Fast-expanding Knights has posted a bullish half-year trading update and extended its £100m credit facility to fund fresh acquisitions.
For the period ended 31 October, the listed law firm expects to deliver a 30% increase in income from continuing operations to £103.2m and a return to organic growth of about 3%. Underlying pre-tax profit from continuing operations is forecast to come in 12% higher, at £16.4m.
The firm said this is ‘broadly in line with internal forecasts’, reflecting the absorption of higher payroll costs and technology investment.
Net debt is expected to total £75.2m at the period end (30 April 2025: £64.8m), after £15m in cash was paid for acquisitions and capital spending of £3.5m. Knights has extended until November 2028 its £100m revolving credit facility with HSBC UK, AIB (GB) and NatWest.
CEO David Beech said: ‘We have successfully integrated recent acquisitions while retaining our strong financial discipline across the business reflected in our strong cash generation. We expect the second half to benefit from recent hires and a full-period contribution from the recent acquisitions, underpinning our confidence in delivering a full-year performance in line with market expectations.’
Knights will publish its half-year results on 12 January. The company’s share price was unchanged in early trading at 171p.
Beech recently expressed the hope Knights could spread to as many as 50 locations as its breakneck expansion continues.
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