Results for the six months ended 31 July 2024

- Strong financial performance continuing to deliver sustainable growth and progressive dividends
- Recruitment activity remained buoyant with Keystone adding 30 new Principals across H1 2025
- Keystone now expects revenue and adjusted PBT slightly ahead of current expectations for FY 2025

Keystone, the tech-enabled challenger law firm, is pleased to announce its results for the six months ended 31 July 2024 ("H1 2025" or the “Period”).

Financial Highlights:

• Revenue growth of 8.3% to £46.5 million (H1 2024: £42.9 million*)
• Adjusted PBT increased by 7.2% to £6.1 million (H1 2024: £5.7 million)
• Adjusted PBT margin stable at 13.1% (H1 2024: 13.3%)
• Adjusted basic EPS of 14.6p (H1 2024: 13.6p)
• Cash generated from operations of £6.2 million (H1 2024: £6.3 million) with operating cash conversion of 106% (H1 2024: 113.3%); the Group remains debt-free and with net cash of £8.3m
• Declared interim ordinary dividend of 6.2p per share (H1 2024: 5.8p)

*restated as per restatement in recent annual report and accounts

 Operational Highlights:

• Strong performance across all recruitment KPI’s as the legal recruitment market remained positive:
• 153 high-calibre new applicants in the Period (H1 2024: 144)
• 56 offers made (H1 2024: 42) and 31 offers accepted (H1 2024: 25)
• 30 new Principals joined in the Period, increasing the number of Principals to 442 (31 January 2024: 432).
• Total fee earners increased to 557 (31 January 2024: 549)
• Current refurbishment of the London office which, when complete, will provide greater workplace flexibility and enhanced lawyer experience, remains on track
• The calibre of candidates joining the Group demonstrates the mainstream appeal of the model and emphasises Keystone’s position as market leader within our sub-sector

Current Trading and Outlook:

• In light of the strong first half performance and the positive start to the second half of the year, the Board is confident that Keystone will deliver both revenue and adjusted PBT slightly ahead of current market expectations.

James Knight, Chief Executive Officer of Keystone, commented:

“Keystone’s position in the market continues to strengthen and I am delighted that our ongoing operational excellence has been reflected in our financial performance. The business has delivered well across all our operational KPIs, reflecting the ongoing growth in demand for the benefits that Keystone provides.”

Analyst Briefing

A meeting for analysts will be held virtually at 9.30am this morning. Analysts wishing to attend this event can register via email at keystonelaw@vigoconsulting.com.

Retail Investor Presentation

Keystone's management team will provide a separate presentation and Q&A for investors at 1.00pm on Monday 16 September 2024.

The presentation will be hosted on the Investor Meet Company digital platform, where questions can be submitted pre-event up until 9.00am on the day before the meeting, or at any time during the live presentation.

To sign up to IMC, please visit: www.investormeetcompany.com/keystone-law-group-plc/register-investor

 

For further information please contact:

Keystone Law Group plc

James Knight, Chief Executive Officer

Ashley Miller, Finance Director

www.keystonelaw.com 

 +44 (0) 20 3319 3700

 

Panmure Liberum Limited (Nominated Adviser and Joint Broker)

Atholl Tweedie (Corporate Finance)

Rupert Dearden (Corporate Broking)

www.panmureliberum.com

+44 (0) 20 7886 2500

 

Investec Bank plc (Joint Broker)

Carlton Nelson

James Rudd

www.investec.co.uk

+44 (0) 20 7597 5970

 

Vigo Consulting (Financial Public Relations)

Jeremy Garcia / Fiona Hetherington

keystonelaw@vigoconsulting.com

+44 (0)207 390 0233

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

 

Notes to editors

Keystone (AIM: KEYS), is an award-winning, UK Top 100, law firm, providing conventional legal services in a £10bn addressable market through its scalable and unique model, with three defining characteristics:

• Lawyers have freedom, flexibility and autonomy, and are paid up to 75% of what they bill.
• Lawyers determine how, when and where they work, in contrast to the conventional law firm model.
• Lawyers are provided full infrastructure and support via its central office team, bespoke user-friendly IT platform, an extensive network of high-calibre colleagues and a busy programme of networking and social events.

Keystone is a full-service law firm, with 20 service areas and more than 50 industry sectors delivered by almost 450 high-calibre self-employed Principal lawyers who work from their own offices.

In November 2020, Keystone was named Law Firm of the Year by The Lawyer, the first time a 'new' law firm has won the award.

More information about Keystone can be found at www.keystonelaw.co.uk.