Knights Group Holdings PLC on Wednesday said it is well-positioned to deal with costs arising from an increase in national insurance costs as it anticipates a profit surge amid a momentum in recruitment.

The London-based professional services company expects underlying pretax profit to have jumped 26% to £14.6 million in the six months to October 31, from £11.6 million a year ago.

This reflected an increase in the pretax profit margin to 18.4% from 15.4%.

Revenue is anticipated 5.4% higher at £79.4 million, compared to £75.3 million.

Knights noted an ongoing momentum in recruitment, as 23 senior professionals joined the company in the first financial half, up 15% from 20 a year ago.

Further, it highlighted ‘a good pipeline of further hires for the second half, driven by increased brand awareness and a growing reputation across the UK legal services market’.

The increase in national insurance contributions is expected to have an annualised cost impact of £2 million in financial year 2026, with financial 2025 set to be impacted in just one month.

Chief Executive Officer David Beech said: ‘It has been a strong first half and I am particularly pleased with our focus on profitable revenue growth. The continued improvement in margin reflects the increasing quality of our revenue, team and our continued focus on the cost base. We are encouraged by our strong momentum in recruitment which continues to build as Knights’ national scale and strong reputation are increasingly recognised. These factors, together with our ongoing focus on operational excellence, and early signs of a recovery in corporate and residential housing work, position us well for a strong performance in the second half in line with market expectations.’

The company will release half-year results on January 14.

Knights shares rose 2.3% to 110.00 pence each on Wednesday afternoon in London.

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