|
Knights Group Holdings PLC on Friday said it expects to deliver increased interim revenue and profit in line with full-year expectations, as it noted the expansion of its business. The Newcastle-under-Lyme, England-based legal and professional services company said it expects underlying pretax profit for the six months ended October 31 to increase 12% to £16.4 million from £14.6 million a year ago. This is to be driven by an expected 30% increase in revenue to £103.2 million from £79.4 million. The company noted it anticipates a return to organic growth of approximately 3%. The underlying pretax profit margin is expected to fall to 16% from 18%, which it attributed to absorbed higher payroll taxes and investment in AI and technology. Knights Group noted 46 senior fee earners joining in the first half or due to start shortly, compared to 43 a year ago. ‘The business has continued to scale up, having added substantial teams in the West Midlands, the Thames Valley, the South East, and a smaller team in Cardiff, through acquisitions all of which are performing in line with expectations and integrating well,’ the company said. Net debt is expected to increase 50% to £75.2 million from £50.1 million. The company said it signed an agreement with HSBC Holdings PLC, AIB Group PLC (UK) and NatWest Group PLC to extend its current revolving credit facility of £100 million until November 2028. Chief Executive David Beech said: ‘We expect the second half to benefit from recent hires and a full period contribution from the recent acquisitions, underpinning our confidence in delivering a full year performance in line with market expectations. ‘Having put in place an extended operational management structure, we are confident we have the right team to drive the business forward and leverage our strengthened platform as we continue to drive growth beyond the current financial year.’ Shares in Knights Group rose 1.5% to 173.50 pence on Friday afternoon in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
