21st May 2019 11:04
LONDON (Alliance News) - Legal and professional services firm Knights Group Holdings PLC said Tuesday it performed "well" in the second half of the year, which is expected to result in a 50% jump in revenue.
Knights Group expects revenue for 12 months ended April to be "not less than" GBP52.4 million, which represents a 51% increase on the year before, with 15% organic revenue growth.
The company attributed the "strong" organic growth on a "successful" recruitment drive in the second half, resulting in a higher number of "fee earners".
The company's adjusted pretax profit is expected to be "slightly ahead" of market expectations at GBP9.7 million, more than double the amount reported in the prior year.
Knights Group said its cash conversion was "higher than normal" in the period, which has resulted in "excellent" cash generation and a year end net debt position of GBP14.1 million - "significantly" better than market expectations of GBP17.8 million.
During the period, the company made four acquisitions. Knights Group said all four have now been fully integrated and are "performing well", in line with our expectations, and provide "strong platforms from which to grow in their respective regions".
"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 Chief Executive David Beech.
Beech added: "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 Group is expected to report its full year results on July 9.
Shares in Knights Group were up 5.7% Tuesday at 299.00 pence each.
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