Knights Group Holdings Plc: Strong Financial Performance and Strategic Growth Drive Buy Rating

Analyst Sam Dindol from Stifel Nicolaus maintained a Buy rating on Knights Group Holdings Plc (KGH – Research Report) and keeping the price target at p170.00.

Sam Dindol has given his Buy rating due to a combination of factors that highlight Knights Group Holdings Plc’s strong financial and operational performance. The company has reported an anticipated revenue growth of 8% for FY25, reaching approximately £162 million, with an underlying profit before tax (PBT) increase of 11% to £28 million. Despite the PBT being slightly below expectations, it includes costs related to a new executive share incentive scheme, which demonstrates the company’s commitment to long-term growth.
Additionally, Knights Group Holdings has shown significant operational progress by hiring 52 senior fee earners, indicating strong recruitment momentum. The successful integration of recent acquisitions like Thursfields and IBB Law, along with the acquisition of Birkett Long, has bolstered the company’s regional presence and expanded its service offerings. The group’s balance sheet remains robust with net debt in line with expectations and substantial headroom in its revolving credit facility, supporting further growth opportunities. These factors, combined with a favorable valuation, underpin Dindol’s Buy rating.