Financial Highlights
We have continued to build on our historic strong track record of growth in both turnover and profitability over the past 5 years with a 51% increase in turnover and 104% increase in underlying Profit Before Tax (PBT). Our continued focus on management of cash flow has resulted in exceptional cash conversion of 115% for the year, resulting in net debt being lower than expected positioning the Group well to continue with its future growth strategy via recruitment and carefully selected acquisitions.
* Percentages are rounded to the nearest full number.
At a glance
Who we are
A fast growing legal and professional services business offering high-quality expertise across a full range of services.
Our strategy
To rapidly scale-up our proven business model by recruiting, acquiring and developing the best talent and businesses, who place clients at the heart of everything they do.
Growing top tier positions outside London
Offices
8Fee earners
520This year we entered the Manchester and Leicester markets with two acquisitions and significantly expanded in Oxford.
A full suite of services
High Client Satisfaction
(NPS)
Service line
Service
Real Estate
- Asset Management
- Construction
- Development
- Planning
Dispute Resolution
- Litigation
- Debt Recovery
- Employment
- Property Litigation
Corporate
- Commercial
- Mergers/Acquisitions
- Banking
Private Client
- Landed Estates
- Tax and Trusts
- Conveyancing
- Family
Sector specialisms and non legal services
I am delighted to introduce Knights’ first annual report as an AIM-listed entity.Chairman
After a successful track record under private ownership, becoming a public company was the next logical step for Knights to achieve its vision of creating the leading legal and other professional services business outside London.
Chairman’s Statement PDF 0.2Mb
It gives me great pleasure to report on a landmark year for Knights, our first as a public company.Chief Executive Officer
Knights has always done things differently: in 2012, we were the first organisation of our type in the UK legal sector to attract private equity investment, enabling us to move from the traditional partnership model to a corporate structure, creating a clear separation between management/ownership and fee earners.
CEO’s Statement PDF 0.23Mb
I am pleased to report that the Group performed well in its first year as a listed company.Chief Financial Officer
We have continued to build on our historic strong track record of growth in both turnover and profitability over the past 5 years with a 51% increase in turnover and 104% increase in underlying Profit Before Tax (PBT). Our continued focus on management of cash flow has resulted in exceptional cash conversion* of 115% for the year, resulting in net debt being lower than expected, positioning the Group well to continue with its future growth strategy via recruitment and carefully selected acquisitions.
CFO’s Statement PDF 0.38Mb * Percentages are rounded to the nearest full number.Our investment case
- Right blend of specialism and experience
- Flexibility to flow capacity to meet scale, speed and peak demands
- In tune to tailor advice to match clients wider commercial objectives and attitude to risk
- Deep client relationships deliver service clients trust
- Our down to earth, flexible and friendly culture fosters mutual trust
- Depth and breadth of trusted expertise in disciplines and industry sectors
- One provider for all services reduces client effort
- Cost base outside London (i.e. lower salaries and property costs)
- Lower overheads through use of technology
- Lower costs by flowing work to the right level of expertise for the task
- Early adopters of corporate structure instead of the partnership model in 2012
- Disruptive B2B business model: “People do what they do best”. Fee earners concentrate on client service. Professional managers run the business
- Diverse expertise in senior leadership and Board outside the legal sector
- Quality work and career opportunities with sustainable balance
- No financial risk; partners not exposed to the ownership risks of equity structures
- No politics or distractions, just a supportive environment to thrive in
- Attractive remuneration package with public listing providing great flexibility for all colleagues to own shares in the business
- Recruited 46 fee earners including 11 partners during the financial year
- Greater than 90% talent retention
- Serving over 10,000 clients with low client, sector and fee earner concentration
- Dominant player in most of our markets
- Consistent year on year double digit organic growth - 15% this fiscal year
- High client satisfaction: +69 NPS and >10 years average relationship for top 10 clients
- Delivered a 6 year revenue CAGR of 33% and adjusted profit before tax profit CAGR of 68%
- Targeted 75% cash conversion, exceptionally 115% this fiscal year
- Proven track record of acquiring then unlocking value from existing law firm structures
- Expert team fully integrates acquisitions; systems, processes and culture
- Knights Operating Platform enables rapid systems integration in under 2 months
- 4 successful acquisitions this year; 2 scaling existing locations, 2 new locations
Our business model
We do things differently:
We believe great service starts with high employee morale to drive the real teamwork that’s needed to best meet clients’ needs.
Competitive Advantage
Knights has four sources of competitive advantage, which we turn into results via our distinct business model which creates a virtuous cycle of ever-growing value.
1. Market Positioning
We are the dominant player in most of our chosen locations, offering high-quality services from a lower cost base outside London.
2. Team Based Culture
Culture is often referred to as a key ingredient of a successful business. At Knights we regard it as the primary driver.
3. Corporate Structure
We operate an Alternative Business Structure (ABS), rather than the traditional LLP law firm model that faces significant structural challenges over the medium term.
4. Scalable Operating Model
When creating the Knights model in 2012 we made a conscious decision to establish a consistent way of working across the business.
Our culture in our colleagues’ words:
Their lawyers are proactive, commercial and a pleasure to deal with. I know I can rely on them to get the job done efficiently and cost effectively. A key attribute is that the team understand our business and approach to risk and tailor their advice and its delivery accordingly. This provides real value and sets them apart from other legal services providers.Head of Real Estate, McDonald’s
Knights plc is my first and only port of call for employment law matters. Their advice, and the service that goes along with that advice is always first class, timely, and professional in every sense of that overused word.Group Chief Human Resources Officer Bet365
People Helping Others
A key differentiator for Knights is taking a team vs. the traditional Individual based approach to the provision of legal services. We passionately believe (backed up by results), that we can release the significant untapped potential in legal service professionals, by removing the high levels of personal stress and barriers to best serving clients, caused by the traditional industry model of measuring people’s contribution solely on the basis of individual targets. We create a positive and supportive environment to empower our talented conscientious professionals to be themselves and use their judgment to do what’s right.