Knights Group Holdings

KGH.L

Specialty Business Services · Industrials

Price

173.00 GBp

-3.00 (-1.70%)

Market Cap

£148.7M

Exchange

London Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Apr 30, 2026

How the score breaks down

Quality

Good

Growth

Good

Cash Flow

Strong

Stability

Good

Valuation

Good

Dividends

Strong

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Share count rising — dilution

+8.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 83.7M (2022) → 91.0M (2026)

Winston Score History

The full picture

Knights Group Holdings is a UK-based legal and professional services firm. It provides legal advice and business services to companies and individuals across England and Wales. The firm has grown by acquiring smaller regional law firms and bringing them together under one brand, making it one of the larger listed legal businesses in the UK.

Knights makes money by charging clients fees for legal work, such as commercial law, real estate, employment, and dispute resolution. It operates entirely in the UK, with offices spread across regional cities rather than focusing on London. Its competitive edge comes from its consolidation strategy — buying up fragmented regional firms and cutting costs through shared services. However, its low return on invested capital suggests acquisitions have not yet generated strong financial returns, and the business carries integration risk if newly acquired firms prove difficult to absorb or if deal flow slows down.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+34.5% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+249.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

£0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

46.3%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

£8M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Knights Group Holdings grew revenue 35% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

92.4%

Premium pricing power — 92.4% gross margin

Profit after running costs

Operating Margin

7.9%

Modest — 7.9% operating margin

Return on the money invested

ROCE

14.7%

Good — 14.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+28.4%

Fast-growing sales (+28.4% YoY)

Profit growth

EPS YoY

-34.9%

Earnings shrinking (-34.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

510%

Turns 510% of profit into real cash

Spare cash per sale

FCF Margin

8.6%

Modest free cash flow (8.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.68

Moderate — manageable debt (0.68)

Covers its interest

Interest Cover

3.05x

Tight — interest eats into profit (3.1x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

31.1x

Pricey — P/E 31.1

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+25.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (31.1 → 6.0)

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Dividends

Dividend

Dividend Yield

2.77%

Moderate income — 2.77% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+23.8%

Dividend growing fast (23.8% YoY)

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