Latest Results
Full Year Results for the Year Ended 31 January 2025
- Revenue and profit in line with recently upgraded expectations(1)
- Recruitment conditions remained positive during 2025, with Keystone adding 50 new Principals, alongside organic growth in pods
- Proposed special dividend of 15p, reflecting balance sheet strength and continuing confidence in the outlook
Keystone, the tech-enabled platform law firm, is pleased to announce its full year results for the year ended 31 January 2025 (‘2025’ or the ‘Period’).
Financial Highlights:
- Revenue growth of 11.1% to £97.7 million (2024: £87.9 million)
- Revenue per Principal up 4% to £220k (2024: £212k)
- Adjusted PBT up 12.8% to £12.7 million (2024: £11.3 million) representing an adjusted PBT margin of 13.0% (2024: 12.8%)
- Adjusted basic EPS of 30.4p (2024: 27.4p)
- Cash generated from operations up 10.3% to £11.5 million (2024: £10.4 million) with operating cash conversion of 94.5% (2024: 96.1%); the Group retains a strong balance sheet with net cash of £9.7 million (2024: £8.4 million)
- Paid interim ordinary dividend of 6.2p per share and proposed final ordinary dividend of 14.0p per share bringing total ordinary dividend per share to 20.2p per share (2024: 18.3p)
- Proposed special dividend of 15.0p per share
Operational Highlights:
- Another positive performance with strong client demand across practice areas
- Keystone continues to capitalise on favourable recruitment market conditions with 283 new applicants in the Period (2024: 270)
- Added 50 high-calibre new Principals in the Period bringing total Principals to 455 (2024: 432)
- Ongoing organic growth in Pods with total Pod members increasing to 108 (2024: 102) and total fee earners growing to 576 (2024: 549)
- Quality focused recruitment strategy continues to reinforce Keystone as 'the premier platform law firm'
- 207 Keystone lawyers ranked in Legal 500 UK Solicitors 2025
- Over 25% of new joiners coming from the UK office of a large US firm or top 25 UK law firm
- Delivered extensive office fit out providing a modern working environment to satisfy the varied needs of our people; fostering greater in person collaboration, in addition to aiding recruitment and retention of talent
- Ongoing investment in IT infrastructure, enhancing resilience, security and scalability whilst assessing rapidly changing AI landscape to identify how this may best be applied to deliver operational efficiencies across the business
Current Trading and Outlook:
- The Group has made a positive start to 2026 with client demand and recruitment activity remaining positive during Q1 2026
- The Board remains confident that Keystone will continue to deliver strong, sustainable growth and expects results for 2026 to be in in line with current market expectations(2)
(1) Management understand current market expectations for 2025 to be: revenue £97.5m and adjusted PBT £12.5m.
(2) Management understand current market expectations for 2026 to be: revenue £103.4m and adjusted PBT £12.8m.
James Knight, Chief Executive Officer of Keystone, commented:
“I have been extremely pleased with Keystone’s performance over the last financial year. Our quality focused recruitment strategy continues to pay dividends, making Keystone the premier platform law firm and the stand-out choice for the high-calibre talent we wish to attract and retain.
“Our focus on the delivery of excellence across the business continues to underpin our growth aspirations, alongside our commitment to maintaining our progressive dividend policy, which has now seen us return over £45 million to shareholders since our IPO in 2017.”
Chairman's Statement
I am pleased to introduce Keystone Law’s results for the year ended 31 January 2025.
It has been another good year for the business, with sustained client demand and a return to recruitment levels last seen pre pandemic. The Group has delivered a strong set of financial results with revenue growing 11.1% to £97.7m (2024: £87.9m), and adjusted PBT(1) increasing to £12.7m representing an adjusted PBT margin of 13.0% (2024: £11.3m, 12.8%) (PBT of £11.7m (2024: £10.3m) and PBT margin of 12% (2024: 11.7%)). These results reflect the continued strength of the broad-based demand for our services as well as the ongoing growth of the firm, as well as the higher interest rates and strength of our balance sheet in this Period. The cash generative nature of the business model has meant that these profits have converted strongly to cash, demonstrating the quality of earnings that Keystone delivers.
