UK's Knights Group FY26 revenue rises on organic and acquisition growth
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: ID:nRSF0582La
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Adjusted Net Income |
| GBP 24.67 mln |
|
FY Adjusted Diluted EPS |
| GBP 0.27 |
|
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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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)