Listed law firm Knights is forecasting an increase in full-year revenue for 2020 despite the impact of coronavirus.
In a recent trading update, the professional services business – which has 15 offices across the UK including in Birmingham, Derby, Leeds, Manchester, Oxford and York – announced it expects turnover to rise by 40 per cent from £52.7 million to £74 million in 2020, while pre-tax profits are expected to increase by 44 per cent to £13.5 million – compared to £9.4 million in 2019.
The firm says the results reflect a ‘strong performance’ through the second half of its financial year, despite the impact of the lockdown which resulted in short-term disruption to ‘transact on behalf of its clients.’
Knights has also seen a 20 per cent decline in instructions in the last few weeks.
However, the board said that it is encouraged by early signs that market conditions have stabilised following the initial disruption brought on by the pandemic.
David Beech, CEO of Knights, said: “Our early actions have positioned the group well for the current market environment and I am proud of the way in which our people have responded with such agility to working from home as they continue to deliver outstanding service to our clients.
“We are pleased with how our recent acquisitions have performed, having most recently successfully completed and integrated Shulmans and ASB.
“We are confident that our model and culture will enable us to emerge in a stronger position from this current environment, and that remains our focus in the near term. “Beyond the near term, we anticipate that Covid-19 will only accentuate the opportunities for our resilient, well-invested, diversified and cash generative business in the highly fragmented and often under-invested market for legal services outside London.”
Knights expects to provide a further update on trading with its full year results announcement at the end of July.