15 September 2022

Half year results for the period ending 31 July 2022

Continued strong financial performance driven by high client demand

Keystone Law Group plc (AIM: KEYS), the fast growing, UK Top 100, challenger law firm, today announces its half year results for the year ended 31 July 2022 (‘H1-2023).

Financial Highlights:

  • Revenue of £36.8m (up 9.3% on H1-2022)
  • PBT of £4.1m (down 2.5% on H1-2022(1))
  • Adjusted PBT of £4.5m (down 1% on H1-2022(1))
  • Basic EPS of 10.5p (H1-2022: 10.8p)
  • Adjusted basic EPS of 11.8p (H1-2022: 11.9p)
  • Strong operating cash conversion of 101%, with cash generated from operations of £4.9m (up 16.5% on H1-2022); remain debt free
  • Interim dividend of 5.2p per share (H1-2022: 4.5p)

(1)     Profitability in H1-2022 was enhanced by approximately £0.2m of cost savings as Covid restrictions prevented face to face networking events.  This year a full programme of face to face events has been delivered. 

Strategic Highlights:

  • 22 Principals have joined despite it being one of the most challenging recruitment markets in over a decade and we have increased the overall number of Principals to 399 (31 January 2022: 394).
  • Delivered the full programme of face-to-face networking and social events which form part of the Keystone DNA, underpinning the collegiate culture and providing lawyers with the opportunity to enhance their internal networks.
  • Continued to invest into our central office team and IT platforms, ensuring we provide our lawyers with a first-class service.

Current trading and outlook:

  • Client demand has remained strong.
  • We continue to attract good quality candidates despite a challenging recruitment environment.
  • Well placed to deliver another strong performance at Full Year which we expect to be comfortably in line with current market expectations.

James Knight, Chief Executive Officer of Keystone Law, commented:

“Keystone has delivered another very good financial performance for the first half of the year, with our lawyers continuing to work hard to deliver quality service to clients in response to high demand, driving strong revenue growth and good levels of profitability.

Our unique business model, which offers lawyers genuine flexibility and autonomy alongside the support of a high quality central office and technology platform, enables us to service these high levels of demand while acting as a key attraction to lawyers seeking new opportunities and ways of working.

We maintain a robust cash position with strong cash generation, and are pleased to declare an interim dividend of 5.2p per share.”

 


For further information please contact:

 

Keystone Law Group plc
James Knight, Chief Executive Officer
Ashley Miller, Finance Director
wwww.keystonelaw.com
+44 (0) 20 3319 3700

 

Panmure Gordon (UK) Limited (Nominated Adviser and Joint Broker)
Dominic Morley (Corporate Finance)
Erik Anderson (Corporate Broking)
www.panmure.com
+44 (0) 20 7886 2500

 

Investec Bank plc (Joint Broker)
Carlton Nelson
James Rudd
www.investec.co.uk
+44 (0) 20 7597 5970

 

Media enquiries
FTI Consulting
Laura Ewart
[email protected]
+44 (0)7711 387 085

 

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”).

Analyst Briefing

A meeting for analysts will be held virtually at 9.30am today, 15 September 2022. Analysts wishing to attend this event can register via email at [email protected]. Keystone's Half Year results announcement will also be available today on the Group's website at www.keystonelaw.com.

Notes to editors

Keystone is an award-winning law firm, providing conventional legal services to SMEs and high net worth individuals in a £9bn addressable market.

Keystone has a scalable and unique model, with three defining characteristics:

  • Our lawyers have freedom, flexibility and autonomy, and are paid up to 75% of what they bill.
  • Our lawyers determine how, when and where they work, in contrast to the conventional law firm model.
  • We offer lawyers 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 nearly 400 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.