UK's Knights Group FY26 revenue rises on organic and acquisition growth

Overview

• UK legal services firm's FY26 underlying revenue rose 28%, driven by organic and acquisition growth

• Underlying diluted EPS increased by 19% to 0.27GBP year on year

• Company raised total dividend for the year by 17%

Outlook

• Company says it expects continued organic growth, complemented by value-enhancing acquisitions in the current year

• Knights says continued investment has strengthened its ability to capitalise on opportunities in the UK legal sector

• Company says renewed and extended revolving credit facility provides flexibility to pursue growth strategy

Result Drivers

• ORGANIC GROWTH - Co said return to organic growth was driven by selective hiring of experienced professionals, expansion into new specialisms and geographies, and focus on pricing and productivity

• ACQUISITIONS - Recent acquisitions in the South East and Cardiff contributed to revenue growth and expanded the firm's network and talent pool

• TECHNOLOGY INVESTMENT - Continued investment in technology and AI increased costs but aimed to improve efficiency and support future growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Knights Group Holdings PLC is GBp220.00, about 17% above its July 3 closing price of GBp188.00

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

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