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."

 

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 a highly scalable, premier tech-enabled platform law firm. Ranked within the UK Top 100 law firms, providing conventional legal services in a £12bn addressable market through its differentiated platform model which has 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, and network of colleagues and events.

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

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