Knights Share Discussion Threads

[hazl] 12/7/2019 12:49

OT'
M Widget...you seem in the know about these things I tried out the PLUS1 on somebody's post. It went through,my wallet showed that but no show in the posters post.

[hazl] 11/7/2019 12:16

this is where the previous poster was perhaps not upto date...

'Knights group was one of the first to move from the traditional partnership model to a corporate structure in 2012 and has since grown rapidly. Knights has specialists in all of the key areas of corporate and commercial law so that it can offer end-to-end support to businesses of all sizes and in all sectors. The Company's main focus is on the UK's secondary markets,offering big city quality expertise from a regional cost base. Currently, Knights operates from eight offices located in Cheltenham, Chester, Derby, Leicester, Manchester, Oxford, Stoke and Wilmslow.' from this is money.

[martywidget] 11/7/2019 10:49

Powerpoint presentation for anyone that hasn't looked at it - Knights Full Year Results Presentation
09.07.2019

[hazl] 11/7/2019 10:16

I think they both look interesting but it is true that the general stock market
has to be considered as well.

[hazl] 11/7/2019 10:13

Well it certainly seems to have been more popular than your Gateley,I would agree.

[jamgr0] 11/7/2019 09:17

Why is this company valued at over £200m? I'm at a loss to understand.

[hazl] 10/7/2019 21:56

lastly to provide balance Jim Rogers thoughts on the future recession.......

[hazl] 10/7/2019 21:46

I have prepared for a market crash several times only to find the market marches on.
What to do?
I think the only answer is to continually assess and definitely not tie all your cash up into investments that are tricky to get out of.
But that's up to the individuals to decide.
I personally think we will limp on to the end of the year but who knows?

[hazl] 10/7/2019 21:41

'The legal market generally feel pretty buoyant. All areas are doing well. As for Brexit: it's a case of wait and see. Clients are trying to prepare but not sure where to look.” Another training partner said simply: “It's a rollercoaster.'

'Lawyers are in hot demand to explain to clients in every sector how they should position themselves for Brexit; some commentators have said wryly that the only people who will benefit from Brexit are lawyers and consultants. Generally larger law firms are doing more Brexit-related work, as their clients are more likely to be businesses with international or European operations. “Brexit is generating enormous amounts of work for us,” a partner at a magic circle firm told us. '

[hazl] 10/7/2019 21:31

I could easily pick out a firm with poor results and another whose profits had doubled in a sector.
This firm is doing well by all accounts.
A challenge for you find me a better one!

We are all wary of 2020 I think and many people expect that the recession has to come at some point.
But the outlook appears good for this firm from what is reported.

Where do you put your money otherwise?

I tend to spread the risk.
Also recessions don't last for ever,though some people think this one won't necessarily be short.

In the end it comes down to personal choice, people must take their own risks/decisions and not put money into anything in the stock market that they can't afford to lose.

[edmondj] 10/7/2019 19:56

Depends how steep and long is the mooted downturn ahead. If moderate then potentially demand e.g. for litigation services in disputes arising (exposure of the 'bezzle' and other issues previously swept under the carpet) then lawyers + rationalising firms could benefit. But if more severe e.g. if the Fed cuts rates this summer only to have no stimulus power come a more serious downturn, and if the BofE is forced into rate rises to defend sterling/check inflation amid a disruptive Brexit, then service businesses could get hit hard. Mitigating point for an acquirer, that purchase prices could be negotiated down although some partner/vendors might prefer to defer sale.

From Christie Group's 2008 results (similar plc model, acquiring/integrating business service firms/partnerships):

Chairman's Statement

Transaction volumes pass the nadir

The challenging and widely reported trading conditions, which affected most sectors of the economy during 2008, continue in 2009. Christie Group has not been immune from these conditions and has experienced an exceptionally difficult year, as detailed in the update released on 5 December 2008. The Board has acted swiftly to address the challenges faced by the Group, reducing costs and refocusing the activities of the complementary operating divisions.

Notwithstanding these actions, and a reported profit after tax at the half year of £0.9 million, I have to report a trading loss on continuing activities, before exceptional items and after attributable tax of £1.99 million (2007: profit of £7.7 million). In addition we had £2.0 million of exceptional reorganisation costs, to tailor the business for current market conditions. The results reflect the severity of the second half downturn and I would, in particular, cite the period of the Lehman Brothers' collapse in September as the point at which confidence in the business sales market showed a dramatic downturn.

[hazl] 10/7/2019 18:29

Ah is that a little 'w' on the chart?!

[hazl] 10/7/2019 14:53

'Conclusion
With an enormous arbitrage between private company acquisition prices and quoted valuations, I suspect there are a good few years of strong share price performance to be enjoyed by shareholders, until valuations become high at which point greed usually spoils it. That's a long way away yet.'

Jeremy Grimes thanks Bbluesky

[hazl] 10/7/2019 11:31

Edmond thanks for that.
There have been a whole lot of changes in this industry and I don't know if you aware of that?
Seens to me that firms like this are taking advantage of the changes.

[hazl] 10/7/2019 09:51

Good luck with GTLY also.
Is that going down the acquisition route?

[hazl] 10/7/2019 09:50

Yes it's summer lull as well.
Searching for 'safer' ones is difficult in these uncertain times.

Even then it can't be guaranteed.

[bbluesky] 10/7/2019 09:22

Yes, impressive results. GTLY results 16 July. Should echo KGH. Just got to be patient in these markets,I guess!

[hazl] 10/7/2019 08:44

Thank you very much bbluesky.
This has 'winner' written al l over it in my opinion!

[bbluesky] 10/7/2019 06:58

From Interactive Investor's Jeremy Grimes and his The Financial Grimes column, which I recommend as good reading:

Knights Group (LSE:KGH) is a UK law firm.

News First post IPO results show revenue up 51% to £52.7 million and EBITDA also up 51% to £11.3 million. PBT £9.8 million and EPS up 55% to 11.88p. Net debt £14.1 million. Average fee per earner up 22% to £131k. Outlook refers to a good start to year and confident of delivering continued growth. The company completed four acquisitions in the year and has a "healthy" pipeline.
Estimates The 21 May trading update said Adj. PBT expected to be slightly ahead of market expectations.

Valuation PER 16.5X yield 1.2%. ROCE is c 15%.

Conclusion With an enormous arbitrage between private company acquisition prices and quoted valuations, I suspect there are a good few years of strong share price performance to be enjoyed by shareholders, until valuations become high at which point greed usually spoils it. That's a long way away yet.

[hazl] 09/7/2019 21:51

thank you marty

[hazl] 09/7/2019 19:34

Doubled profits says it all!

[martywidget] 09/7/2019 19:22

Video:

Knights plc - Full Year Results 2018/19
Tue, 09 Jul 2019, 07:05am BST

David Beech provides an update following the publication of Knights plc's maiden set of full year results for the year ended 30th April 2019.

[hazl] 09/7/2019 15:17

Great results expected a bit more of a share price increase.
I guess its the summer lull.
Oh well at least there is a dividend to look forward to.