Knights Group Holdings Plc (KGH) AI Stock Analysis

• Market Cap: £120.57M
• Dividend Yield: 3.3%
• Average Volume (3M): 158.15K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.94
• Revenue Growth: 5.40%
• EPS Growth: 19.01%
• Country: UK
• Employees: 1,429
• Sector: Industrials
• Sector Strength: 66
• Industry: Corporate Services
• EPS (TTM): 0.13
• Shares Outstanding: 85,813,470
• 10 Day Avg. Volume: 213,832
• 30 Day Avg. Volume: 158,148
• PEG Ratio: 0.56
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.74
• Price to Cash Flow (P/CF): 3.80
• P/FCF Ratio: 0.00
• 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: 170.00p
• Price Target Upside: 23.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Knights Group Holdings Plc demonstrates robust financial performance with consistent revenue growth and improving profitability, complemented by a stable balance sheet. Technical analysis shows strong upward momentum, though caution is advised due to overbought indicators. The stock is attractively valued and offers a good dividend yield. The strategic acquisition of IBB Law LLP underscores the company's growth potential. Overall, the stock is well-positioned for future growth but should be monitored for any potential short-term corrections due to technical analysis signals.

Positive Factors

Acquisitions

The acquisition of IBB Law LLP significantly increases Knights Group's scale in the South East of England, enhancing its service offerings and market presence.

Negative Factors

Leverage Concerns

Leverage at 1.4x is elevated compared to professional services peers, posing a challenge for a re-rating.

Organic Growth Challenges

Organic growth remains challenging for Knights Group, as indicated by past performance metrics ranging from -0.1% to 1.9%.

Knights Group Holdings Plc Business Overview & Revenue Model

Company Description

Knights Group Holdings Plc (KGH) is a prominent legal and professional services business based in the United Kingdom. The company operates within the legal services sector, offering a comprehensive range of services including corporate, commercial, real estate, and private client services. Knights Group Holdings Plc is known for its innovative approach to delivering high-quality legal counsel and practical commercial advice, leveraging its network of offices across the UK to serve a diverse clientele.

How the Company Makes Money

Knights Group Holdings Plc generates revenue primarily through the provision of legal services to businesses and individual clients. The company charges fees for its legal counsel, which can be structured on an hourly basis, fixed-fee arrangements, or through alternative fee models depending on client needs and project scope. Its revenue streams are diversified across various practice areas, including corporate law, real estate, dispute resolution, and private client services. Additionally, KGH enhances its earnings through strategic acquisitions of smaller legal practices, which expand its geographical footprint and client base. Partnerships with other professional service providers and technological investments also contribute to its revenue by improving service delivery and operational efficiency.

Knights Group Holdings Plc Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
149.96M	142.08M	125.60M	103.20M	74.25M
	Gross Profit
56.95M	130.47M	48.74M	40.49M	28.68M
	EBIT
19.96M	16.06M	15.98M	17.11M	12.77M
	EBITDA
31.72M	26.80M	14.18M	24.81M	9.81M
	Net Income Common Stockholders
9.85M	7.94M	-2.53M	3.40M	1.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.45M	4.04M	4.10M	4.78M	12.74M
	Total Assets
219.10M	212.17M	206.28M	194.30M	159.74M
	Total Debt
81.19M	78.18M	79.68M	68.56M	52.49M
	Net Debt
75.73M	74.14M	75.58M	63.77M	39.75M
	Total Liabilities
118.84M	119.36M	120.62M	111.61M	83.79M
	Stockholders Equity
100.26M	92.81M	85.66M	82.69M	75.95M
Cash Flow		Free Cash Flow
14.63M	14.41M	7.52M	2.52M	3.88M
	Operating Cash Flow
22.83M	16.33M	10.11M	7.08M	6.40M
	Investing Cash Flow
-14.33M	-7.85M	-10.33M	-6.65M	-18.38M
	Financing Cash Flow
-7.09M	-8.67M	1.52M	-10.24M	19.81M

Knights Group Holdings Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 138.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 138 is above the 20-day moving average (MA) of 128.56, above the 50-day MA of 120.00, and above the 200-day MA of 123.17, indicating a bullish trend. The MACD of 5.47 indicates Negative momentum. The RSI at 84.02 is Negative, neither overbought nor oversold. The STOCH value of 80.21 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
KGH	72 Outperform	£120.57M	10.59	9.82%	3.30%	5.40%	19.01%
Sector *	62 Neutral	$8.11B	13.34	1.17%	3.02%	4.16%	-15.14%

Knights Group Holdings Plc Corporate Events

Knights Group Expands South East Presence with IBB Law Acquisition

Knights Group Holdings Plc has announced the acquisition of IBB Law LLP, a law firm based in the South East, to enhance its presence in this lucrative market. The acquisition, valued at £30m, is expected to be immediately earnings enhancing and aligns with Knights’ strategy of growth through selective acquisitions. IBB’s strengths in corporate, real estate, and private wealth complement Knights’ existing services, and the integration is anticipated to provide a strong platform for further organic growth in the region.

Knights Group Holdings Announces Change in Major Shareholder’s Voting Rights

Knights Group Holdings PLC has announced a change in the voting rights held by Ameriprise Financial, Inc. The change, effective as of February 14, 2025, reflects a decrease in Ameriprise’s voting rights from 13.073% to 10.706%, indicating a significant shift in the shareholder’s stake. This adjustment in voting rights could influence the company’s decision-making processes and affect its strategic direction, impacting stakeholders aligned with Ameriprise’s interests.

Knights Group Chairman Buys Significant Shareholding

Knights Group Holdings Plc announced a notification under the Market Abuse Regulation regarding transactions by its Chairman, David Wilson, who purchased a significant number of ordinary shares in the company. These transactions, conducted on the London Stock Exchange’s AIM, reflect a substantial investment in the company, possibly signaling confidence in its future performance and potentially impacting stakeholder perceptions.

Knights Group Holdings Reports Strong Half-Year Growth and Expands Market Presence

Knights Group Holdings Plc reported a strong half-year financial performance, with notable increases in profitability and revenue driven by acquisitions and strategic focus on higher-margin areas. The company achieved a 25.9% rise in underlying profit before tax to £14.6m and a 5.4% growth in revenue to £79.4m. Knights continues to enhance its market reputation through significant client wins and recruitment, while maintaining operational excellence and cost discipline. The integration of recent acquisitions such as Thursfields Legal Limited has expanded its regional footprint and contributed to organic growth. The company remains confident about future growth prospects, supported by a robust acquisition pipeline and ongoing investments in technology.