Knights Professional Services Limited - Statement

The Board regularly engages with shareholders of the ultimate parent company, Knights Group Holdings plc, and is committed to an open dialogue and fair and equal treatment of all shareholders. The Board receives regular updates on shareholder engagement and analyst commentary and receives presentations from corporate brokers on investor perception.

The Executive board have a full programme of engagement with shareholders and present to the Group’s largest shareholders, as well as sell-side analysts, following the full and half year results. The CEO and CFO also meet regularly with individual shareholders and analysts.

The Annual General Meeting (AGM) is an important part of effective shareholder communication, with all shareholders having the opportunity to hear from the Company and ask questions. The Board welcomes the opportunity to engage with our shareholders, typically providing a brief update presentation at each AGM and with all Directors available to answer questions.

The Board would, however, welcome greater participation from shareholders, and the Company is looking at other ways to broaden the participation of all shareholders.

During the year engagement with employees, whilst the business has worked in a hybrid remote/office environment, has been more important than ever. The Directors have ensured constant engagement throughout the period virtually and in person with employees and the Board has received regular updates of the outcome of this engagement via the Executive Directors.

The Company continues to work hand in hand with its regulator, the SRA, and its complaints handling body, the Legal Ombudsman, in ensuring that it abides by its professional and regulatory duties and obligations in an open and transparent manner.

The Board conducts regular regulatory compliance reviews, with a dedicated Compliance section in every board pack to analyse client risks.

Through the CEO and CFO, the Board is in contact with the Solicitors Regulation Authority and, as an entity of an AIM listed Group, the Company is in regular contact with its Nominated Advisor and the Financial Conduct Authority.

Knights takes a proactive approach to communicating with clients and updates are regularly provided to the Board by the CEO.

The CEO and selected members of the leadership team also meet existing and potential clients regularly to maintain its strong relationships.

The Company’s procurement policy includes a commitment to sustainable procurement and mitigation against the risk of modern slavery, bribery or corruption anywhere in the supply chain. The Company also aims to conduct itself to the highest standards and pay all invoices promptly. The Board plays a key oversight role in these policies.

Knights’ Environmental, Sustainability and Governance strategy is focused on adding value to the communities in which we operate. Detailed updates on this strategy and associated programmes of work are provided to the Board of the ultimate parent company and discussed on its Audit Committee.

During the year, the Company acquired two law firms, providing additional scale, practice areas and presence in a number of key geographical markets in order to allow it to deliver its strategy to be the leading legal and professional services business outside London. The acquisitions provide enhanced revenue generation which in turn provide returns to shareholders in the longer term and enhanced employment opportunities as part of a wider Group.

Prior to completing the acquisitions, the Board considered the effects that the acquisitions would have on the Group’s gearing and creditors in order to ensure that executing the acquisitions would not adversely impact creditors interests. The Board also considers how each acquisition would fit in with the culture of the business and the long-term value creation strategy of the wider Group.

The Group’s business plan is to drive sustainable growth in the long term, which is in the interest of all of its stakeholders. The Board has paid close consideration to this objective in establishing and approving the 2022 budget and taking measures to continue to improve cash collection and lock up days.