Knights Group Shares Slip Despite £27m Moore Barlow Acquisition

Shares in Knights Group Holdings (LON: KGH) fell on Friday, dropping around 2% to 172.5p, after the AIM-listed legal services consolidator confirmed the acquisition of Moore Barlow LLP’s commercial and private wealth divisions for total cash consideration of £27m.

The South East-focused deal, which follows Knights’ announcement in March 2026 of preliminary discussions, will see the firm absorb roughly 160 fee earners from the 220-year-old regional practice, best known across Hampshire, Surrey and the wider South East.

Moore Barlow’s Personal Injury, Clinical Negligence and Court of Protection divisions will be sold separately ahead of completion, leaving Knights with the commercial and private wealth business — around 70% of Moore Barlow’s revenue, equivalent to roughly £30m.

Of the £27m consideration, £18m is payable on completion, expected 1 November 2026, with the balance staggered over three annual instalments. Knights said the deal would be earnings enhancing in its first full year, targeting an 18% PBT margin once synergies are realised, up from an underlying c.4% EBITDA margin currently.

Despite management’s upbeat framing — CEO David Beech called it a “compelling opportunity” to deepen expertise in Real Estate, Private Wealth and Landed Estates — investors appeared cautious, possibly reflecting the deferred consideration structure, integration risk, and the modest starting margin of the acquired business ahead of promised synergy gains.

Knights said it expects covenant net debt/EBITDA of around 1.5x by financial year-end, with the acquisition funded via existing banking facilities, suggesting balance sheet headroom remains despite the cash outlay.