Knights increased revenue 28% to £207.7 million after completing three acquisitions, while organic growth accelerated to 12% in the second half of the year.
The listed consolidator said it remains focused on acquisitions and continues discussions over a potential deal for Moore Barlow, which would be the firm's largest takeover to date.
Knights has reported a 28% jump in annual revenue to more than £207 million, as the listed law firm continues its acquisition spree and signalled further expansion ahead.
The AIM-listed consolidator generated underlying revenue of £207.7 million in the year to 30 April, up from £162 million a year earlier, while underlying profit before tax rose 19% to £33.2 million.
The results come after Knights completed three acquisitions during the year - Birkett Long, Rix & Kay and Le Gros Solicitors - and follows its confirmation in March that it is in discussions over a potential deal for £42 million turnover regional firm Moore Barlow, which would be its largest acquisition to date.
Knights said it was continuing to progress discussions with Moore Barlow, and added that it has a “healthy pipeline” of further acquisition opportunities.
Consolidation strategy
Knights has been one of the UK's most acquisitive law firms since listing on the London Stock Exchange in 2018.
The firm has now completed 29 acquisitions, using M&A to build a national regional practice focused on premium legal services outside London.
Chief executive David Beech said the firm had doubled revenue over the past five years while continuing to invest in its operating platform.
"Our continued investment in the business has strengthened our ability to take advantage of opportunities in our growing and structurally changing regional segment of the UK legal sector," he said.
Knights also said it had identified the South East as a strategic growth market, citing its affluent client base and ability to attract lawyers seeking premium work without commuting into central London. The acquisitions of Birkett Long and Rix & Kay further expanded the firm's presence across the region.
Cash discipline
Alongside growth, Knights continued to emphasise cash generation and working capital discipline - key metrics for law firms.
Debtor days improved from 31 to 30, while lock-up fell from 86 to 84 days, helping the firm generate cash conversion - how efficiently a firm turns profits into cash - of 163% despite spending around £17 million on acquisitions during the year. Net debt remained broadly flat at £65.4 million.
The firm also said it had expanded its revolving credit facility from £100 million to £159 million, giving it additional firepower to pursue future acquisitions.
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