Top-100 firm Keystone Law has announced strongly growing profits and revenue in its first full year since listing on the junior market of the London Stock Exchange.
In the year ending 31 January 2019 the firm announced adjusted pre-tax profits of £5.1m, up 56.8% on the previous year, on revenues up 35.1% to £42.7m. It proposed a dividend of 6.5p, bringing its full-year dividend to 9p.
The self-styled ‘challenger’ law firm operates on a chambers model, with more than 270 self-employed lawyers working from their own offices and paid according to the revenue they generate. It listed on the AIM market of the London Stock Exchange in November 2017.
Commenting on today's results, James Knight, chief executive, said: 'The benefits offered by the Keystone business model, as well as the increasing brand recognition within the legal profession, continue to make Keystone a highly attractive proposition for high calibre lawyers seeking a different way to develop their practice. As such I strongly believe that Keystone is well positioned to take advantage of the significant market opportunity in the UK mid-market legal services market, which we believe is ripe for disruption.'
The results statement reveals that the gross profit margin of the business slipped by half a percentage point, to 27.1% and that overhead costs increased by 21% in the year. 'This has been driven in part by the full year impact of costs associated with being a public company (£0.2m impact this year),' the announcement stated.
Shares in Keystone Law Group slipped 0.4% to 507p.