Keystone Law ends year in line with upgraded expectations
By Josh White
Date: Thursday 01 May 2025
(Sharecast News) - Keystone Law reported full-year results in line with its recently-upgraded expectations on Thursday, delivering revenue growth of 11.1% to £97.7m for the year ended 31 January.
The AIM-traded firm said adjusted profit before tax rose 12.8% to £12.7m, with a margin of 13%, as the firm continued to benefit from robust client demand and favourable recruitment conditions.
Revenue per principal increased by 4% to £220,000, and cash generated from operations rose 10.3% to £11.5m.
The group said it maintained a strong balance sheet with net cash of £9.7m.
Keystone proposed a final ordinary dividend of 14p per share, bringing the total ordinary dividend to 20.2p for the year.
In addition, the board declared a special dividend of 15p, citing ongoing confidence in the outlook and a solid financial position.
The platform-based legal firm added 50 new principals during the year, taking the total to 455.
Organic growth also continued in pods and fee earner numbers, with total pod members reaching 108 and total fee earners growing to 576.
Over a quarter of new joiners came from either a large US firm's UK office or a top 25 UK law firm, which the board said reinforced Keystone's positioning as a leading destination for high-quality legal talent.
Operational developments included the completion of an office fit-out aimed at enhancing collaboration and talent retention, as well as continued investment in IT infrastructure to improve scalability and security.
The firm said it was also actively exploring the application of AI to improve operational efficiency.
Keystone said trading in the early part of the 2026 financial year had been positive, with ongoing client demand and strong recruitment momentum.
The board said it expected full-year results for 2026 to be in line with current market expectations.
"I have been extremely pleased with Keystone's performance over the last financial year," said chief executive officer James Knight.
"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."
At 1147 BST, shares in Keystone Law Group were up 3.55% at 530.2p.
Reporting by Josh White for Sharecast.com.
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