Half-year Report
14 September 2026
Keystone Law Group Plc
('Keystone', the 'Group' or the 'Company')
Interim Results for the Six Months Ended 31 July 2026
- Expect FY 2027 revenue to be comfortably ahead and profits to be materially ahead of current market expectations (1)
- Continued rollout and adoption of AI tools enhances Keystone's technology platform
- Interim ordinary dividend of 9.6p and special dividend of 15p reflecting ongoing balance sheet strength and confidence
Keystone, the premier tech-enabled platform law firm, is pleased to announce its interim results for the six months ended 31 July 2026 ('H12027' or the 'Period').
Financial Highlights:
· Revenue growth of 22.5% to £66.3 million (H1 2026: £54.2 million)
· Revenue per Principal up 14.5% to £133.8k (H1 2026: £116.8k)
· Adjusted PBT up 31.3% to £9.6 million (H1 2026: £7.3 million) representing an adjusted PBT margin of 14.5% (H1 2026: 13.6%)
· Adjusted basic EPS of 23.1p (H1 2026: 17.8p)
· Cash generated from operations up 19.2% to £8.1 million (H1 2026: £6.8 million) with operating cash conversion of 95.6% (H1 2026: 104.2%)
· Strong balance sheet with net cash of £10.5 million (H1 2026: £6.5 million)
· Declared interim ordinary dividend of 9.6p per share and special dividend of 15p (H1 2026: interim ordinary dividend 7.5p)
Operational Highlights:
· Ongoing operational strength underpins high-quality sustainable growth
· Maintained solid recruitment activities despite ongoing geo-political uncertainty
o 148 new applicants in the Period (H1 2026: 164)
o 23 high-calibre new Principals added bringing total Principals to 501 (31 January 2026: 491), reinforcing Keystone's brand and market position
· Principals continue to grow their Pods with net growth of 18 other fee earners in the Period bringing total fee earners to 682 (31 January 2026: 654)
· Extended AI capabilities with rollout of CoCounsel Legal, a professional-grade generative AI tool specifically designed for the legal industry, complementing additional AI tools deployed in FY2026
· Completed brand refresh, launching new website alongside the production of extensive marketing collateral
· Central office team continues to provide service delivery excellence
Current Trading and Outlook:
· The Group has made a positive start to H2 2027
· The Board now expects that Keystone will deliver FY 2027 revenue comfortably ahead and profits materially ahead of current market expectations(1),
(1) Management understand market expectations prior to this announcement for FY2027 to be: revenue £123m, adjusted PBIT £13.8 and adjusted PBT £15.8m.
James Knight, Chief Executive Officer of Keystone, commented:
"I am extremely pleased with Keystone's performance in the Period. Strong demand across the business, continued recruitment of high-calibre lawyers and disciplined investment in our platform have delivered excellent financial performance and further strengthened our market-leading position.
We continue to invest in our technology, brand and community, including the rollout of further market-leading AI tools, to ensure our lawyers have the infrastructure and support they need to grow and sustain successful practices. With a strong first half and an encouraging start to H2, we remain confident in Keystone's ability to deliver sustainable long-term growth."
Analyst Briefing
A virtual meeting for sell-side analysts will be held virtually at 9.30 a.m. on Monday, 14 September 2026. Sell-side analysts wishing to attend this event can register via email at: keystonelaw@vigoconsulting.com
Retail Investor Presentation
Keystone's management team will provide a separate presentation and Q&A for retail investors at 1.00 p.m. on Tuesday, 15 September 2026.
The presentation will be hosted on the Investor Meet Company platform, where questions can be submitted pre-event up until 9.00 a.m. on the day before the meeting, or at any time during the live presentation.
Investors can register for free and subscribe to alerts on Keystone by visiting:
www.investormeetcompany.com/keystone-law-group-plc/register-investor
Investors who already follow Keystone on the Investor Meet Company platform will automatically be invited.
