Prime Highlights:
- Knights’ share price soared 70% in 2025, reflecting strong growth and investor confidence.
- Keystone Law and other leading firms showed steady revenue growth and successful acquisitions, highlighting a resilient legal sector.
Key Facts:
- Knights completed five acquisitions in 2025, including Thursfields, IBB Law, and Birkett Long, marking its 26th deal since listing.
- Gateley grew revenue by 9% and continued expanding its services with the acquisition of intellectual property firm Groom Wilkes & Wright.
Background:
The UK-listed legal sector saw dynamic performance in 2025, with Knights emerging as the standout performer. The law firm consolidator recorded a remarkable 70% increase in its share price, finishing the year at 179p, marking a strong return to levels last seen at its 2018 listing. Revenue for Knights rose 8% to £162 million, while underlying profit before tax grew 11% to £28 million, reflecting continued operational strength.
Knights has grown strongly through a series of strategic acquisitions. In 2025, it bought Thursfields and IBB Law and announced three more deals with Birkett Long in Essex, Rix & Kay in Sussex, and Le Gros Solicitors in Cardiff. These are the Knights’ 26th acquisitions since its listing, showing its aim to expand across the UK.
Keystone Law also performed well, with its share price rising 7% to 626p. The firm’s revenue rose 17% in the first half of the year, and revenue per principal went up 10% to £116,800. Adjusted profit before tax grew 20% to £7.3 million, reflecting solid business performance.
Other notable performers included Zigup, which reversed a three-year decline with a 19% rise in its share price, and DSW Capital, whose legal business grew 32% in revenue after acquiring Surrey-based DR Solicitors.
Although some law firms saw share price changes, the overall sector showed strength and innovation. Gateley, for example, continued to expand by acquiring intellectual property firm Groom Wilkes & Wright and reported 9% revenue growth in the first half of the year.
The legal sector has done well thanks to good market conditions. Many listed law firms have increased their revenue, made new acquisitions, and given good returns to shareholders. Mergers and strategic deals are helping UK law firms on AIM stay strong and keep growing across the country.
Knights’ Chief Executive, David Beech, will share insights on law firm growth at the Law Firm Growth Summit in London on 18 March, reflecting the firm’s continued leadership and commitment to sector innovation.
