18 April 2024

Full year results for the year ended 31 January 2024

- Strong revenue and profit growth supports the Group’s progressive dividend policy
- Recruitment conditions continued to improve during FY 2024, with Keystone adding 51 new Principals

Keystone, the network and tech-enabled challenger law firm, is pleased to announce its full year results for the year ended 31 January 2024 ("2024").

Financial Highlights:

  • Revenue growth of 15.1% to £87.9 million (2023: £76.4 million*)
  • Revenue per Principal up 10% to £212k (2023: £193k)
  • Adjusted PBT of £11.3 million (2023: £9.2 million) representing an adjusted PBT margin of 12.8% (2023: 12.1%)
  • Adjusted basic EPS of 27.4p (2023: 24.2p)
  • Cash generated from operations up 11.8% to £10.4 million (2023: £9.3 million) with operating cash conversion of 96.1% (2023: 96.5%); the Group remains debt-free
  • Paid interim ordinary dividend of 5.8p per share and special dividend of 12.5p per share
  • Proposed final ordinary dividend of 12.5p per share (2023: 11.2p), bringing the total ordinary dividend per share for the year to 18.3p (2023: 16.1p)

*restated

Operational Highlights:

  • The Group experienced sustained client demand across practice areas in 2024
  • 2024 has seen a positive shift in the recruitment market, with the “war for talent” that had characterised the previous couple of years having subsided:
    • Received 270 high-calibre new applicants in the period (2023: 232)
    • 51 new Principals joined in the year, increasing the number of Principals to 432 (2023: 398), with the vast majority of new recruits coming from top 100 law firms
    • Recruitment of Pod Members continues to grow with the Group ending the period with 102 (2023: 95)
  • Total fee earners increased to 549 (2023: 507)
  • The Group continued to deliver opportunities for professional networking and community building across the year, underpinning Keystone’s differentiated corporate culture

Current Trading and Outlook:

  • The Group has made a positive start to the new year with ongoing client demand across practice areas
  • We continue to attract a good flow of high-quality candidates
  • The Board remains confident that this will be another successful year, delivering results in line with current market expectations


James Knight, Chief Executive Officer of Keystone, commented:

“It has been another extremely successful year for Keystone and it has been very gratifying to see a return to recruitment levels last experienced pre-pandemic.

The strength of our operational and financial performance across 2024 has enabled the Group to maintain its longstanding progressive dividend policy, returning over £30m to shareholders since listing on AIM in 2017. 

We enter the new financial year confident in the ability of the business to continue to deliver high quality earnings and sustainable growth in the year ahead.”

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 [email protected].

Retail Investor Presentation

Keystone's management team will provide a separate presentation and Q&A for investors at 1.00pm on Monday 22 April 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 Gordon (UK) Limited (Nominated Adviser and Joint Broker)

Dominic Morley (Corporate Finance)

Rupert Dearden (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

 

Vigo Consulting (Financial Public Relations)

Jeremy Garcia / Fiona Hetherington / Aisling Fitzgerald

[email protected]

+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 over 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.