In a bid to enhance its market position, AIM-listed legal firm Keystone Law has been making significant strides in upgrading the calibre of its lawyer recruits. This strategic move has been a crucial driver for the firm’s recent financial performance.
During the past six months leading up to 31 July, Keystone Law has reported a revenue increase of 8.3%, totalling £47 million, compared to the previous year. Concurrently, the firm’s adjusted profit before tax also rose by 7.2%, reaching £6 million. Despite a slight dip in the adjusted profit margin from 13.3% to 13.1%, the board remains optimistic, increasing the dividend payout to 6.2p per share, a 0.4p rise from 2023.
Keystone Law’s recruitment metrics have shown a marked improvement, with 153 applications received and 56 offers extended, of which 31 were accepted. The firm welcomed 30 new principals during this period, although there were 20 departures. Historically, the number of principals has seen an annual increase of approximately 6%. As of 31 July, the firm boasts 442 principals and an additional 115 fee-earners who support them in dedicated pods.
Chief Finance Officer Ashley Miller emphasised the importance of recruiting high-calibre lawyers who bring valuable clients, contributing significantly to the firm’s growth. Noteworthy appointments include Mario Jacovides and Linos Choo, both of whom possess extensive expertise from leading law firms.
James Knight, Keystone’s Chief Executive, articulated the firm’s rigorous selective process, stating: “We turn away those who may be considered good lawyers with good client followings but do not quite meet the criteria of where Keystone are now.” He further explained that the firm’s growth strategy prioritises empowering lawyers to develop their practices over acquiring other firms.
Knight highlighted Keystone’s overall strong performance, achieving key business indicators, fostering sustainable growth, and increasing profits. He remains confident that despite economic challenges and political uncertainties, the firm is well-positioned for ongoing success. Keystone’s market confidence is mirrored in its share performance, which closed at 670p, marking a 1.5% increase. The shares have seen significant growth from 389p last July and achieved a record high of 830p in January 2022.
Overall, Keystone Law’s emphasis on quality recruitment and strategic growth has reinforced its position as a formidable player in the legal sector, with promising prospects for continued success.
