Keystone Law reports solid first-half growth

12th Sep 2024 11:57

(Sharecast News) - Keystone Law Group reported a strong set of results for the six months ended 31 July on Thursday, highlighting continued growth and positive recruitment momentum.

The AIM-traded firm said revenue increased 8.3% to £46.5m, up from £42.9m in the same period last year.

Adjusted profit before tax also grew, by 7.2% to £6.1m, while its adjusted profit before tax margin remained stable at 13.1%.

Earnings per share increased to 14.6p, compared to 13.6p in the first half of the 2024 financial year.

The company, which operates as a tech-enabled challenger in the legal sector, generated £6.2m in cash from operations and maintained a strong financial position with £8.3m in net cash and no debt.

Its board declared an interim dividend of 6.2p per share, up from 5.8p a year ago.

Keystone also achieved significant recruitment success during the period, adding 30 new principals to its team, bringing the total to 442, up from 432 at the end of January.

The company received 153 high-calibre applications, resulting in 56 offers made and 31 accepted.

It said the strong recruitment activity increased the total number of fee earners to 557.

Keystone attributes the growth to its attractive business model, which continued to appeal to top talent in the legal field.

The company said it was currently refurbishing its London office to provide greater workplace flexibility and enhance the experience for its lawyers, with the project remaining on schedule.

Looking ahead, Keystone said it expected to exceed its initial revenue and adjusted profit before tax projections for the 2025 financial year, driven by a strong first half and a positive start to the second half of the year.

The board said it was confident in the company's ability to deliver sustainable growth and meet its strategic objectives.

"Keystone's position in the market continues to strengthen and I am delighted that our ongoing operational excellence has been reflected in our financial performance," said chief executive officer James Knight.

"The business has delivered well across all our operational KPIs, reflecting the ongoing growth in demand for the benefits that Keystone provides."

At 1137 BST, shares in Keystone Law Group were up 1.52% at 670p.

Reporting by Josh White for Sharecast.com.