Acquisition of Moore Barlow drives c.11% PBT uplift

Knights has announced the complementary acquisition of the commercial and private wealth service lines of Moore Barlow LLP.

Operating in the affluent South-East market, this is another significant, compelling acquisition for Knights that will add around 160 fee-earners. Generating c.£30m of revenues, Knights is paying only 0.9x EV/Revenues, structured as £18m initial cash consideration and a further £9m over three years, subject to conditions.

We raise our FY29E group revenue and Adj. PBT by c.11% and increase our Fair Value per share by 5% to 330p, equivalent to 10x cal 2027 PER.

Hence, trading on under 5.5x cal 2027 PER we believe Knights’ rating materially undervalues its quality growth prospects.