Keystone Law Group set to outperform market expectations after profit increase

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Fund managers are becoming bullish on real asset returns
Fund managers are becoming bullish on real asset returns

Keystone Law Group said it expects to deliver results “slightly ahead” of market expectations as the firm reported an increase in revenue and pre-tax profit.

The AIM-listed law firm, which operates a self-employed model, reported that its pre-tax profit rose to £5.5m in the six months to July 2024, up from £5.3m in the same period last year.

This came on the back of robust revenue growth, which rose 8.3 per cent to £46.5m.

On the back of its results, the firm said it expects to deliver revenue and adjusted profit “slightly ahead” of current market expectations.

“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,” James Knight, chief executive said.

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

Keystone declared a dividend of 6.2p per share, up from 5.8p last year.

The firm also reported “bouyant” recruitment activity, with 153 “high-calibre” lawyers making applications in the period.

Keystone said 30 new ‘principals’ – the equivalent of a partner – had joined the business, increasing the total number to 442.

“The calibre of candidates joining the group demonstrates the mainstream appeal of the model and emphasises Keystone’s position as market leader within our sub-sector,” it said.

Although the company’s headquarters are in London, it has meeting rooms in Bristol, Leeds, Manchester and Newcastle meaning lawyers can work from wherever they want. This can make it an attractive option when other law firms are demanding that staff return to the office.

“Although the UK economy continues to have its challenges and the recent change in government has introduced a new element of uncertainty to the future, we remain confident that Keystone will continue to build on this performance to deliver ongoing sustainable growth,” it said.