For further information please contact:
Keystone Law Group plc
James Knight, Chief Executive Officer
Ashley Miller, Finance Director
+44 (0) 20 3319 3700
Panmure Liberum Limited (Nominated Adviser and Joint Broker)
Atholl Tweedie (Corporate Finance)
Rupert Dearden (Corporate Broking)
www.panmureliberum.com
+44 (0) 20 7886 2500
Investec Bank plc (Joint Broker)
Carlton Nelson
James Rudd
+44 (0) 20 7597 5970
Vigo Consulting (Financial Public Relations)
Jeremy Garcia
Fiona Hetherington
keystonelaw@vigoconsulting.com
+44 (0)207 390 0233
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").
Notes to editors
Keystone (AIM: KEYS) the premier tech-enabled platform law firm. It is a highly scalable business with an organic growth strategy which has a proven record of delivering sustainable growth since its IPO in 2017. Ranked within the UK Top 100 law firms, Keystone provides conventional legal services in a £14bn addressable market through its differentiated platform model which has three defining characteristics:
· Lawyers have freedom, flexibility and autonomy, and are paid up to 75% of what they bill.
· Lawyers determine how, when and where they work, in contrast to the conventional law firm model.
· Lawyers are provided full infrastructure and support via its central office team, bespoke user-friendly IT platform, and network of colleagues and events.
Keystone is a full-service law firm, with extensive experience across a wide range of sectors and specialisms. With over 500 high calibre self-employed Principal lawyers, supported by over 180 other fee earners, Keystone delivers dynamic services to its client base which ranges from fast growing start-ups to multinational corporations and high net worth individuals.
More information about Keystone can be found at www.keystonelaw.co.uk.
Chief Executive Officer's Statement
I am delighted to report that the business has continued to trade strongly across the Period, delivering revenue growth of 22.5% and adjusted PBIT(1) growth of 31.6% year on year. We saw strong demand across the business, with activity in corporate and corporate restructuring over-indexing, which has driven revenue per Principal up to £133.8k, an increase of 14.5% on H1 2026. The strength of revenue growth has resulted in an increased adjusted PBIT margin of 12.3% (H1 2026: 11.4%), whilst the effect of interest rates being held has been that we have benefitted from net finance income of £1.5m, producing adjusted PBT(1) of £9.6m at a margin of 14.5% (H1 2026: £6.2m, 13.6%). The highly cash generative nature of our business model continues to underpin the high quality of earnings, with cash generated from operations increasing 19.2% to £8.1m.
The global geo-political uncertainty which has been persistent during the Period has resulted in a softer recruitment market, with candidate movement across the market reduced from the levels experienced during FY2026.
Against this backdrop we delivered a robust performance in attracting talent, adding 23 high calibre new Principals during the Period taking the total number of Principals to 501 (31 January 2026: 491). Furthermore, the strong demand within the business has underpinned the confidence of our lawyers to continue to recruit strongly into their Pods, with 23 new Pod members joining taking the total number of fee earners to 682 (31 January 2026: 654).
As reported in our FY 2026 annual report and accounts, our ongoing implementation and adoption of AI tools and solutions is a natural extension of our established IT strategy, and we continue to embrace the opportunities which this presents for our business. Applying innovative technology solutions which genuinely enhance the user experience of both our lawyers and clients is a part of the Keystone DNA. Having successfully deployed a secure enterprise grade version of ChatGPT and Claude as well as the Netdocuments generative AI tool during FY 2026, we have continued to extend the suite of AI tools available to our lawyers, successfully rolling out CoCounsel Legal ("CoCounsel") during the Period. As a leading generative AI tool specifically designed to work for the legal industry, CoCounsel's major differentiating factor is its ability to access not only open-source data but, more importantly, it accesses the extensive, market leading, legal knowledge databases owned by Thomson Reuters. This roll out builds on the successes of last year and we have seen an increasing level of uptake and utilisation of these AI solutions.
We firmly believe that it is only through the active promotion and ongoing training that the business will reap the full benefits of these tailored applications. