Keystone Law Group (KEYS) H2 2026 earnings summary

Executive summary

• Achieved record results for the year ended January 2026, with revenue up 17.9% year-over-year, driven by strong recruitment of high-calibre lawyers and robust client demand.

• Operates a platform law firm model, emphasizing flexibility, autonomy, and technology-driven efficiencies for lawyers.

• Continued to scale post-IPO, maintaining a progressive dividend policy and strong cash generation.

• Record number of fee earners joined, supporting sustainable expansion and operational resilience.

Financial highlights

• Revenue increased 17.9% year-over-year to £115.2 million.

• Adjusted PBT rose 20.6% to £15.3 million (margin 13.3%), and adjusted PBIT up 11.4% to £12.9 million.

• Operating cash conversion was 98.9%, with £9.7 million cash in the bank and no debt.

• Adjusted EPS was £0.37; total ordinary DPS for the year was £0.247.

• Gross profit margin declined to 25.4-25.5% due to mix shift; staff costs rose 17% with headcount up from 69 to 81.

Outlook and guidance

• Confident outlook for the coming year, with strong recruitment pipeline and continued client demand.

• Trading conditions expected to remain similar, supporting delivery of results in line with market expectations.

• Margins expected to broadly continue at current levels; interest income may decline as rates fall.

• Positive start to the new financial year with trading conditions largely unchanged except for the interest environment.

• Expect adjusted PBT to exceed pre-announcement market expectations.