Knights’ H126 trading update illustrates the power of its position as the leading consolidator in the premium, regional legal market.
Knights’ H126 revenues rose an impressive 30% to £103.2m as a return to organic growth of 3% was complemented by the recent strategic acquisitions of IBB Law, Birkett Long, Rix & Kay and Le Gros Solicitors. These acquisitions are all integrating well, with working capital benefits coming through under Knights’ ownership. From this strong performance, management is confident in achieving FY26E expectations.
Whilst Knights’ share price has risen 16% in the past two months, it still only trades on 6x cal 2026 PER, a significant discount to peers and its historic trading range.
In our view, Knights offers a compelling mix of organic and acquisitive growth, with net financial debt / EBITDA only 1.4x (FY26E). We see scope for a significant rerating and reiterate our 230p/ share fair value estimate.
