Knights Group Holdings Plc · LSE:KGH
Knights — FY2025 Earnings Presentation
38 slides from Knights's earnings presentation, September 2025
Slide 1: Full Year Results
Full Year Results For the year ended 30 April 2025 Strategic progress driving double digit profit growth September 2025
Slide 2: Company disclaimer
Company disclaimer These presentation slides (the “Slides” have been issued by Knights Group Holdings plc (the “company”). The Slides have been prepared by and are the sole responsibility of the Company. Although all reasonable care has been taken to ensure that the facts stated in the Slides and ac
Slide 3: Full year overview
Full year overview Double digit profit growth Significant increase in Ongoing operational underlying PBT and Revenue growth from a excellence and continued margin strengthened team cost discipline expansion Positive recruitment Operational momentum and Proven leadership, and Strong performance excel
Slide 4: Track record of profitable, cash generative growth
Track record of profitable, cash generative growth Revenue £’m Underlying PBT5 £’m 35 250 33.0 c.5.7 x 30 c.6.9 x IPO 199.3 IPO 28.0 200 25.3 25 162.0 21.6 150.0 150 142.1 20 18.4 18.1 125.6 103.2 15 13.6 100 74.3 10 9.4 52.7 50 34.9 4.8 5 0 0 2018 2019 2020 2021 2022 2023 2024 2025 2026* 2018 2019
Slide 5: Financial Review
Financial Review
Slide 6: Full year overview – key financials
Full year overview – key financials Profitable growth and margin accretion after c.£30.3m of acquisition consideration Debtor days WIP days FY Revenue Underlying EBITDA and margin Underlying PBT5 and margin +8.0% +10.9% to £42.9m +10.6% to £28.0m (FY 2024: £38.7m) (FY 2024: £25.3m) To £162.0m +70bps
Slide 7: Robust financial performance
Robust financial performance Summary income statement (£’000) 30 April 2025 30 April 2024 Revenue 161,966 149,957 Revenue Growth % 8.0% 6.0% • Revenue growth of 8% driven Other operating income 9,649 10,439 by acquisitions in the year Staff costs (97,607) (93,007) • Other operating charges down Othe
Slide 8: Significant increase in underlying PBT
Significant increase in underlying PBT 5 Underlying PBT Bridge (£’m) 2% pts lower as % of revenue Strong Gross margin platform up by 170 for 35 7.5 futurebps, reflecting pricing and profitable recovery improvement, growthwith driven by focus on continued (0.8) 17.3%experienced 30 (1.3) Client profit
Slide 9: Key Performance Indicators
Key Performance Indicators Improved gross profit margin14 (%) Strong cash generation - Underlying FCF4 (£m) 55 30 50.5 26.7 50 48.5 48.8 24.6 25 20.3 45 20 40 15 FY23 FY24 FY25 FY23 FY24 FY25 Increased fees per FTE fee earner 1 (£k) Increased gross profit per fee earner (£k) 200 85 80.1 161.6 144.6
Slide 10: Summary cash flows
Summary cash flows £'000 30 April 2025 30 April 2024 Underlying EBITDA 10 42,928 38,682 130% Change in working capital (5,121) (3,549) Underlying Cash Conversion 4 Cash outflow for IFRS 16 leases (6,515) (6,245) Movement in underlying share based payment charge 1,195 1,121 Cash generated from underl
Slide 11: Industry leading debtor days
Industry leading debtor days Our unique culture drives cash generation Progress reducing Lockup8 days acquisition lock up days 140 At At 116 113 113 acquisition 30 April 25 120 105 103 100 215 days 79 days FY23 Lockup days 80 36 31 30 31 60 28 213 days 80 days 40 53 55 57 50 55 129 days 56 days 20 F
Slide 12: Net debt bridge (£'m)
Net debt7 bridge (£’m) 70.0 Net debt at 11.8 64.8 £64.8m 60.0 c.£35.2m 3.9 0.6 at 30 April 24 50.0 3.9 5.4 RCF available 40.0 31.4 £100m 35.2 c.£30m headroom in current facilities as 30.0 at 30 April 2025 20.0 Covenant leverage 1.57x at 30 April 2025 10.0 (27.4) (1.14x at 30 April 24) 0.0 Final divi
Slide 13: Operational Review
Operational Review
Slide 14: Knights today: unmatched national scale with unique local reach
Knights today: unmatched national scale with unique local reach Business never stronger in terms of scale, recognition, services and talent Our USP An industry leader 1 Unrivalled breadth of locally accessible • Underserved locations with strong underlying demand for a 32* 1,002 specialisms broad su
Slide 15: Large and fragmented addressable market
Large and fragmented addressable market Well-placed to capitalise on increasing consolidation in the sector Significant opportunity to further consolidate and professionalise c.£3.8bn c. 200 Addressable Firms operating Traditional partnership or quasi-partnership models are limiting the agility mark
Slide 16: A compelling platform for legal professionals and vendors
A compelling platform for legal professionals and vendors Compelling platform for recruitment and acquisitions Strong proposition for Unlocking value from Most compelling and active high performing talent acquisitions acquirer of scale Exit outdated partnership model; no Immediate synergies financia
Slide 17: Executing our value-accretive acquisition strategy
Executing our value-accretive acquisition strategy Largest acquisition to date completed in the period Scaling through high quality Case study: acquisitions Building scale in the attractive South East market with three acquisitions • Acquisitions accelerate growth in key region, complementing existi
Slide 18: Future organic growth underpinned by talent
Future organic growth underpinned by talent Retaining and recruiting more effectively than ever Strong recruitment and retention, with churn significantly reduced 51 senior fee earners joined in FY25, up 28% versus FY24 (40)3 FY26 recruitment expected to increase Zuher Makri, Senior Associate Churn