DIVIDEND
At this time, in recognition of the strength of the balance sheet, we are proposing to pay both a final ordinary dividend of 14.0p and a special dividend of 15.0p. This will bring the total value of dividends paid since IPO to just over £45m, or equivalent to just over 145p(2) per share, which is 96% of the adjusted earnings generated by the business over the same period.
Having paid an ordinary interim dividend of 6.2p (2024: 5.8p) this will bring the total ordinary dividend for the year to 20.2p (2024: 18.3p).
OUR PEOPLE AND CULTURE
Our focus on excellence pervades all aspects of the business, creating the positive, supportive and inclusive environment in which our people are able to thrive. This creates an atmosphere in which people flourish, encouraging them to act as ambassadors for the Keystone community. We are, rightly, proud of this culture and invest heavily in it, working tirelessly to continue to build on this strong foundation to ensure its long-term sustainability.
THE CENTRAL OFFICE TEAM
The central office team provides the full range of support and infrastructure that our lawyers need, leaving them free to focus on the work which they enjoy: growing their practices and delivering legal advice to clients. We thank the team for their continued hard work, skill and dedication throughout the year and continue to invest across the business to ensure that we maintain the level of talent necessary to support the growth in volume and sophistication of the work our lawyers advise on.
BOARD AND GOVERNANCE
The Board has continued to operate within the structures and governance requirements of the Quoted Companies Alliance (“QCA”) Code 2018 as set out in the corporate governance section. In November 2023, the QCA issued a revised code which is to apply to financial years starting on or after 1 April 2024. As announced last year, we have been moving to adopt the new requirements of the latest code ahead of that timeline and following last year’s decision to implement annual re-election of all Directors, this year we have chosen to disclose our remuneration policy in the Annual Report and Accounts. This forms part of the Group’s remuneration report which, in early adoption of the 2023 QCA code, will be placed before shareholders at our coming AGM for an advisory vote.
OUTLOOK
I am pleased to say that 2026 has started well with good levels of activity providing us with confidence in the year ahead.
Robin Williams
Non-executive Chairman
30 April 2025
(1) Adjusted PBT is calculated by adding share-based payment costs and amortisation of intangible assets to PBT. Details of these calculations are shown in the Financial Review
(2) Sum of the Ordinary DPS paid for the years ended 31 January 2019 to 31 January 2025, together with the special dividends, DPS paid and proposed to date.
Chief Executive's Review
INTRODUCTION AND HIGHLIGHTS
I am delighted to report that Keystone has had another excellent year. The quality of our lawyers, with their extensive range of knowledge and experience, ensures the delivery of excellent legal advice to our clients, driving growth whilst enhancing the brand and reputation of the business across the legal sector. This growing reputation for first class legal work is the core of our success, it is fundamental to client acquisition and retention and essential in attracting new lawyers to join Keystone, underpinning our long term, sustainable growth.
This year, client demand has remained strong across practice areas and this, together with the impact of the new Principals(1) who have joined us, has delivered strong growth. Revenue has increased by 11.1% to £97.7m (2024: £87.9m), whilst adjusted PBT increased to £12.7m (2024: £11.3m) (PBT of £11.7m (2024: £10.3m) and PBT margin of 12.0% (2024: 11.7%)). Cash flow has, as always, been strong; guaranteed by the nature of our model and ensures that these profits have converted to cash, with cash generated from operations of £11.5m (2024: £10.4m).
Conditions in the recruitment market have remained positive for Keystone and it has been a pleasure to welcome a further 50 excellent new Principals this year (2024: 51).
ASPIRING TO EXCELLENCE UNDERPINS LONG-TERM SUSTAINABLE GROWTH
By aspiring to excellence in everything we do, we continue to drive the business forwards, delivering long-term sustainable growth. This ethos permeates all decisions we make, whether that be in the recruitment of new Principals and the vetting of pod members or the standard of service delivery we expect both from our central office team to our lawyers and from our lawyers to our clients.
