Knights moves into Bristol with acquisition number 19
Summary
Listed law firm Knights – which describes itself as now the UK’s largest commercial practice without an office in London – has moved into Bristol with its latest acquisition. Meade King reported turnover of £2.7m for its last financial year and a corporatised profit before tax margin of 5%, which Knights told investors it expected to increase to 17%. Fee-earner numbers hit 1,075, an increase of 144 on a year earlier, while net debt has risen to £35.6m – after paying around £8m of acquisition consideration and related costs – but Knights retains significant headroom against its £60m revolving credit facility. “With our focus on improving productivity along with improved gross margins, underpinned by increased interest income, we are confident of delivering full-year results in line with market expectations, and continuing to cement our position as the leading legal and professional services business outside London.” The results said the firm’s longstanding regional presence “means that we have significant experience of working in regions that have not experienced economic prosperity for some time, so we are well positioned to support our clients in times of economic uncertainty”. Our analysis last week of the performance of listed law firms in 2022 – which was reported today by The Times – showed how, after years of strong growth, Knights’ share price saw a spectacular decline.