Keystone Law Group plc reported a 22.5% increase in revenue to £66.3 million for the six months ended July 31, 2026, compared to £54.1 million in the previous period. Adjusted profit before tax (PBT) rose 31.3% to £9.6 million, while adjusted profit before interest and tax (PBIT) increased 31.6% to £8.1 million. Adjusted earnings per share (EPS) climbed to 23.1 pence, up from 17.8 pence the previous year.
The company's profit margins also improved, with the adjusted PBT margin reaching 14.5% and the adjusted PBIT margin increasing to 12.3%. Keystone maintained a strong financial position with a net cash position of £10.5 million and zero debt. The cash conversion rate stood at 95.6%, indicating efficient cash management.
Shares of Keystone Law Group rose 4.8% to £695.84, approaching their 52-week high of £700. The stock has traded between £444 and £700 over the past year.
Keystone Law Group, founded 25 years ago and listed on the London Stock Exchange in 2017, operates in the mid-market commercial law sector, valued at approximately £14 billion. The company's revenue per principal increased 14.5% to £133,800, driven by a 7.1% year-on-year rise in the number of principals and a 12.5% increase in total fee earners.
The company's headcount reached 682 total lawyers, with 501 principals and 92 support staff. Keystone recruited 23 high-caliber principals and 23 pod members during the half year. Corporate and corporate restructuring revenue accounted for 20% of total revenue, up from 16% a year earlier, including £2 million in "lumpier" revenue.
James Knight, CEO of Keystone Law Group, stated: "We operate a very efficient pay-when-paid model, which allows the lawyers to achieve the efficiencies and the freedoms and the flexibilities that they want, whilst helping our financials."
Ashley, CFO of Keystone Law Group, commented: "Revenue increased 22.5%, taking us up to £66.3 million, whilst adjusted PBIT has grown 31.6% to £8.1 million."
Keystone Law Group completed a share buyback of £1.5 million, buying just under 268,000 shares to fulfill commitments under the Long-Term Incentive Plan (LTIP). The company also declared an interim dividend of 9.6 pence and a special dividend of 15 pence.