It was in this pursuance of excellence that we decided to refit our offices in Chancery Lane this year. The successful transition to remote working by our central office teams enabled us to retain the same office footprint when renewing our leases. However, changes in working habits, both of the central office and our lawyers, meant that the design and layout of these offices no longer lived up to our exceedingly high standards. As such, we decided to take advantage of the lease renewal to rectify this situation. Working with professionals in the sector and taking into consideration the feedback of the relevant stakeholders, we developed a new, modern design, encompassing the varied elements needed to provide a first-class working environment to match the levels of excellence delivered across Keystone. Following the successful delivery of the project, we are now able to fully satisfy the varied needs of our people, whether that be conventional desk space for quiet working, booths for confidential online meetings, areas designed for more interactive group working or relaxed social interaction, as well as highly professional client meeting rooms. I am delighted with the success of the project which I believe further enhances the appeal of Keystone to both new lawyers and central office staff aiding in the recruitment and retention of the talent we need to continue to drive the business forwards.
RECRUITMENT MARKET CONDITIONS REMAIN POSITIVE
Overall, recruitment market conditions have remained positive throughout 2025, with the momentum gained last year persisting through this year, in spite of the political and economic uncertainty mid-year caused by the change in government. Against this backdrop, the activity levels and results delivered have been very pleasing.
During the Period we received 283 qualified applicants (2024: 270), made offers to 95 candidates (2024: 103) with 52 candidates accepting offers (2024: 68), whilst welcoming 50 new joiners (2024: 51). This meant that we have ended the year with 455 Principals (2024: 432). Our Principals have also continued to drive growth by recruiting into their pods and as such we have ended the Period with 108 pod members (2024: 102), which, together with our central office lawyers brings the total number of fee earners to 576 (2024: 549).
The excellent quality of the lawyers now attracted to Keystone is a real testament to the success of our quality-focused recruitment strategy. The success of this strategy is reflected in the number of Keystone lawyers ranked in the leading legal directories, with 207 being recognised in the Legal 500 UK Solicitors 2024 rankings(2) (2023: 172 listed up from 65 in 2019). It is by continuing to focus on the calibre of our lawyers that we guarantee the long-term sustainable growth of the business, generating a virtuous circle as high calibre candidates are attracted to join a firm with lawyers who have a similar market presence to their own. As a result of this we now regularly attract lawyers from the very top of the legal profession with over a quarter of the new Principals joining us this year coming from either the UK office of a large US law firm or a top 25 UK law firm(3).
EXCELLENCE AT THE HEART OF CENTRAL OFFICE TEAM
The central office team has again had a busy and successful year, providing our lawyers with not only the platform they need to excel, but also the supportive and connected environment for them to do so. The community team has onboarded 50 new Principals this year, supporting them as they transition to their new lives at Keystone. Key to the successful integration of new Principals is the investment made in understanding the unique needs of each lawyer and, using this information to identify and connect them with suitable colleagues with whom they will work well to successfully achieve their mutual objectives. Whilst the ongoing support delivered to all our lawyers ensures that during both the highs and, in some cases, the lows of their professional lives at Keystone, they feel fully supported both technically and, quite often, emotionally as well.
On the IT front, we have successfully migrated a number of our systems from the private cloud to the public cloud - Microsoft Azure. This provides enhanced resilience, security and scalability to our infrastructure. The roll out of a SIEM solution at the end of last financial year has ensured further oversight of the IT security risks, of which we remain ever vigilant. The development of AI and its delivery of real-life solutions within the business remains in its infancy, although the pace of evolution in this area is extremely rapid. As such, we continue to assess how this can best be applied across the business to deliver operational efficiencies for our lawyers as well as our central office team, combining the use of third-party products as well as bespoke development with AI agents.
