We are pleased to announce the following trading update for the year ended 30 April 2026 (‘FY 26’).
The Board expects revenue for FY 26 of c £193m, up circa 7% on the prior year and ahead of consensus expectations, and underlying operating profit of between £21m – £22m, in-line with consensus expectations. The c 11.1% adjusted operating margin (FY25: 11.7%) reflects changing business mix and higher than anticipated transactional deferment as we progressed through Q4. The Group ended the year with net debt (excluding IFRS 16 leases) of £25.3m (FY25: £6.6m).
As previously reported, after a strong start to FY 26 the Group experienced a slowing of certain transactional services activity through Q2 as uncertainty around the UK November Budget caused some client activity to be paused. Although we saw a degree of normalisation during H2, more recent developments in the Middle East, combined with a worsening medium-term interest rate outlook, also impacted client sentiment, resulting in a mix of transactional timelines pausing and extending beyond FY 26 in both our Corporate and Property Platforms. A further feature of the year has been the strong growth in targeted contentious workstreams, which has resulted in the Group building significant contingent unbilled time. These workstreams are highly attractive from a margin perspective albeit remain dependent on successful outcomes for revenue and profit recognition. Overall the Group’s revenue performance was strong, reflecting broader improvements in utilisation and the diversified nature of the business across all of our Platforms.
The Group also completed the acquisition of Groom Wilkes & Wright (“GWW”) in period, which has been trading strongly and ahead of our expectations since acquisition. The acquisition consideration paid was cash-weighted, which alongside an increase in working capital contributed to the increase in net debt.
As previously reported, the Group took cost actions during the year resulting in fee earner headcount marginally down against the start of the year and average team utilisation improving. Within this the Group has also selectively hired in FY 26, especially in high-value work areas, including contentious litigation where activity levels continue to be strong.
The Group remains focused on margin improvement including from its system investments, such as Jylo, the AI platform, and returns from selective hiring in key growth areas, whilst continuing to actively manage its cost base, with a clear focus on continuing to maximise utilisation across the business and gaining operational efficiencies in FY 27.
The Group expects to announce its full year results in mid July 2026.