‘Our proven strategy continues to deliver, as shown by our double-digit profit growth and enhanced margins during the year, despite ongoing macroeconomic challenges,’ said Chief Executive Officer David Beech. Knights declared a final dividend of 3.05 pence, up 9.3% on-year from 2.79p, which brought the total dividend also 9.3% higher on-year at 4.81p from 4.40p. Shares in Knights Group closed up 8.1% at 159.50 pence in London on Monday. The stock has risen 19% over the past year. Beech continued: ‘We have started the current financial year in line with our expectations and are well positioned to seize the opportunities presented by the structural trends in our industry. We are now benefitting from increased recognition of our differentiated proposition as a leading brand, which combines national scale and premium services with local presence and relationships. ‘We expect growth in FY26 to be supported by the momentum we have seen building through attracting and retaining high calibre professionals and clients, complemented by building on our strong acquisition track record, with an encouraging current pipeline of opportunities under consideration. ‘We, therefore, continue our focus on delivering profitable growth through the year and in the medium-term, as we build and extend our services across the UK.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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