Equity Development - Knights Group Holdings - Acquisition of Moore Barlow drives c.11% PBT uplift
Research on Knights Group Holdings Plc (KGH:LON) from Equity Development
Knights has announced the complementary acquisition of the commercial and private wealth service lines of Moore Barlow LLP. Operating in the affluent South-East market, this is another significant, compelling acquisition for Knights that will add around 160 fee-earners. Generating c.£30m of revenues, Knights is paying only 0.9x EV/Revenues, structured as £18m initial cash consideration and a further £9m over three years, subject to conditions. We raise our FY29E group revenue and Adj. PBT by c.11% and increase our Fair Value per share by 5% to 330p, equivalent to 10x cal 2027 PER. Hence, trading on under 5.5x cal 2027 PER we believe Knights’ rating materially undervalues its quality growth prospects.
View Full ResearchDisclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
