15th Jan 2019 11:45
LONDON (Alliance News) - Knights Group Holdings PLC on Tuesday said it has acquired Cummins Solicitors Ltd, while it also announced double-digit growth in revenue in the first half of its current financial year.
In addition, the professional services firm has promoted Richard King to the position of chief operating officer, and appointed Jane Pateman as a non-executive director, both with immediate effect.
Knights said Pateman brings 17 years' experience in senior human resources roles at listed businesses including British Gas owner Centrica PLC and waste management firm Biffa PLC.
For the six months to the end of October, Knights reported 37% increase in revenue to GBP23.9 million from GBP17.5 million posted the year prior.
This growth reflected organic growth of GBP1.8 million, or 10%, in addition to a GBP4.6 million contribution from acquisitions in the period.
Pretax profit declined, however, to GBP1.5 million from GBP2.1 million year-on-year, hurt by non-underlying finance costs of GBP1.9 million. Adjusted pretax profit has has more than doubled to GBP4.4 million from GBP2.1 million a year earlier.
Knights declared a maiden interim dividend of 0.6 pence a share.
"The strong trading performance of the first half year has continued into the start of the second half year and this supports the board's confidence that the group will meet expectations for the full year," said Chief Executive David Beech.
In a separate statement, Knights said it has bought law firm Cummins Solicitors for GBP1.6 million, in both cash and shares.
The cash consideration will be satisfied from Knights' existing facilities. The company will issue 125,318 new shares to the sellers of Cummins Solicitors.
Knights shares were trading 1.5% higher on Tuesday midday at 208.00 pence each.
In 2018, Cummins delivered revenue of GBP784,000 and adjusted earnings before interest, taxes, depreciation, and amortization of GBP175,000.
Knights expects the acquisition to bolster the strength of its employment offering.
"We are delighted to welcome Cummins to the group today. The firm has a strong reputation which supports our growth strategy and demonstrates the momentum we are now achieving," said Beech.
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