Keystone Law, an AIM-listed firm, is enhancing its recruitment quality, contributing to increased turnover and profit.
- The firm’s revenue rose by 8.3%, reaching £47m for the six months ending 31 July, while profits before tax grew by 7.2% to £6m.
- Despite a minor decline in profit margin, the board declared a higher dividend of 6.2p per share.
- Keystone’s recruitment process saw an increase, with 153 applicants and 56 offers, leading to 31 new joiners.
- Key executive hires include top industry professionals, driving the firm’s strategic growth.
In a bid to strengthen its market position, Keystone Law, the AIM-listed law firm, has reported a notable improvement in the calibre of lawyers it recruits, which in turn is propelling its financial performance. This strategic shift is evident as the firm’s revenue surged by 8.3% to reach £47m for the six months leading up to 31 July compared to the prior year. Adjusted profit before tax also saw a significant rise, increasing by 7.2% to £6m, underscoring the firm’s robust financial health.
The profit margin experienced a slight dip from 13.3% to 13.1%; nonetheless, this did not deter the board from raising the dividend to 6.2p per share, marking a 0.4p increase from the previous year. This decision reflects the firm’s confidence in its sustained growth trajectory amidst an evolving economic landscape.
Keystone’s recruitment strategy entails a rigorous vetting process, having received 153 applications and extending 56 offers, 31 of which were accepted. Over the same period, 30 principal lawyers joined the firm, although it also saw 20 departures. This net gain aligns with historical trends where principal numbers typically increase by approximately 6% annually. As of 31 July, the firm comprised 442 principals supported by 115 fee-earners working in specialised groups referred to as ‘pods’.
Ashley Miller, the Chief Finance Officer, highlighted the strategic importance of hiring high-quality lawyers, which has been instrumental in Keystone’s upward trajectory in recruitment standards. The inclusion of industry veterans such as Mario Jacovides, who was formerly the global head of Allen & Overy’s structured and asset finance group, and Linos Choo, the prior head of marine in London at DLA Piper, exemplifies this strategy.
Chief Executive James Knight reinforced this direction by stating the firm’s selective approach, noting that they are focused on integrating only those who align with Keystone’s strategic goals. Growth is being pursued through the development of individual practices rather than through acquisitions, enabling the firm to nurture sustainable growth and improve profits. The firm demonstrated strong performance metrics, thereby fortifying its standing as a leader within the market.
Despite the existing challenges posed by the UK’s economic climate and political changes, Keystone remains optimistic about its ability to sustain growth and exceed market expectations. This optimism was reflected in the firm’s shares, which rose to 670p, registering a 1.5% increase and indicating a positive investor outlook.
Keystone Law’s strategic focus on high-quality recruitment and internal practice growth positions the firm for continued market leadership and profitability.
