Keystone: Higher rates and new staff to help AIM-listed law firm outperform expectations
Keystone Law Group said it will perform ahead of market expectations in 2024 thanks to the impact of higher interest rates and new joiners.
In a trading update released this morning, the AIM-listed law firm, which operates a self-employed model, said it has seen a “strong performance” across the 2024 financial year.
“Sustained client demand, as well as the impact of new joiners, has generated a better than anticipated revenue outturn,” the firm said.
Combined with the positive impact of higher interest rates, Keystone now expects to deliver revenue and adjusted pretax profit “slightly ahead” of market expectations.
Markets consensus is for the firm to notch a revenue of £84.8m and an adjusted pretax profit of £10.9m.
The law firm said it had “continued to capitalise” on favourable market conditions, recruiting 51 new principals during 2024. It ended the year with 432 principals and 549 fee earners.
Its shares jumped over seven per cent following the news.
“I am delighted to report that Keystone delivered a strong trading performance across the year, further leveraging our unique operating model and market position within the legal profession,” James Knight, chief executive at Keystone said.
“Our ongoing financial and operational momentum has been accelerated by a more fertile recruitment environment following the challenges of the last couple of years, and we look forward to building on this performance in the year ahead,” he continued.
Shares in Keystone are up over thirty per cent since last summer. Results for the 2024 financial year will be released on 18 April.