Knights Professional Services Limited S172 (1) Statement

Active engagement with our shareholders supports the ongoing success of our business. The Board is committed to regular and transparent communication, ensuring that all shareholders are treated fairly, keeping them informed about our strategic direction and the performance of the business. Regular updates on shareholder interactions and analyst insights are provided to the Board, along with presentations from corporate brokers that reflect investor perceptions.

During the year, the business has appointed an Investor Relations Officer who supports the CEO and CFO in maintaining a well-structured programme to foster meaningful engagement with shareholders. Presentations are delivered to our largest shareholders and market analysts following both full and half-year results. The team also holds meetings with individual shareholders and potential shareholders throughout the year. The Annual General Meeting (‘AGM’) provides an opportunity for all shareholders to ask questions and to meet the Directors.

Our employees and their quality and commitment are pivotal. Therefore, the recruitment and retention of highly experienced colleagues is a key focus for the Directors. Our culture is a key focus in all strategic decisions, and the Board and management team are committed to ensuring an open and supportive environment where colleagues can develop and thrive.

To maintain ongoing engagement, our CEO, management team, Client Services Directors and Business Services Directors hold regular meetings and office visits to connect with colleagues and discuss key business drivers. Throughout the year, additional Client Services Directors have been engaged to allow managers to focus more closely on supporting their colleagues, encouraging an open and honest culture where all employees are treated fairly.

The Group has also invested in its Knowledge and Learning & Development teams, providing regular training and collaboration sessions to enhance ongoing support. The Board meets with management via presentations at Board and Committee meetings to address challenges and opportunities relating to business strategy and stakeholders.

The Group continues to work with its regulator, the Solicitors Regulation Authority (‘SRA’), and its complaints handling body, the Legal Ombudsman, to ensure that it abides by its professional and regulatory duties and obligations in an open and transparent manner. The Board conducts regular regulatory compliance reviews, with a dedicated compliance section in every board pack to analyse client risks. Through the Management Team, the Board is in contact with the SRA and, as an AIM-listed company, the Group is in regular contact with its nominated adviser and the Financial Conduct Authority.

Nurturing our client relationships is at the heart of everything we do. We aim to deliver the best expertise and the highest service standards available to clients based in their location. From the boardroom to our front of house team, we are committed to understanding and supporting our clients’ evolving needs at every stage. Our CEO, Executive Board and Client Services Directors consistently prioritise regular engagement with both existing and prospective clients, ensuring strong, collaborative partnerships are maintained and deepened over time. Placing a strong emphasis on fostering these connections is fundamental to our approach and long-term growth strategy, driving the Group’s ongoing organic growth.

The Group’s procurement policy includes a commitment to sustainable procurement and mitigation against the risk of modern slavery, bribery or corruption anywhere in our supply chain. The Group also aims to conduct itself to the highest standards and pay all invoices promptly. Our collaborative approach ensures all parties have a shared long-term objective of working together, reducing risk, maintaining high standards of business conduct and delivering to specific time and cost parameters. The Board plays a key oversight role in relation to these policies.

Our ESG strategy is focused on adding value to the communities in which we operate and can be found here. Detailed updates on this strategy and associated programmes of work are regularly provided to the Board.

Our ESG strategy is focused on adding value to the communities in which we operate and can be found here. Detailed updates on this strategy and associated programmes of work are regularly provided to the Board.

The Group acquired four law firms during the year, providing additional scale, practice areas and presence in the South East and Cardiff. The acquisitions provide enhanced revenue generation and new platforms for organic growth which ‘in turn’ provide returns to shareholders in the longer term and enhanced employment opportunities as part of a wider Group.

Prior to completing the acquisitions, the Board considered the effects that the acquisitions would have on the Group’s gearing and creditors to ensure that executing the acquisitions would not adversely impact creditors’ interests. The Board, in conducting its due diligence, also considered how each acquisition would fit with the culture of the business and the long-term value creation strategy of the wider Group.

The Board declared an interim dividend of 1.94p per share in January 2026 and recommended a final dividend of 3.69p per share for the year ended 30 April 2026. In arriving at this decision, the Board considered both the cash position of the business and shareholders’ interests. The Board considered that the ‘business’s cash reserves’ were sufficient to ensure its continued ability to meet all its obligations, and its acquisition and investment strategy for the future.

The Group’s business plan is to drive sustainable growth in the long term, which is in the interests of all its stakeholders. The Board has given close consideration to this objective in establishing and approving the annual budget and taking measures to continue to maintain excellent levels of cash collection and lock-up days and to obtain the best interest rates achievable considering the wider economic environment.

Given the current macroeconomic climate, the Board has considered the impact of external factors on the Group’s financial performance and ability to deliver for its stakeholders. The Group has no over-reliance on any practice area, professional or individual client; has significant headroom in its banking facilities and therefore the Board considers the Group is well placed to continue to deliver a high standard of client service, maintain strong relationships with our suppliers while continuing to focus on minimising the environmental impact of the Group.