KIAMA coach Luke Muttdon admitted the Knights were handed a lesson by premiers Gerringong on Sunday.
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Previously unbeaten atop the Group Seven ladder, Kiama were thumped 32-12 at home.
“It was probably something we needed,” Muttdon said.
“We got taught a bit of a lesson by the premiers, we just didn’t build much pressure.”
Boosted by the return of goal kicking ace and grand final hero Joel Roberts, Gerringong now move ahead of them on the Group Seven ladder, after leading 18-6 at half-time.
Lions coach Mick Cronin said the performance was easily their most impressive this year.
“I’m very happy,” he said.
“We’ve been going fairly all year without playing great, but this is as good as we’ve played all year.
“Obviously because they were undefeated and (the Kiama-Gerringong derby) usually brings out the best in both sides.
“Out defence was a lot better and we moved the ball a better.”
Joel Doosey scored two tries, as Roberts nailed six conversions.
In other games, Jamberoo produced an outstanding second-half to beat Berry 16-6 after trailing at half-time.
The Sharks easily accounted for Milton-Ulladulla 44-8, while Warilla kick-started their campaign with a thumping 64-6 win over Albion Park.
GROUP SEVEN
Ladder (after seven rounds): Gerringong 11, Kiama, Shellharbour, Jamberoo, Port Kembla 10, Jets 7, Warilla 6, Albion Park-Oak Flats 4, Berry 2, Milton 0