Knights Group Holdings PLC on Tuesday said it achieved a ‘robust’ financial year with a double-digit revenue rise, though profit fell significantly due to increased staff costs.

Shares were up 13% at 107.05 pence each on Tuesday morning in London.

For the year that ended April 30, the Newcastle, England-based legal and professional services posted a pretax profit of £1.1 million, down 80% from £5.5 million the year before. Staff costs increased by 23% to £76.9 million from £62.7 million.

Revenue climbed by 22% to £125.6 million from £103.2 million. However, almost all of that came from acquisitions, rather than organic growth.

‘This growth in the year principally reflects acquisitions, with in-year acquisition contributing about £5.8 million and the full year impact of prior year acquisitions delivering an additional £14.8 million, giving total revenue growth from acquisitions of £20.6 million,’ the company explained.

Knights Group said it has completed three acquisitions during the period, which expanded its presence in Yorkshire and in the north east and east of England. Its acquisition of law firm Coffin Mew after the financial year-end also expanded the firm’s presence in the south of England.

Chief Executive Officer David Beech said: ‘We have delivered another robust financial performance despite the short-term challenges experienced in the fourth quarter, with a positive start to the new financial year supported by the acquisitions completed in prior years.’

Knights declared a total dividend of 3.50 pence per share, versus none the year before.

Looking ahead, Knights said the business is highly ‘resilient’ and it is confident in its medium-term outlook despite the uncertainty around economic conditions.

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