Knights Share Discussion Threads

[hopeful holder] 13/6/2023 17:54

Unless I'm missing something here, these have become a good buy at this level. (I hesitate on using the word bargain, or at the bottom).

[0rient] 07/6/2023 10:19

I’m surprised at the pull back..did think it would head over 100p+ quite easily. Anyways using this pullback to purchase a few more :-)

[cockerhoop] 06/6/2023 10:45

Eezy,

They almost certainly also paid £2.3m contingent consideration for Langleys, Archers & Mundays due in H2 presuming the vendors remain with the respective businesses.

[d40eq6] 19/5/2023 14:23

Cashflow is better than most peer law firms as they collect cash within 90 days of incurring the cost. The Industry average is about double. I think that's why the debt has come down. They have less locked up in work in progress and debts.

[eezymunny] 19/5/2023 12:31

"net debt of £35.6m at the period end" (end H1)

and now

"Net debt3 as at 30 April 2023 is expected to be c.£29m"

Cash flow never going to be the very best in this sort of biz but, £6.5 debt paid down in H2, £1.5 gone out for Meade acq, plus 850k for divi, suggests cash generation of almost £9m in H2?

[kalai1] 19/5/2023 11:55

Knights Group plc issued a trading update for the year ended 30 April 2023 this morning. The Group anticipates full year revenue of c.£142m, up by 13% compared to the prior year (2022: £125.6m), with underlying PBT anticipated to be c. £21.5m, a 19% increase on the prior year (2022: £18.1m). The balance sheet remains healthy with net debt as at 30 April 2023 expected to be just c.£29m. The Group continues to expand and attract high quality talent and is also making strong progress in driving operational improvements and productivity across the business, with the benefits of this expected to be realised in the new financial year and beyond. Acquisitions are integrating well, acquisitive expansion is ongoing with the Group agreeing to purchase St James Law Limited and Baines Wilson LLP earlier this month. Valuation is very attractive with forward PE rtio at just 4x ranking the share 2nd out of 58 names in the Professional & Commercial Services market. Share price still lacks positive momentum, the remainder of the investment case looks attractive. BUY...

...from WealthOracle

[elsa7878] 19/5/2023 11:02

Suggest you look at the quality of earnings and cashflow generation.

[eezymunny] 19/5/2023 08:45

Looks very cheap on price/sales (.6 vs 1.3 at GTLY, 1.8 at KEYS)? for a company making such decent net margins, and on a PE basis (<5?). Danger of course is falling revenues, but not sure if legal firms get too badly affected in recessions? It's a people business, so you'd think easy enough to right size. Could trade at 2x or even 3x the price and nobody would bat an eyelid.

[investing2retire] 19/5/2023 08:17

yes i bought again at the open. good results

[blondviking] 19/5/2023 08:09

A good start, this is going to fly!

[0rient] 19/5/2023 07:59

Strong update! Revenue increasing, Profit increasing, Revenue streams increasing...ridiculous that this company only has a 70m market cap!! Big re-rating on its way..one year from now 200p+ :-)

[blondviking] 19/5/2023 07:57

Good results - The Group anticipates full year revenue of c.GBP142m, up by 13% compared to the prior year (2022: GBP125.6m),

[investing2retire] 18/5/2023 09:26

i think some profit taking before results. i sold half of mine at 94p 2 days ago. looking to buy back in around 80p mark but a smaller position just in case results arent great

[lennonsalive] 16/5/2023 14:50

Bit of a sell off today, maybe hitting a stop or two

[nakedmolerat] 09/5/2023 16:23

Hopefully past 100p and then up to 120p

[investing2retire] 09/5/2023 15:19

yes nakedmolerat, ive been building positions again at 70p,80p and 90p most recently. looking for 120p again

[nakedmolerat] 04/5/2023 16:00

I've been holding these on spreadbet and shares, nice to see the rise recently. Buyers coming in for the value of these shares?

[blondviking] 02/5/2023 07:55

Expansion continues - Knights today announces that it has agreed to acquire St James Law Limited (trading as St James' Square), a Newcastle-based commercial law firm, and Baines Wilson LLP (Baines Wilson) an independent law firm headquartered in Carlisle.

[tradertrev] 17/4/2023 08:55

Not sure why INCE administration is beneficial. Demonstrates to me that there is a frailty to law firm business models, particularly highly acquisitive ones, where there isn't much of a common culture.

[se81] 13/4/2023 16:39

Surprised we haven't seen more of a rally here with INCE going into administration- suspect this is beneficial for Knights generally (even if they don't try and acquire anything from the administrators which would go against the narrative of organic growth and margin improvements at the interims)

[elsa7878] 04/4/2023 08:49

Stifel. Target 180p. Eps 19p for 2023 / 21p for 2024. FWIW.

[se81] 03/4/2023 10:20

Seller finished? or lull a few more buyers in before a reload? hmmmmmm.....

[lennonsalive] 24/3/2023 17:57

New yearly lows

[se81] 20/3/2023 14:22

Not sure it was posted at the time of the HY results (I certainly missed it) but there was quite a detailed presentation available on their website- not much of a stretch to garner the bull & bear points from it

hxxps://www.knightsplc.com/company/investors/