Strong FY26 delivery, revenue rose 28% to £207.7m and Adj. PBT increased 19% to £33.2m, maintaining a 16% margin despite cost headwinds, with a positive start to FY27E.
Organic growth gaining momentum, H226 organic growth reached 12%, reflecting the benefits of investment in people, premium offices and technology, with staff churn remaining low at 10%.
Balance sheet supports opportunity, lock-up improved to 84 days, leverage reduced and the total dividend increased 17% to 5.63p, while management describes the acquisition pipeline as the healthiest seen for some time.
Valuation remains undemanding, despite a 27% recovery in the share price since April, Knights trades on only 6x cal 2027 PER, which we believe undervalues its organic growth momentum and acquisition track record. We raise our Fair Value/ share from 255p to 315p, equivalent to 7x cal 2027 EV/EBITDA and 10x cal 2027 PER.
