Knights, one of the UK’s fastest growing legal and professional services businesses, which has offices in Cheltenham and now Oxford, has reported “strong organic growth complemented by contributions from acquisitions.”
Revenue for the full year is expected to be not less than £52.4m — a 50.6% increase compared to 2018 and reflects 15% organic revenue growth. Adjusted PBT(1) is anticipated to be slightly ahead of market expectations at £9.7m, a 102% increase from the £4.8m reported for the full year ended 30 April 2018.
Cash conversion has been higher than normal, resulting in strong cash generation and a year end net debt position of £14.1m, which is significantly better than market expectations of £17.8m.
The Group’s strong organic growth during the year was in part driven by a successful recruitment drive in the second half of the year, which added to the number of fee earners.
During the year Knights made four acquisitions, including one of the leading independent law firms in Oxfordshire, BrookStreet des Roches, which completed last month.
David Beech, CEO of Knights, said: “We are pleased to announce this strong performance in our first full year as a listed company on AIM. We continue to deliver on our strategy, both organically and through selective acquisitions, resulting in strong, cash generative, profitable growth.
“Our successful recruitment drive and selective acquisitions during the year also provide us with a strengthened platform delivering high quality services through a results-driven and collaborative culture with more diversified expertise across a broader geographical base. We, therefore, look forward with confidence to the current year and beyond.”
(1) before amortisation; non-underlying costs relating to acquisitions, the implementation of associated cost savings and the group’s IPO; and share-based payment charges.