Across all areas of the central office team we continue to aspire to excellence in the delivery of all elements of support which we provide to our lawyers and I have been very satisfied with the successes achieved by the business this year.
LOOKING AHEAD
The business has made a positive start to the new financial year, with strong client demand across all practice areas and positive recruitment activity. We are confident that we will continue to deliver strong, sustainable growth and achieve results that are in line with market expectations for the coming year.
James Knight
Chief Executive
30 April 2025
(1) Principal lawyers are the senior lawyers who own the service company (“Pod”) which contracts with Keystone. The relationship between Keystone and its lawyers is governed by two agreements: a service agreement (which governs the commercial terms and is between the Pod and Keystone) and a compliance agreement (which governs the behaviour of lawyers and is between each lawyer and Keystone). Pods can employ more than one fee earner. A junior lawyer who is employed by a Pod (“Pod Member”) is, to all intents and purposes, a Keystone lawyer and is presented to the outside world in much the same way as a conventional law firm would present a conventionally employed junior lawyer. Junior lawyers are interviewed and fully vetted by the recruitment team in central office to ensure that they are of the requisite quality and calibre. As is the case for the Principal lawyers, these juniors sign a compliance agreement with Keystone and are required to comply with all rules and regulations governing the professional conduct of Keystone’s lawyers.
(2) The Lawyer Survey 2024 ranking by revenue.
(3) The Legal 500 UK Solicitors 2025 rankings is the leading guide to law firms and solicitors in the UK (Source: Legal500.com).
FINANCIAL REVIEW AND STRATEGIC REPORT
KEY PERFORMANCE
INDICATORS (KPIs)
The following KPIs are used by the management to monitor the financial and operational performance of the Group:
- Revenue growth: 11.1% increase (2024: 15.1%)
- Adjusted PBT(3) growth: 12.8% increase (2024: 22.0%)
- Adjusted PBT margin(3): 13.0% (2024: 12.8%)
- PBT growth:13.4% increase (2024: 22.9%)
- PBT margin: 12% (2024: 11.7%)
- Adjusted basic EPS: 30.4p (2024: 27.4p)
- Operating cash conversion: 94.5%(1) (2024: 96.1%)
- Trade receivables days: 34 (2024: 34)
- Qualified new applicants(2): 283 (2024: 270)
- Offers made(2): 95 (2024: 103)
- Offers accepted(2): 52 (2024: 68)
(1) Operating cash conversion is calculated utilising cash generated from operations and dividing it by the PBT before non-cash movements and net interest (£12,178,139 per cash flow statement 2025).
(2) Non-financial KPIs are commented on with the Chief Executive’s review. Recruitment data refers to numbers of potential Principals.
(3) The calculation of adjusted PBT, adjusted PBT margin and adjusted EPS is shown on the next page.
INCOME STATEMENT
I am pleased to report revenue for the year of £97.7m, an increase of 11.1% on the prior year. As a business, we have seen broad-based client demand across practice areas this year which has been further enhanced by the additional income generated from the growth in Principal numbers (ending the Period with 455 Principals and averaging 443.5 (2024: ended with 432 and averaged 415). This has enabled revenue per Principal to grow by 4.0% to £220k (2024: £212k).
GROSS PROFIT
The gross profit of the business has risen this year by 11.6% to £25.5m (2024: £22.8m), with gross profit margins remaining largely stable at 26.1% (2024: 26%).
AMORTISATION, DEPRECIATION AND SHARE-BASED PAYMENTS
Amortisation of intangibles has fallen this year as the underlying asset became fully amortised during the year, whilst the commencement of new leases in Chancery Lane resulted in a slight increase in the amortisation of right-of-use assets. Depreciation also saw a marginal decrease this year. The charge in respect of share-based payments increased from £0.6m to £0.8m.
