Annual Report & Accounts 2026
07
STRATEGIC REPORT
CHAIRMAN’S STATEMENT
IT IS MY PLEASURE TO INTRODUCE KEYSTONE LAW’S RESULTS FOR THE YEAR ENDED 31 JANUARY 2026.
The business has delivered another strong performance, both operationally and financially. A record number of fee earners have joined this year, 61 new principals and 63 pod members, increasing total fee earners by 13.5%. Our lawyers have taken advantage of the sustained, broad based client demand to drive revenue up by 17.9% to £115.2m, producing adjusted PBIT1 of £12.9m (2026: £11.6m) and adjusted PBT1 of £15.3m representing a 13.3% margin (2026: £12.7m, 13.0% margin). PBT was £14.7m at a margin of 12.7% (2026: £11.7m, 12.0%), whilst retained earnings were £11.1m (2026: £8.6m). The quality of these earnings is extremely high, as demonstrated by the high level of cash generation at £11.6m pre dividends (2026: £7.2m).
DIVIDEND
The strong level of cash generation from our business model ensures that we are well placed to return value to our stakeholders through our progressive dividend policy in line with which we are proposing to pay a final ordinary dividend of 17.2p. Having paid an ordinary interim dividend of 7.5p (2026: 6.2p), this will bring the total ordinary dividend for the year to 24.7p (2026: 20.2p). This will bring the total value of dividends paid since IPO to approximately £54m, or equivalent to just over 169p2 per share, which is 91% of the adjusted earnings1 generated by the business over the same period.
OUR AI JOURNEY
AI, and the successful application of its technology, has been a significant focus point of the management team this year. We firmly believe that the successful adoption of this new technology will enhance the Keystone proposition for both lawyers and clients. We are focused on identifying and implementing tools and solutions which genuinely improve our service delivery whilst driving user adoption through education and training. We believe that this approach provides further support for our successful growth strategy.
THE KEYSTONE COMMUNITY AT THE HEART OF OUR SUCCESS
Our success is delivered by, and is a reflection of, the people who comprise the Keystone community. Keystone is different by design and this difference extends to the emphasis we place on developing, maintaining and enhancing the Keystone community which sits at the heart of the business. Our community focused business model is a real differentiating factor in attracting and retaining lawyers. By building genuine relationships across the business our approach delivers real value to our clients, as they benefit from multi-lawyer and multi-disciplinary teams which work together with a real understanding and appreciation of both their technical and cultural needs. All of this underpins the long-term sustainable creation of value for all stakeholders. 1
Adjusted PBT, adjusted PBIT and adjusted earnings are calculated by adding share-based payment costs, gains on assets held at fair value and amortisation of intangible assets to PBT, PBIT or earnings respectively. Details of these calculations are shown in the Financial Review on page 13.
2 Sum of the Ordinary DPS and special dividends DPS paid and proposed for the years ended 31 January 2019 to 31 January 2026.
ROBIN WILLIAMS
Non-executive Chairman
STRATEGIC REPORT
CHAIRMAN’S STATEMENT
IT IS MY PLEASURE TO INTRODUCE KEYSTONE LAW’S RESULTS FOR THE YEAR ENDED 31 JANUARY 2026.
The business has delivered another strong performance, both operationally and financially. A record number of fee earners have joined this year, 61 new principals and 63 pod members, increasing total fee earners by 13.5%. Our lawyers have taken advantage of the sustained, broad based client demand to drive revenue up by 17.9% to £115.2m, producing adjusted PBIT1 of £12.9m (2026: £11.6m) and adjusted PBT1 of £15.3m representing a 13.3% margin (2026: £12.7m, 13.0% margin). PBT was £14.7m at a margin of 12.7% (2026: £11.7m, 12.0%), whilst retained earnings were £11.1m (2026: £8.6m). The quality of these earnings is extremely high, as demonstrated by the high level of cash generation at £11.6m pre dividends (2026: £7.2m).
DIVIDEND
The strong level of cash generation from our business model ensures that we are well placed to return value to our stakeholders through our progressive dividend policy in line with which we are proposing to pay a final ordinary dividend of 17.2p. Having paid an ordinary interim dividend of 7.5p (2026: 6.2p), this will bring the total ordinary dividend for the year to 24.7p (2026: 20.2p). This will bring the total value of dividends paid since IPO to approximately £54m, or equivalent to just over 169p2 per share, which is 91% of the adjusted earnings1 generated by the business over the same period.
OUR AI JOURNEY
AI, and the successful application of its technology, has been a significant focus point of the management team this year. We firmly believe that the successful adoption of this new technology will enhance the Keystone proposition for both lawyers and clients. We are focused on identifying and implementing tools and solutions which genuinely improve our service delivery whilst driving user adoption through education and training. We believe that this approach provides further support for our successful growth strategy.
THE KEYSTONE COMMUNITY AT THE HEART OF OUR SUCCESS
Our success is delivered by, and is a reflection of, the people who comprise the Keystone community. Keystone is different by design and this difference extends to the emphasis we place on developing, maintaining and enhancing the Keystone community which sits at the heart of the business. Our community focused business model is a real differentiating factor in attracting and retaining lawyers. By building genuine relationships across the business our approach delivers real value to our clients, as they benefit from multi-lawyer and multi-disciplinary teams which work together with a real understanding and appreciation of both their technical and cultural needs. All of this underpins the long-term sustainable creation of value for all stakeholders. 1
Adjusted PBT, adjusted PBIT and adjusted earnings are calculated by adding share-based payment costs, gains on assets held at fair value and amortisation of intangible assets to PBT, PBIT or earnings respectively. Details of these calculations are shown in the Financial Review on page 13.
2 Sum of the Ordinary DPS and special dividends DPS paid and proposed for the years ended 31 January 2019 to 31 January 2026.
ROBIN WILLIAMS
Non-executive Chairman