Final Results

Keystone Law (AIM: KEYS), the fast growing, UK Top 100, challenger law firm, today announces its maiden set of final results for the year ended 31 January 2018.

Financial Highlights

  • Strong Revenue increase of 23.6% at £31.6 million (FY2017: £25.6 million)
  • Underlying EBITDA1 of £3.27 million (FY2017: £2.29 million) representing growth of 42.7%
  • Underlying EBITDA1 margin rising to 10.3% from 9% in FY2017
  • Underlying PBTA2 up by 63% to £2.89 million (FY2017: £1.77 million)
  • Basic EPS of 6.0 pence (on 26.3 million shares) is up from 3.5 pence (on 25 million shares)
  • Underlying EPS calculated on closing shares of 31 million would have been 8.1 pence
  • Underlying operating cash3 conversion of 86% delivered due to strongly cash generative business model
  • Proposed 0.84 pence dividend; methodology as indicated on IPO
  • Maiden set of final results reported comfortably ahead of market expectations

1 Underlying EBITDA for 2018 is calculated by adding flotation costs back to EBITDA. For 2017 one off costs arising from the relocation of the central office have been added back to EBITDA. Details of these calculations are shown in the financial review.
2 PBTA refers to profit before tax and amortisation
3 Underlying operating cash flow has been adjusted in 2018 to remove the impact of £221,000 flotation costs which remain unpaid at 31 January 2018. Underlying cash conversion is calculated by dividing the underlying operating cash flow by the underlying EBITDA.

Business highlights

  • Successful admission to AIM on 27 November 2017, raising gross proceeds of £15.0 million in an oversubscribed Placing (£10 million for Company, £5 million for existing shareholders)
  • Number of fee earners rising from 228 to 266 and applications made in the period increasing 24% year on year
  • Organic growth enabled by growing reputation as a leading, quality mid-market law firm
  • Continued investment in infrastructure and recruitment capabilities to drive further quality-centric organic growth
  • Breaking into The Lawyer magazine’s list of the Top 100 UK law firms based on revenue and into Legal Week magazine’s Best Legal Advisers Report as the only firm to be ranked in the top 5 in all categories
  • Group well positioned, with clear growth strategy, to exploit substantial UK legal mid-market opportunity

James Knight, Chief Executive Officer of Keystone Law, commented: “I am pleased to report that the Group has delivered a positive maiden set of final results, with strong performance driving revenue and EBITDA growth. Furthermore, our business model has led to impressive cash conversion within the business.

“I am delighted to have successfully completed our recent IPO and strongly believe that Keystone is well-positioned to take advantage of the significant market opportunity in the UK legal services market, which we believe is ripe for disruption.

“The ability of our clear strategy to deliver organic growth has been demonstrated by the rising number of fee earners joining the business, as our distinctive platform model proves increasingly attractive to quality lawyers and their valuable clients. As Keystone’s first mover advantage enables further expansion, we look forward to delivering sustainable organic growth to our shareholders as we embark upon our journey as a publicly listed company.”



For further information:

Keystone Law Group plc
James Knight, Chief Executive Officer Tel: +44 (0) 20 3319 3700
Ashley Miller, Finance Director
Panmure Gordon (UK) Limited
(Nominated Adviser and Broker)
Andrew Potts / Peter Steel / Dominic Morley (Corporate Finance) Tel: +44 (0) 20 7886 2500
Erik Anderson (Corporate Broking)
Media enquiries:
Henry Harrison-Topham / Steph Watson Tel: +44 (0) 20 7466 5000
[email protected]


Notes to editors

Keystone Law is a UK Top 100, fast growing, profitable and cash generative challenger law firm. Established in 2002, Keystone is one of the first platform models disrupting the traditional law firms operating within the legal services mid-market. Keystone’s model permits rapid scalability, enabling the Group to increase the number of revenue generating lawyers more quickly than the traditional model.

As a full service law firm, Keystone delivers conventional legal services across more than 20 service areas and over 50 industry sectors to a client base comprising predominantly of SMEs and private individuals. These services are delivered by over 250 experienced self-employed lawyers who work from their own offices; with no fixed remuneration their fees are calculated with direct reference to the income they generate for the Group. The lawyers are fully supported by the Group’s central office team of approximately 40 employees, and are therefore able to focus entirely on business development and the delivery of legal work.

With the head office located in the heart of London’s legal district on Chancery Lane, the Group uses its bespoke proprietary software platform to enable Keystone’s lawyers to interact with the central office team and each other in an easy and efficient manner, whilst extensive networking and social events engender a strong sense of belonging to the Keystone family. The platform also drives interaction, co-operation and a strong corporate culture across the business.

Keystone joined the AIM market of the London Stock Exchange in November 2017, raising £15 million, under the ticker KEYS. More information can be found at:

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain. The person responsible for arranging the release of this announcement on behalf of the Group is Ashley Miller, Finance Director.