OTHER ADMINISTRATIVE EXPENSES
Other administrative expenses have increased by 11.8% to £12.9m (2024: £11.6m). Staff costs increased by 15% to £5.4m (2024: £4.7m), whilst wage inflation has eased somewhat from the prior year it still remains a feature of the labour market and, as with all businesses, we need to pay a competitive rate in order to attract and retain talent within the business. This, together with the increase in headcount (69 v 2024: 63), as we have continued to invest in supporting our lawyers to the highest standards has driven the increased costs. Other administrative costs (per note 5) increased by 9.5% to £7.5m (2024: £6.9m), with the largest contributory factors to this being investment in IT as we migrated to the public cloud and fully implemented our SIEM solution to enhance security oversight as well as professional indemnity insurance. The IT costs increased by £0.2m, whilst professional indemnity insurance costs have increased by £0.2m driven predominantly by revenue growth as well as the increase in cover from £50m to £60m.
FINANCE INCOME AND COSTS
Interest rates have remained high for most of this Period, only starting to fall late in the year, and as cash positive business we have benefitted from this with our net finance income rising this year to £1.1m (2024: £0.9m).
PBT, ADJUSTED PBT AND PBT MARGINS
Adjusted PBT is calculated as follows:
2025
£2024
£Profit before tax 11,684,999 10,306,331 Amortisation of
intangible assets248,543 350,884 Share-based payments 780,662 610,644 Adjusted PBT 12,714,204 11,267,859 Net finance income 1,111,203 889,204 Adjusted PBIT 11,603,001 10,378,655 PBT margin 12.0% 11.7% Adjusted PBIT margin 11.9% 11.8% Adjusted PBT margin 13.0% 12.8% The Board consider adjusted PBT to be a better measure of performance than PBT as it excludes costs which are either not a result of the underlying performance of the business (as is the case for the amortisation which arose from the structuring of the 2014 private equity investment in the business) or where the cost represents neither a cash impact to the business, nor is it a reflection of the value received by the recipient (as is the case with share-based payment costs).
The growth in revenue and gross profits have driven a 11.8% increase in adjusted PBIT, representing an 11.9% margin, which is largely in line with the prior year (2024: 11.8%). Profit before tax and adjusted profit before tax have increased by 13.4% and 12.8% respectively, with margins also stepping up as the contribution of finance income more than compensated for the change in adjusted PBIT margin.
TAXATION
This year we have continued to feel the impact of the increase in the standard rate of corporation tax from 19% to 25% in April 2023. As a result of this change, the average rate of corporation tax last year was 24%, whilst this year the full impact of this change has taken effect with the standard rate being 25% for the whole Period. The Group’s effective rate of corporation tax this year was 26.8% (2024: 25.8%). The effective rate of the Group is always higher than the standard rate due to the level of investment we make in providing networking opportunities in social environments for our lawyers, which are disallowable for corporation tax purposes.
EARNINGS PER SHARE
Basic earnings per share increased from 24.4p to 27.1p, with fully diluted EPS being 23.6p (2024: 23.9p). Adjusted basic earnings per share (calculated by making the same adjustments to earnings as have been made in calculating adjusted PBT and divided by the average shares in issue this year) increased to 30.4p (2024: 27.4p).
STATEMENT OF FINANCIAL POSITION
CASH
The strongly cash generative nature of the Group’s business model, benefitting as it does from the payments to lawyers in respect of their fees only being paid once Keystone has been paid for the work delivered, has again been demonstrated by its cashflow profile, with operating cash conversion of 94.5% (2024: 96.1%), generating cash from operations of £11.5m (2024: £10.4m). Capital expenditure of £0.8m (2024: £0.07m) was higher than usual this year, reflecting the costs of the office fit out in Chancery Lane. Corporation tax payments increased to £4.4m (2024: £2.2m) as the Group became qualified as “super large” by HMRC, accelerating the quarterly payments such that all corporation tax is now payable within the year. This being a transition year, we have had to pay not only 100% of the corporation tax relating to 2025 but also the remaining half of the tax relating to the prior year, meaning that there has been a one-off additional outflow of c.£1.5m. Sustained high interest rates throughout this year have ensured that net interest received has increased to £1.1m (2024: £0.9m) and the rent-free periods included in the new leases on Chancery Lane caused the reduction in such payments to £0.2m (2024: £0.6m). As such, cash generated by the business in the year, being net cash flow pre dividend payments, was £7.2m (2024: £8.4m). The Group paid dividends of £5.9m in respect of ordinary dividends (2024: £5.3m ordinary dividend and £3.9m special dividend). This left closing cash of £9.7m (2024: £8.4m) and no debt.
