Knights Group Holdings PLC - Newcastle-under-Lyme-based legal and professional services - Says Omicron and recent ‘macro conditions’ have slowed its growth to a greater extent than expected. Explains that greater illness rates amongst its employees, resulted in the business not benefiting from a faster return to office working. Adds that it has also seen a softening in business confidence and that it experienced a slowdown in corporate work.

Now expects to deliver revenue of £126 million and an underlying pretax profit of £18 million for the year ending April 30. In financial 2020, the company generated revenue of £103.2 million and an underlying pretax profit of £18.4 million. This means that revenue would rise by 23% but profit would drop 2.2%, year-on-year. Notes that it has not seen any significant losses of clients or fee earners.

‘Following a good first half, it is frustrating that recent events have held the business back from delivering a stronger performance in the second half,’ Chief Executive David Beech comments.

‘Beyond this near-term uncertainty, the opportunity to cement our leading position in key legal services markets outside London remains substantial and we are as well placed as ever to deliver on that opportunity.’

Current stock price: 190.58 pence, down 48% on Tuesday

12-month change: down 57%

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