LONDON (ShareCast) - (Sharecast News) - Legal and professional service provider Knights Group reported first-half revenue of £59.7m in a trading update on Tuesday, representing year-on-year growth of 29%.
The AIM-traded firm said its underlying adjusted profit before tax was £7.6m for the six months ended 31 October, up 26% over the first half of the 2021 financial year, as it maintained its underlying profit before tax margin of 13%.

It said its cash conversion remained "excellent", as it maintained an "industry-leading" lockup of 99 days, underpinned by debtor days of 33, coming despite the integration of new recruits and recent acquisitions.

Net debt at period end totalled £23.1m, up from £21.1m at the start of the period, after £5.8m of acquisition consideration and related costs.

Operationally, Knights said its strong recruitment momentum had been maintained, with the group continuing to attract "high calibre talent", the majority from top-50 law firms.

The board said it had successfully integrated the acquisitions of Keebles and Mundays, strengthening its footprint in the Yorkshire and South East regions.

Since the period ended, Knights had further expanded its footprint with the acquisition of Archers, a full-service independent law firm operating in the Teesside area, with early signs indicating a "strong cultural fit" across the business.

The company said the acquisition provided a platform for further organic growth in the North East - a new region for Knights, and one currently undergoing "significant" public and private investment.

It said its recently-announced extended £60m revolving credit facility provided further flexibility to selectively execute on the firm's pipeline of acquisitions, in line with its strategy to become the leading legal and professional services business outside London.

"We are delighted to report another strong period of profitable growth, during which we have maintained the excellent discipline of financial management that is central to our culture," said chief executive officer David Beech.

"With continued momentum in recruiting, we look forward to the second half with confidence and we are well placed to continue to selectively execute acquisition opportunities to further strengthen our position in key legal services markets outside London."

Knights said it would provide a further update on trading with its half-year results on 11 January.

At 0928 GMT, shares in Knights Group Holdings were up 1.45% at 419p.

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