NET ASSETS
The Group’s balance sheet is extremely strong with net assets having increased from £16.9m to £20.5m by virtue of profit for the year of £8.5m, dividends paid of £5.9m and £0.8m movement in reserves to account for the vesting of LTIP awards.
DIVIDEND
In light of the strength of our balance sheet and our confidence in the future, the Board is proposing to pay a final ordinary dividend for the year ended 31 January 2025 of 14.0p per share (2024: 12.5p) as well as a special dividend of 15.0p. This brings the total ordinary dividend for the year to 20.2p per share (2024: 18.3p per share). Subject to approval at the Annual General Meeting, the final dividend will be paid on 8 July 2025 to shareholders on the register at the close of business on 13 June 2025.
The cash value of dividends paid this year was £5.9m.
On behalf of the Board
Ashley Miller
Finance Director
30 April 2025
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 31 January 2025
| Note | 2025 £ | 2024 £ | |
| Revenue | 97,703,149 | 87,930,626 | |
| Cost of sales | (72,229,270) | (65,101,369) | |
| Gross profit | 25,473,879 | 22,829,257 | |
| Trade receivables impairment | 8 | (1,470,788) | (1,471,291) |
| Corresponding reduction in trade payables | 8 | 1,065,268 | 1,088,755 |
| (405,520) | (382,536) | ||
| Depreciation and amortisation | 4 | (823,681) | (897,814) |
| Share-based payments | 4 | (780,662) | (610,644) |
| Other administrative expenses | 4 | (12,940,290) | (11,573,319) |
| Other operating income | 50,070 | 52,183 | |
| Operating profit | 10,573,796 | 9,417,127 | |
| Finance income | 5 | 1,966,246 | 1,575,930 |
| Financing costs | 5 | (855,043) | (686,726) |
| Profit before tax | 11,684,999 | 10,306,331 | |
| Corporation tax | (3,135,226) | (2,656,641) | |
| Profit and total comprehensive income for the year attributable to equity holders of the Parent | 8,549,773 | 7,649,690 | |
| Basic EPS (p) | 7 | 27.1 | 24.4 |
| Diluted EPS (p) | 7 | 26.6 | 23.9 |
The above results were derived from continuing operations.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 January 2025
| Note | 2025 £ | 2024 £ | |
| Assets | |||
| Non-current assets | |||
| Property, plant and equipment | |||
| Owned assets | 772,027 | 120,517 | |
| Right-of-use assets | 1,973,730 | 2,428,005 | |
| Total property, plant and equipment | 2,745,757 | 2,548,522 | |
| Intangible assets | 4,807,411 | 5,055,954 | |
| Investments | 129,350 | 129,350 | |
| 7,682,518 | 7,733,826 | ||
| Current assets | |||
| Trade and other receivables | 8 | 28,325,545 | 25,194,349 |
| Cash and cash equivalents | 9,687,172 | 8,367,072 | |
| 38,012,717 | 33,561,421 | ||
| Total assets | 45,695,235 | 41,295,247 | |
| Equity and liabilities | |||
| Equity | |||
| Share capital | 63,186 | 62,963 | |
| Share premium | 9,920,760 | 9,920,760 | |
| Share-based payments reserve | 1,276,080 | 1,059,531 | |
| Retained earnings | 9,102,454 | 5,896,437 | |
| Equity attributable to equity holders of the Parent | 20,362,480 | 16,939,691 | |
| Non-current liabilities | |||
| Lease liabilities | 1,563,376 | 2,027,866 | |
| Deferred tax liabilities | – | 49,699 | |
| Provisions | 9 | 1,162,235 | 907,945 |
| 2,725,611 | 2,985,510 | ||
| Current liabilities | |||
| Trade and other payables | 10 | 21,985,238 | 19,782,587 |
