Knights Group Holdings Plc (KGH) AI Stock Analysis

• Market Cap: £150.17M
• Dividend Yield: 2.75%
• Average Volume (3M): 217.28K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.15
• Revenue Growth: 8.01%
• EPS Growth: -23.02%
• Country: UK
• Employees: 1,335
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.02
• Shares Outstanding: 85,813,470
• 10 Day Avg. Volume: 115,996
• 30 Day Avg. Volume: 217,285
• PEG Ratio: -0.80
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 8.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: 186.00p ▲(6.29% Upside)

Knights Group Holdings Plc's overall stock score is driven by strong corporate events and financial performance, despite technical analysis indicating bearish momentum. The company's strategic initiatives and robust cash flow generation support its growth trajectory, but high leverage and current market momentum pose risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective client acquisition strategies, supporting long-term business expansion.

Operational Efficiency

Stable gross margins suggest effective cost control, which is crucial for maintaining profitability and competitive pricing over time.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Negative Factors

High Leverage

High leverage can strain financial resources, increasing risk and limiting the company's ability to invest in growth or weather downturns.

Profitability Challenges

Declining net profit margins suggest difficulties in converting revenue into profit, potentially impacting future earnings and shareholder returns.

Free Cash Flow Conversion

Decreased free cash flow conversion limits the company's ability to fund new projects, pay dividends, or reduce debt, affecting long-term growth.

Knights Group Holdings Plc Business Overview & Revenue Model

Company Description

Knights Group Holdings plc provides legal and professional services in the United Kingdom. The company offers business services, in the areas of banking, commercial, corporate, data protection, debt recovery, dispute resolution, and housing and regeneration. It also offers services in the areas of immigration, licensing and gambling, and employment. In addition, the company provides personal services, including agriculture, charities, conveyancing, family, landed estates, planning, professional discipline, tax and trusts, and wills and estates. Further, it offers real estate; restructuring and insolvency; regulatory; and tax services. The company serves aviation, consumer and retail, energy, waste and natural resources, financial and professional services, healthcare, industrials, transport and support services, property management and development, agricultural and the food supply chain, technology, and media and telecommunications sectors. Knights Group Holdings plc was founded in 1759 and is based in Newcastle-under-Lyme, the United Kingdom.

How the Company Makes Money

Knights Group Holdings Plc generates revenue primarily through the provision of legal services to its clients. The company operates on a fee-for-service model, billing clients for the hours worked by its solicitors and other professionals. Key revenue streams include transactional work, litigation services, and advisory roles in corporate governance and compliance. Additionally, the firm may earn income through retainer agreements with corporate clients who require ongoing legal support. Significant partnerships with corporate clients and strategic alliances with other service providers enhance KGH's market presence, contributing to its earnings by enabling cross-selling opportunities and expanding its client base.

Knights Group Holdings Plc Financial Statement Overview

Summary

Knights Group Holdings Plc demonstrates strong revenue growth and operational efficiency, but faces challenges in profitability and leverage. The balance sheet shows high debt levels, which could impact financial stability. Cash flow generation is robust, yet there is potential to enhance free cash flow conversion.

Income Statement

Knights Group Holdings Plc has shown consistent revenue growth over the years, with a 5.54% increase in the latest period. The gross profit margin has remained stable, indicating efficient cost management. However, the net profit margin has decreased compared to the previous year, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins are healthy, suggesting operational efficiency, but the decline in EBIT margin from the previous year indicates potential cost pressures.

Balance Sheet

The company has a relatively high debt-to-equity ratio of 1.20, indicating significant leverage, which could pose financial risks. Return on equity is moderate at 7.25%, showing decent profitability for shareholders. The equity ratio of 37.52% suggests a balanced capital structure, but the increasing debt levels warrant caution.

