Annual Report & Accounts 2026
12
KEY PERFORMANCE INDICATORS (KPIS)
1
Operating cash conversion is calculated utilising cash generated from operations and dividing it by the PBT before non-cash movements and net interest (2026: £13,621,568 per cash flow statement).
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.
The following KPIs are used by the management to monitor the financial and operational performance of the Group:
• Revenue growth: 17.9% increase (2026: 11.1%)
• Adjusted PBT3 growth: 20.6% increase (2026: 12.8%)
• Adjusted PBT margin3: 13.3% (2026: 13.0%)
• PBT growth: 25.6% increase (2026: 13.4%)
• PBT margin: 12.7% (2026: 12.0%)
• Adjusted basic EPS3: 37.0p (2026: 30.4p)
• Operating cash conversion: 98.9%1 (2026: 94.5%)
• Trade receivables days: 35 (2026: 34)
• Qualified new applicants2: 294 (2026: 283)
• Offers made2: 96 (2026: 95)
• Offers accepted2: 68 (2026: 52)
REVENUE
I am delighted to report that revenue increased this year by 17.9% to £115.2m. This strong revenue growth has been driven by broad based client demand and continued strength in recruitment, both of Principals and pod members. In terms of Principal numbers, we end the period with 491 Principals and averaged 473 (2026: ended with 455 and averaged 443.5), whilst a net increase of 36 pod members means that total fee earners has increased by 13.5% to 654 (2026: 576). These factors have facilitated the continued growth in revenue per Principal, which has increased this year by 10.5% to £243k (2026: £220k). GROSS PROFIT
The increased revenue this year generated growth in gross profit of 15.2% to £29.3m (2026: £25.5m). The strong revenue growth was driven predominantly by the Principals and their Pods, such that the share of gross profit generated by those lawyers on whom we enjoy enhanced gross margins4 has fallen. Accordingly, the gross margin of 25.5% was lower than last year (2026: 26.1%), this reduction in margin flows through to PBT. DEPRECIATION, AMORTISATION, SHARE-BASED PAYMENTS AND GAINS ON INVESTMENTS
Depreciation has increased this year by £0.1m as the 2024 fit out costs of our Chancery Lane offices only started being depreciated in November 2026. There was no amortisation charge for intangibles this year as the underlying asset on which this had been charged became fully amortised during the prior year (2026: £0.25m). The charge in respect of share-based payments increased from £0.8m to £0.85m, whilst the carrying value of the investment held by the business in Keypoint Law PTY Limited was revalued resulting in an unrealised gain of £0.2m. FINANCIAL REVIEW AND STRATEGIC REPORT
ASHLEY MILLER
Finance Director
KEY PERFORMANCE INDICATORS (KPIS)
1
Operating cash conversion is calculated utilising cash generated from operations and dividing it by the PBT before non-cash movements and net interest (2026: £13,621,568 per cash flow statement).
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.
The following KPIs are used by the management to monitor the financial and operational performance of the Group:
• Revenue growth: 17.9% increase (2026: 11.1%)
• Adjusted PBT3 growth: 20.6% increase (2026: 12.8%)
• Adjusted PBT margin3: 13.3% (2026: 13.0%)
• PBT growth: 25.6% increase (2026: 13.4%)
• PBT margin: 12.7% (2026: 12.0%)
• Adjusted basic EPS3: 37.0p (2026: 30.4p)
• Operating cash conversion: 98.9%1 (2026: 94.5%)
• Trade receivables days: 35 (2026: 34)
• Qualified new applicants2: 294 (2026: 283)
• Offers made2: 96 (2026: 95)
• Offers accepted2: 68 (2026: 52)
REVENUE
I am delighted to report that revenue increased this year by 17.9% to £115.2m. This strong revenue growth has been driven by broad based client demand and continued strength in recruitment, both of Principals and pod members. In terms of Principal numbers, we end the period with 491 Principals and averaged 473 (2026: ended with 455 and averaged 443.5), whilst a net increase of 36 pod members means that total fee earners has increased by 13.5% to 654 (2026: 576). These factors have facilitated the continued growth in revenue per Principal, which has increased this year by 10.5% to £243k (2026: £220k). GROSS PROFIT
The increased revenue this year generated growth in gross profit of 15.2% to £29.3m (2026: £25.5m). The strong revenue growth was driven predominantly by the Principals and their Pods, such that the share of gross profit generated by those lawyers on whom we enjoy enhanced gross margins4 has fallen. Accordingly, the gross margin of 25.5% was lower than last year (2026: 26.1%), this reduction in margin flows through to PBT. DEPRECIATION, AMORTISATION, SHARE-BASED PAYMENTS AND GAINS ON INVESTMENTS
Depreciation has increased this year by £0.1m as the 2024 fit out costs of our Chancery Lane offices only started being depreciated in November 2026. There was no amortisation charge for intangibles this year as the underlying asset on which this had been charged became fully amortised during the prior year (2026: £0.25m). The charge in respect of share-based payments increased from £0.8m to £0.85m, whilst the carrying value of the investment held by the business in Keypoint Law PTY Limited was revalued resulting in an unrealised gain of £0.2m. FINANCIAL REVIEW AND STRATEGIC REPORT
ASHLEY MILLER
Finance Director