Knights Returns to Organic Growth as Revenue Rises 30% and Regional Expansion Continues

Knights (LSE:KGH) has reported a strong first-half performance for the six months ended 31 October 2025, with underlying revenue increasing 30% to £103.2m and a return to organic growth of around 3%. Underlying profit before tax rose 12.5% to £16.4m, while cash conversion reached a robust 122%, despite margin pressure from higher payroll taxes, increased interest costs and continued investment in technology and artificial intelligence.

The group continued to execute its scale-up strategy through targeted acquisitions and office upgrades, further expanding its presence across the Midlands, South East and Cardiff. Client and staff retention improved, with annualised churn reduced to 9%, alongside ongoing enhancements to operational management and technology infrastructure. These initiatives have left Knights well positioned to deliver further organic growth in the second half of the financial year, with management reiterating confidence in achieving full-year results in line with market expectations.

On a reported basis, profit before tax declined due to higher non-underlying costs linked to acquisitions, while net debt increased to £75.2m, reflecting investment activity and deal-related cash outflows.

Overall, Knights Group Holdings Plc’s outlook is supported by strong corporate execution and solid underlying financial performance. Robust cash generation and strategic progress underpin the growth story, although elevated leverage and bearish market momentum highlighted by technical indicators introduce elements of risk.

More about Knights Group Holdings Plc

Knights Group Holdings Plc is a fast-growing national legal and professional services business and ranks among the UK’s top 50 law firms by revenue. Operating under a corporate structure rather than a traditional partnership since 2012, the firm provides specialist legal and professional services across corporate and commercial law and private wealth. Knights focuses on key regional markets outside London, operating through a network of 32 offices across the Midlands, North of England, South East, South West and Wales.