Keystone Law today reported a 3% drop in profit before tax for the first half of the financial year despite a 9% increase in revenue, though the listed remote working firm said it is ‘well-placed to deliver another strong performance’ in its full-year results.
Revenue in the six months to 31 July 2022 was £36.8m and profit before tax was £4.1m after more than doubling to £4.3m in the first half of last year, when Keystone said ‘profitability was enhanced by approximately £0.2m of cost savings as Covid restrictions prevented face-to-face networking events’.
Basic earnings per share were down slightly from 10.8p to 10.5p, while the firm said cash generated from operations was up by 17% to £4.9m and that the group remains debt free.
Keystone announced an interim dividend of 5.2p per share, up from 4.5p in the first half of the last financial year, which will be payable to shareholders next month. It said it is ‘well-placed to deliver another strong performance at full year which we expect to be comfortably in line with current market expectations’.
The firm also said that it has managed to attract good quality candidates ‘despite a challenging recruitment environment’, while revenue per principal was £93,000 – up from £89,000 in the first half of last year.
Chief executive James Knight said: ‘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.’
Shares in Keystone Law Group plc fell by nearly 5% to 510p in early trading from yesterday’s close of 535p, before rising to 525p by around 9am.
This article is now closed for comment.
1 Reader's comment