|
Knights Group Holdings PLC on Monday said acquisition related costs held back first half pretax profit masking an improved underlying performance. The Newcastle-under-Lyme, England-based legal and professional services company said pretax profit slumped to £2.4 million in the six months to October 31 from £9.0 million the year prior, due to an increase in acquisition related non-underlying costs. This resulted in higher one-off costs from the acquisitions and subsequent restructuring and cost consolidation processes, the firm explained. Reflecting this non-underlying costs ballooned to £11.6 million from £3.8 million the year prior. On an underlying basis, pretax profit grew 13% to £16.4 million from £14.6 million a year ago, although underlying pretax profit margin declined to 16% from 18%, reflecting higher payroll taxes, the impact of interest rate movements and planned investment in technology and AI. Underlying revenue jumped 30% to £103.2 million from £79.4 million, with a return to organic growth of 3%. Organic growth was supported by strong recruitment and improvement in retention, the firm said, with churn reduced to 9% from 20% the year before. The interim dividend was boosted 10% to 1.94 pence per share from 1.76p. Chief Executive David Knights said: ‘The first half has been a period of significant progress for Knights, as we firmly returned the group to organic growth, while continuing to scale the platform we have developed over many years.’ Shares in Knights Group rose 1.4% to 188.52p each in London on Monday morning. Looking ahead, Knights Group said the second half of the financial year has ‘started well, building on the momentum achieved in the first half.’ The second half will benefit from a full period contribution from recent acquisitions, leaving the company ‘confident in delivering a full year performance in line with market expectations.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