Slide 19: Driving operational excellence and cost discipline
Driving operational excellence and cost discipline Sharpened focus across the Group Experienced management team of 25 directors - average tenure of 6 years Maximising Focused on acquisition Strong pricing organic growth integration discipline synergies Regional Market leading footprint Centralised P
Slide 20: Driving operational excellence: spotlight on tech
Driving operational excellence: spotlight on tech Supporting growth and margins through enhanced productivity and client experience Hired Chief Information and Single core platform and one Further technology planned Technology Officer in June team culture enables rapid and in 2026 to improve documen
Slide 21: Compounding profit growth model
Compounding profit growth model Supporting medium term growth Recruitment Organic growth Leveraging our brand and scale Strong Acquisitions profitability Cash generation Knights │ Full year results 21
Slide 22: Summary & current trading
Summary & current trading 1 2 3 Well embedded management Increase in high quality people team driving operational Trading at the start of the current and firms joining Knights excellence and providing year in line with expectations expands our opportunities for strong platform for growth further gro
Slide 23: Appendices
Appendices
Slide 24: Appendix I: Additional Financial Information
Appendix I: Additional Financial Information
Slide 25: Revenue bridge (£'m)
Revenue bridge (£’m) 200 Organic income 180 12.5 0.3 160 (0.8) 17.6 5.1 140 120 144.9 144.4 100 80 60 Revenue FY24 FY24 & FY25 acquisitions Strategic reductions All other sectors Revenue FY25 Organic income Acquisition income Knights │ Full year results 25
Slide 26: Organic growth calculation
Organic growth calculation £'000 30 April 2025 30 April 2024 Organic growth excludes income growth from acquisitions in the year of Income pre FY24 / FY25 acquisitions 144,425 144,905 their acquisition, and for the first full financial year following acquisition, FY24 acquisition income 5,042 5,052
Slide 27: Reconciliation of underlying to statutory measures – PBT
Reconciliation of underlying to statutory measures – PBT Underlying profit before tax 5 (£'000) 30 April 2025 30 April 2024 Profit before tax 12,269 14,831 Amortisation on acquired intangibles 4,033 3,580 Contingent acquisition payments 3,752 2,824 Non-underlying costs 7,949 4,087 Underlying profit
Slide 28: Reconciliation of underlying to statutory measures – PAT and EPS
Reconciliation of underlying to statutory measures – PAT and EPS Underlying profit after tax12 (£'000) / Underlying earnings per share 6 (pence) 30 April 2025 30 April 2024 Profit after tax 7,576 9,847 Amortisation on acquired intangibles 4,033 3,580 Non-underlying operating costs 11,701 6,911 Tax i
Slide 29: Balance sheet and liquidity
Balance sheet and liquidity Summary balance sheet Summary balance sheet £'000 30 April 2025 30 April 2024 • Increase in goodwill and other intangibles Goodwill and other intangibles 105,873 86,900 following acquistions during the year of Thursfields and IBB Right of use asset 46,635 34,034 • Assets
Slide 30: Deferred and Contingent consideration
Deferred and Contingent consideration Expected Consideration payments due on Deferred Contingent acquisitions post consideration consideration Total year end Total (£'000) (£'000) (£'000) (£'000) (£'000) Accrued at 30 April 2025 1,175 2,458 3,633 - 3,633 Payable at 30 April 2025 FY26 648 5,648 6,296
Slide 31: Reconciliation of fee earner numbers
Reconciliation of fee earner numbers Partner & Senior Other-qualified Non-qualified Total Associates professionals professionals Integrar professionals Opening FTE at 1 May 2024 400 247 231 86 964 Acquisition starters (net of any FY24 and FY25 acquisition leavers) 73 67 71 - 211 Re-classification /
Slide 32: Glossary
Glossary 1. Fee earners are individuals working on a fee earning basis, which includes professionals (legal and non-legal) of all levels. This metric is calculated by averaging month-end FTE’s over the reporting period, including all organic, acquisition and Integrar fee earners. 2. Clients refers t
Slide 33: Appendix II: Additional Operational Information
Appendix II: Additional Operational Information
Slide 34: Capital allocation framework
Capital allocation framework Cash flow Approach Maintaining industry leading lockup, Highly cash Strong cash generation 1 Existing business leveraging scale and enhancing acquisition cashflows generative with limited capex requirements Investment in quality people, 2 Organic growth collaborative wor
Slide 35: Broad and deep specialisms serving both corporate and individual clients
Broad and deep specialisms serving both corporate and individual clients Core legal services offering 29% Real Estate 16% Private Wealth Expert, multi-sector advice in a broad range of commercial matters 13% including asset management, plot sales, property litigation, construction, development, and
Slide 36: Leadership team
Leadership team Knights │ Full year results 36
Slide 37: A unique collaborative culture to drive future growth
A unique collaborative culture to drive future growth National scale and premium brand reinforces an attractive proposition for fee earners, clients and targets (1) to (4), (10) See Glossary (* as at 15 September; 30 locations at 30 April 2025 Knights │ Full year results 37
Slide 38: Thank you
Thank you Knights Registered Office The Brampton Newcastle-Under-Lyme Staffordshire ST5 0QW Tel: 0344 371 2562
Knights Group Holdings — FY2025 Earnings Presentation on 6ix