London-listed law firm Knights returns to organic growth as buying spree continues
London-listed law firm Knights posted a return to organic growth today following a flurry of acquisitions over the last year.
Revenue at the company increased six per cent to £75.3m for the six months ending 31 October, with the business posting organic growth of 3.3 per cent.
Speaking to City A.M., CEO David Beech said he was pleased with the return to organic growth, adding that the firm has proved to be “very resilient” in the current economic climate.
Beech said the firm’s “diverse business model” gives a “safe haven to partners to earn the same or more in income” even amid an economic downturn.
This, he said, has led the business to see an uptick in its recruitment, taking on “double the amount of senior hires in this half year”.
Knights presence throughout England has grown rapidly in recent years after completing around 21 acquisitions since 2018.
“The acquisitions which we’ve done over the last couple of years and more recently, in the last sort of 12 months, have really integrated well,” Beech said. “We have done quite a bit in north Teesside, Newcastle Carlisle, who have all integrated really well, alongside acquisitions in Portsmouth and Bristol.”
Beech said the company will carry on with its acquisitions strategy and “continue to grow its footprint” going into the new year.
“The real growth for for us is going to be all of the other locations outside London, Birmingham, Manchester, Leeds, where we can be a dominant force in legal and professional services to the business communities,” he added.
Knights half-year results also showed that it is pushing on cash collection, taking an average of 31 days to collect invoices. Its total lock-up improved to 93 days compared to 103 days in October 2022.
“The average of the top 100 law firms from a PwC survey is 73 days, so we are 42 days faster than the average to top 100,” Beech noted.
He explained that the firm insists that its clients pay within 30 days. This has lead it to be a “market leader in cash generation”, allowing the firm to “keep investing in people, technology, premises and acquisitions, when we choose to”.