Knights: ‘Year of step changes’ as firm posts double-digit profit growth
Yorkshire-based legal services firm Knights has posted double-digit profit growth as its CEO said the company had undergone a “year of step changes”.
Knights posted annual revenue of £162m for the year ending 30 April, an increase of eight per cent on the year prior, with underlying profit also up 11 per cent to £28m.
The company said the announcement builds on a “positive year of growth” in its home region of Yorkshire, where it made 80 new hires during the period. The past 12 months also saw the company establish a new Family team in Leeds and Sheffield.
David Beech, CEO of Knights, said: “Our proven strategy continues to deliver, as shown by our double-digit profit growth and enhanced margins during the year, despite ongoing macroeconomic challenges.
“This has been a year of step changes for the business, with strategic progress and a strengthened leadership team embedding enhanced operational discipline – all underpinning the Group’s platform for future growth.
“We have built strong recruitment momentum and reduced churn, while advancing our value-accretive acquisition strategy – including our largest acquisition to date in the second half – and continuing to win new clients.”
In September of last year, Knights announced that it had acquired West Midlands-based regional law firm Thursfields for £12.5m, in a move that added around 100 staff to its headcount.
Knights then announced in March of this year that it had acquired South East-based IBB Law, paying £21m upfront with a further £9m set to be paid in three further instalments.
The year saw the company bring in a total of 247 new staff to the group.
Knights currently holds a team of 159 staff across Leeds, Sheffield and York. It also employs around 1,350 staff across 32 locations nationally.
One of the firm’s biggest projects over the last year came in November, as the company worked as legal advisor on the £120m acquisition of Sheffield-based Clear Line by Fasadgruppen Group AB.
Knights posted net debt of £64.8m as of 30 April in its latest results, after £25.1m of acquisition consideration. The figure was up from £35.2m at the same time last year.
Mr Beech added: "We have started the current financial year in line with our expectations and are well positioned to seize the opportunities presented by the structural trends in our industry. We are now benefitting from increased recognition of our differentiated proposition as a leading brand, which combines national scale and premium services with local presence and relationships.
"We expect growth in FY26 to be supported by the momentum we have seen building through attracting and retaining high calibre professionals and clients, complemented by building on our strong acquisition track record, with an encouraging current pipeline of opportunities under consideration. We, therefore, continue our focus on delivering profitable growth through the year and in the medium-term, as we build and extend our services across the UK."