**Summary of Knights Group Holdings PLC Full Year Results for FY25**
**Financial Highlights**
**Revenue Growth** Revenue increased by 8% to £162.0 million (FY24: £150.0 million).
**Gross Margin Improvement** Gross margin rose by 170 basis points to 50.5% (FY24: 48.8%).
**Underlying EBITDA Growth** Underlying EBITDA increased by 11% to £42.9 million (FY24: £38.7 million), with a margin improvement to 26.5% (FY24: 25.8%).
**Underlying PBT Growth** Underlying profit before tax (PBT) rose by 11% to £28.0 million (FY24: £25.3 million), with a margin of 17.3% (FY24: 16.9%).
**Underlying EPS Growth** Underlying basic earnings per share (EPS) increased by 10% to 23.95p (FY24: 21.81p).
**Reported PBT and EPS** Reported PBT was £12.3 million (FY24: £14.8 million), and basic EPS was 8.83p (FY24: 11.47p), primarily impacted by increased non-underlying acquisition-related costs.
**Lock-Up Days** Normalized lock-up days to 86 (FY24: 78 days), with debtor days remaining industry-leading at 31 (FY24: 28 days).
**Strong Cash Conversion** Cash conversion remained strong at 130% (FY24: 131%).
**Net Debt** Net debt increased to £64.8 million (30 April 2024: £35.2 million), after £25.1 million of acquisition consideration.
**Dividend Increase** Final dividend increased by 9.3% to 3.05p (FY24: 2.79p), giving a total dividend of 4.81p (FY24: 4.40p).
**Strategic and Operational Highlights**
**Recruitment Momentum** Recruited 51 senior fee earners, 28% more than in FY24, reflecting the appeal of the corporatized model and strong reputation.
**Churn Reduction** Churn reduced to 10% in H2, significantly lower than the industry average, driven by engagement initiatives.
**Strong Client Wins** Attracted clients with a diverse service offering, benefiting from strong pricing discipline and cost optimization.
**Acquisition Strategy** Executed two significant acquisitions, Thursfields Legal Limited and IBB Law LLP, adding 247 fee earners and broadening the service offering. Both acquisitions are integrating well and trading in line with expectations.
**Post-Period Acquisitions** Acquired Birkett Long LLP and Rix & Kay LLP post-period end, further extending the legal and wealth advisory services and regional footprint.
**Current Trading and Outlook**
**Encouraging Start to FY26** Trading at the start of the current year is in line with expectations.
**Continued Growth** Increasing numbers of high-quality professionals and firms are joining Knights, with financial headroom to support further acquisitions.
**Confident Outlook** Confident in further profitable growth in FY26 and the medium-term, supported by recruitment momentum, acquisition opportunities, and client wins.
**CEO Commentary (David Beech)**
Highlighted the proven strategy delivering double-digit profit growth and enhanced margins despite macroeconomic challenges.
Emphasized step changes in the business, including strengthened leadership, operational discipline, and a focus on organic growth and acquisitions.
Noted the increasing recognition of Knights differentiated proposition, combining national scale with local presence and relationships.
Expressed confidence in further growth supported by recruitment, acquisitions, and operational excellence.
**Chairmans Statement**
Praised the collaborative culture and corporate model, which have attracted high-quality talent and driven strong performance.
Highlighted the successful execution of the growth strategy, including acquisitions and operational efficiency.
Committed to a progressive dividend policy, balancing growth with shareholder returns.
**Chief Executives Review**
Stressed the resilience of the business model, delivering strong profit growth despite macroeconomic uncertainty.
Highlighted the success of the acquisition strategy, including the largest acquisition to date, and the seamless integration of acquired firms.
Noted the increasing scale and recognition of the Knights brand, attracting talent and clients.
Emphasized the focus on technology, including AI, to remain at the forefront of industry developments.
**Financial Review (CFO)**
Detailed the financial performanceincluding revenue growthmargin improvementsand strong cash generation.
Explained the impact of non-underlying costs on reported PBT and EPS.
Highlighted the strong balance sheet and financial flexibility to support future growth.
**Conclusion**
Knights Group Holdings PLC has delivered a strong financial performance in FY25, driven by strategic acquisitions, operational excellence, and recruitment momentum. The Group is well-positioned for further growth, supported by a robust financial position, a differentiated market proposition, and a clear strategic focus.