| Lease liabilities | 594,848 | 344,804 | |
| Corporation tax liability | 27,058 | 1,242,655 | |
| 22,607,144 | 21,370,046 | ||
| Total liabilities | 25,332,755 | 24,355,556 | |
| Total equity and liabilities | 45,695,235 | 41,295,247 |
Ashley Miller
Director
30 April 2025
Keystone Law Group Plc
Registered No. 09038082
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 31 January 2025
| Attributable to equity holders of the Parent | ||||||
| Share capital £ | Share premium £ | Share-based payments reserve £ | Retained earnings £ | Total £ | ||
| At 31 January 2023 | 62,732 | 9,920,760 | 1,028,247 | 6,847,378 | 17,859,117 | |
| Profit for the year and total comprehensive income | – | – | – | 7,649,690 | 7,649,690 | |
| Transactions with owners | ||||||
| Dividends paid in the year | – | – | – | (9,179,991) | (9,179,991) | |
| Share-based payments vesting | 231 | – | (579,360) | 579,360 | 231 | |
| Share-based payment awards | – | – | 610,644 | – | 610,644 | |
| At 31 January 2024 | 62,963 | 9,920,760 | 1,059,531 | 5,896,437 | 16,939,691 | |
| Profit for the year and total comprehensive income | – | – | – | 8,549,773 | 8,549,773 | |
| Transactions with owners | ||||||
| Dividends paid in the year | – | – | – | (5,907,869) | (5,907,869) | |
| Share-based payments vesting | 223 | – | (564,113) | 564,113 | 223 | |
| Share-based payment awards | – | – | 780,662 | – | 780,662 | |
| At 31 January 2025 | 63,186 | 9,920,760 | 1,276,080 | 9,102,454 | 20,362,480 | |
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 January 2025
| Note | 2025 £ | 2024 £ | |
| Cash flows from operating activities | |||
| Profit before tax | 11,684,999 | 10,306,331 | |
| Adjustments | |||
| Depreciation and amortisation | 4 | 823,681 | 897,814 |
| Share-based payments | 4 | 780,662 | 610,644 |
| Revaluation of other assets | – | (70,810) | |
| Finance income | 5 | (1,966,246) | (1,575,930) |
| Financing costs | 5 | 855,043 | 686,726 |
| 12,178,139 | 10,854,775 | ||
| Working capital adjustments | |||
| Increase in trade and other receivables | (3,131,196) | (2,588,441) | |
| Increase in trade and other payables | 2,202,651 | 1,435,229 | |
| Increase in provisions | 254,290 | 724,444 | |
| Cash generated from operations | 11,503,884 | 10,426,007 | |
| Interest paid | (767,002) | (615,726) | |
| Interest portion of lease liability | (88,041) | (71,468) | |
| Corporation taxes paid | (4,404,523) | (2,205,784) | |
| Cash generated from operating activities | 6,244,318 | 7,533,029 | |
| Cash flows from/(used in) investing activities | |||
| Interest received | 1,966,246 | 1,575,930 | |
| Purchases of property, plant and equipment | (772,373) | (68,910) | |
| Investment in other assets | – | (44,812) | |
| Net cash generated by investing activities | 1,193,873 | 1,462,208 | |
| Cash flows from financing activities | |||
| Proceeds from issue of ordinary shares | 223 | 231 | |
| Lease repayments | (210,445) | (600,280) | |
| Dividends paid in year | (5,907,869) | (9,179,991) | |
| Net cash used in financing activities | (6,118,091) | (9,780,040) | |
| Net decrease in cash and cash equivalents | 1,320,100 | (784,803) | |
| Cash at 1 February | 8,367,072 | 9,151,875 | |
| Cash at 31 January | 9,687,172 | 8,367,072 |