A listed firm in the UK is expecting profits to double in its first year as a public company.
In an update to the London Stock Exchange for the year ended 30 April, Knights said that profits are expected to be slightly more than market expectations at £9.7m. That’s a 102% increase from its £4.8m profit in the preceding year.
Knights, which said that it is one of UK’s fastest-growing legal and professional services business, said that the group performed well in the second half, buoyed by strong organic growth and acquisitions.
It said that turnover for the full fiscal year is expected to be not less than £52.4m, an increase of 50.6% on the year from £34.8m.
Knights said that its organic growth was partly because of a successful recruitment drive in the second half, which added fee earners and secured a strong pipeline of talent. The company also made four acquisitions during the year: Turner Parkinson, Spearing Waite, Cummins Solicitors, and BrookStreet de Roches.
“We are pleased to announce this strong performance in our first full year as a listed company on AIM. We continue to deliver on our strategy, both organically and through selective acquisitions, resulting in strong, cash generative, profitable growth,” said David Beech, Knights chief executive. “Our successful recruitment drive and selective acquisitions during the year also provide us with a strengthened platform delivering high quality services through a results-driven and collaborative culture with more diversified expertise across a broader geographical base. We, therefore, look forward with confidence to the current year and beyond.”
Knights became the fifth listed firm in the UK after it floated on the AIM submarket last June. At the time, it was the largest valuation of a UK law firm in an IPO.