Cash Flow

Operating cash flow has improved, with a strong operating cash flow to net income ratio of 0.66, indicating good cash generation from operations. Free cash flow growth is positive at 6.17%, but the free cash flow to net income ratio has decreased, suggesting less cash available after capital expenditures. Overall, cash flow management appears solid, but there is room for improvement in free cash flow conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	161.97M	161.97M	149.96M	142.08M	125.60M	103.20M
Gross Profit	64.36M	64.36M	56.95M	130.47M	48.74M	40.49M
EBITDA	28.58M	28.58M	31.72M	26.80M	14.18M	15.09M
Net Income	7.58M	7.58M	9.85M	7.94M	-2.53M	3.40M
Balance Sheet
Total Assets	278.61M	278.61M	219.10M	212.17M	206.28M	194.30M
Cash, Cash Equivalents and Short-Term Investments	5.85M	5.85M	5.45M	4.04M	4.10M	4.78M
Total Debt	124.95M	124.95M	81.19M	78.18M	79.68M	68.56M
Total Liabilities	174.08M	174.08M	118.84M	119.36M	120.62M	111.61M
Stockholders Equity	104.53M	104.53M	100.26M	92.81M	85.66M	82.69M
Cash Flow
Free Cash Flow	13.50M	13.50M	14.63M	14.41M	7.52M	2.52M
Operating Cash Flow	25.25M	25.25M	22.83M	16.33M	10.11M	7.08M
Investing Cash Flow	-38.33M	-38.09M	-14.33M	-7.85M	-10.33M	-6.65M
Financing Cash Flow	19.53M	13.32M	-7.09M	-8.67M	1.52M	-10.24M

Knights Group Holdings Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 175.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KGH, the sentiment is Positive. The current price of 175 is above the 20-day moving average (MA) of 161.32, above the 50-day MA of 170.16, and above the 200-day MA of 164.63, indicating a bullish trend. The MACD of 1.51 indicates Negative momentum. The RSI at 65.51 is Neutral, neither overbought nor oversold. The STOCH value of 87.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:KGH.

Knights Group Holdings Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEYS	76 Outperform	£193.48M	19.87	56.75%	5.98%	16.29%	22.80%
BEG	69 Neutral	£184.26M	18.44	12.60%	3.91%	8.31%	305.88%
RST	66 Neutral	£356.00M	37.90	4.01%	2.31%	6.90%	145.00%
CPI	64 Neutral	£469.92M	27.56	9.00%	―	-4.87%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KGH	61 Neutral	£150.17M	19.82	7.40%	2.75%	8.01%	-23.02%
PPHC	61 Neutral	£270.66M	-42.24	-40.39%	1.11%	15.27%	-73.02%

Knights Group Holdings Plc Corporate Events

Knights Group Holdings Reports Strong First Half with 30% Revenue Growth

Knights Group Holdings Plc reported a robust performance for the six months ending October 2025, with a 30% revenue increase to £103.2 million and a return to organic growth. The company achieved a 12% rise in underlying profit before tax, despite a slight decrease in profit margins due to higher payroll taxes and investments in AI and technology. Knights has successfully integrated recent acquisitions, expanded its team, and extended its credit facility, positioning itself for continued growth. The firm’s strategic initiatives and operational management enhancements are expected to support future performance in line with market expectations.

Knights Group Holdings Enhances Employee Investment with SIP Share Purchase

Knights Group Holdings Plc, a legal and professional services company, announced that its SIP trustee has re-invested dividends by purchasing 10,969 ordinary shares on behalf of participating employees. This transaction, following an interim dividend payment, reflects the company’s ongoing commitment to employee investment and engagement, potentially enhancing stakeholder confidence and aligning managerial interests with shareholder value.

Knights Group Holdings Plc Successfully Passes All AGM Resolutions

Knights Group Holdings Plc announced that all resolutions proposed at its Annual General Meeting were successfully passed, reflecting strong shareholder support. This outcome underscores the company’s robust governance and strategic direction, potentially reinforcing its market position and stakeholder confidence. A trading update for the half-year results is anticipated on 21 November 2025, which may provide further insights into the company’s performance and future prospects.

Knights Group Holdings Releases 2025 Annual Report and Announces AGM

Knights Group Holdings Plc has released its Annual Report for the year ending 30 April 2025, with the Annual General Meeting scheduled for 24 October 2025. The report and AGM notice are accessible on the company’s website, and shareholders are encouraged to submit questions in advance. This announcement highlights Knights’ continued commitment to transparency and stakeholder engagement, reinforcing its position as a leading law firm in the UK.

Knights Group Holdings Reports Robust Financial Growth and Strategic Expansion

Knights Group Holdings Plc reported strong financial performance for the year ending April 2025, with an 8% increase in revenue and an 11% rise in underlying EBITDA. The company has made strategic progress, reducing churn and enhancing recruitment momentum, while executing significant acquisitions to expand its service offerings and market presence. Knights’ largest acquisition to date, IBB Law LLP, has bolstered its position in the South East, and the company remains confident in achieving further profitable growth in FY26, supported by a robust acquisition pipeline and operational excellence.