Listed law firm Knights anticipates its half-year revenue increasing by a single digit as performance is in line with the board’s expectations.
The group expects its half-year revenue to increase to £75.3m, a 6 per cent jump compared to £71.2m recorded in the previous year. While its profit before tax is anticipated to have a better performance, as it is expected to increase by 28 per cent to £11.5m, up from £9m recorded the prior year.
Its net debt has slightly increased to £38.3m on 31 October 2023, up from £35.6m, this time last year. Knights attributed this to the several acquisitions it has made over the first half of the year.
Earlier this year, Knights acquired commercial law firm Meade King for £2.1m as the London-listed law. In May, the firm entered Carlisle and Lancaster after it acquired an independent law firm, Baines Wilson.
The group is also pushing on cash collection as its debtor days of 31 as of 31 October 2023, in line with the 32 days achieved as of 31 October 2022 and 30 days on 30 April 2023, with total lock-up improving to 93 days compared to 103 days at October 2022.
Knights will provide a further update on trading with its half-year results announcement in mid-January 2024.
Commenting on the results, David Beech, CEO of Knights said: “We continue to execute our strategy successfully, delivering profitable, cash-generative growth, while focusing on delivering a premium service.”
“Entering the second half, we are encouraged by the group’s strong performance, as we continue to attract high-quality, talented professionals, and monitor an attractive and growing pipeline of potential acquisitions for the group,” he added.
Knights share is trading at 94.6 p per share today.