19th Jan 2021 11:52
(Alliance News) - Knights Group Holdings PLC on Tuesday reported "robust" interim results, but slipped to a loss so has decided against any shareholder distributions.
Shares in the legal and professional services firm were 3.0% higher in London on Tuesday at 368.62 pence each.
In the six months to October 31, Knights slipped to a pretax loss of GBP1.1 million compared to a GBP2.8 million profit the year before.
Revenue improved 44% to GBP46.2 million from GBP32.0 million. Knights noted it saw a GBP19 million boost in revenue from acquisitions.
Staff costs, however, rose to GBP29.6 million from GBP19.9 million and the firm recorded GBP7.9 million in other operating charges, up from GBP4.9 million, and also booked GBP6.0 million in non-underlying operating costs, up from GBP1.8 million.
Chief Executive David Beech said: "We have delivered a robust first half performance of profitable, cash generative growth across an enlarged group, despite the macro economic environment. The health and wellbeing of our people continues to be the group's priority and this performance is credit to our teams' continued provision of excellent service to our clients, remotely."
Knights said its trading recovered through the first half, reaching near pre-Covid levels in October, giving the firm sufficient confidence to resume full salaries for staff from November 1.
"Activity levels have improved further since period end, providing confidence that we will return to double-digit organic growth for the second half," Beech said.
Despite this, Knights decided it was not appropriate to pay an interim dividend but will review its shareholder payout policy at the end of its financial year.
He added: "We continue to execute on our strategy of driving organic growth, supplemented by targeted acquisitions that build scale and provide entry into attractive regional markets.
"Our well invested business and strong culture is attracting senior fee earners, many of whom are joining from Top 50 law firms. Our prior investments have enabled us to successfully onboard new colleagues, win exciting new clients and rapidly integrate four acquisitions during a period of working remotely."
Beech said he remains confident in Knights' strategy and prospects for the future.
By Paul McGowan; [email protected]
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