11th Jan 2022 11:00
(Alliance News) - Knights Group Holdings PLC on Tuesday resumed its interim dividend as a strong performance for the period allowed the company to return to profitability.
For the six months ended October 31, the Newcastle-under-Lyme-based legal and professional services firm posted a pretax profit of GBP848,000, compared to a loss of GBP1.1 million the same period a year prior.
This was on revenue which grew 29% year-on-year to GBP59.7 million from GBP46.2 million. Revenue growth was fostered by contributions from acquisitions in Exeter, Weybridge and Battle in the second half of the prior year, which have performed ahead of expectations.
On an organic basis, revenue rose on new client wins and the sale of further services to existing clients, but organic growth was held back by the restructuring of some teams considered to be less profitable.
Knights has reinstated its interim dividend payout at 1.46 pence per share.
Looking ahead, the company said it expects good trading in the second half, with a pipeline of acquisition opportunities remaining healthy. As a result, Knights is on-track to deliver a full year performance in line with market expectations.
"We have delivered another strong period of profitable, cash generative growth, with our increased scale and national reputation as a premium provider attracting high calibre talent, quality work and acquisition targets across the regions," said Chief Executive Officer David Beech.
"Our outlook for the medium term is positive with recruitment supporting good levels of organic growth, and with further acquisition opportunities. We continue to build on the critical mass we achieved last year, further cementing the strong position we have built in key markets for legal services outside London," Beech added.
Shares in Knights Group were up 1.2% at 415.00 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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