Knights, one of the UK's fastest growing legal and professional services businesses, today announces its maiden full year results for the year ended 30 April 2019.

Financial highlights

  • 51% increase in revenue growth to £52.7m (FY 2018: £34.9m)
    • 15% organic revenue growth
  • Underlying EBITDA grew by 51% to £11.3m (FY 2018: £7.5m)
    • Underlying EBITDA margin maintained at 21.5% (FY 2018: 21.5%)
  • Underlying PBT rose by 104% to £9.8m (FY 2018: £4.8m)
  • Underlying EPS increased by 55% to 11.88p (FY 2018: 7.68p)
  • Exceptionally strong cash conversion of 115%, up from 71% in 2018
  • Net debt of £14.1m as at 30 April 2019 was £3.7m lower than expected (30 April 2018: £26.3m)
  • Proposed final dividend of 1.27p, giving a total dividend of 1.87p

 Operational highlights

  • Successful AIM admission in June 2018 raised £28.1m net placing proceeds
  • Further organic growth and investment, coupled with enhanced productivity:
    • Increased average fees per fee earner by 22% to £131,000 (FY 2018: £107,000)
    • Successfully recruited a net 46 fee earners by year end
    • Reduced staff costs as percentage of revenue despite investment for future growth
    • Secured a modern, larger office to support expansion in Manchester
  • Acquired, integrated and derived planned synergy savings from four quality acquisitions:
    • Top corporate law firm by deal volume across the North-West, Turner Parkinson (June 2018)
    • Leading legal independent services business in Leicester, Spearing Waite (October 2018)
    • Leicester based quality employment specialist, Cummins Solicitors (January 2019)
    • Leading commercial law firm in Oxfordshire, BrookStreet des Roches (April 2019)
  • Strengthened Board and leadership team with Richard King appointed as Chief Operating Officer, Jane Pateman appointed as Non-Executive Director and senior appointments made in Compliance, HR and Sales

  • Agreed a new extended revolving credit facility of £27m until June 2023

Current trading and outlook

  • The Group has made a good start to the financial year, in line with our expectations

  • Confident of delivering further progress as we scale up the business:
    • Continue to realise the benefits of recent hires and acquisitions
    • Strengthened and diversified platform supports continued profitable growth
    • Strong momentum in recruitment has continued

  • Continue to selectively review a healthy pipeline of acquisition opportunities

David Beech, CEO of Knights, commented:

“I am delighted to report our first set of full year results as a listed business, in which we have delivered cash generative, profitable growth. Our strong organic growth, combined with four high quality acquisitions during the year, means we are now a more diversified business with strengthened positions in our key target markets.

“The Group has made a good start to the financial year and we have the team and financial resources in place to deliver our organic and acquisitive growth strategy as we scale up to be the leading legal and professional services business outside London.

“Our recent listing has already supported our ability to deliver that strategy by helping us to acquire four leading firms and we are now starting to see it benefit our ability to attract high calibre candidates into the business.”

A presentation of the full year results will be made to analysts at 9.30am today at Numis' offices. To register interest in attending, please contact Robert Collett-Creedy at MHP Communications on 020 3128 8147 or email knights@mhpc.com.

 Download the full press statement here.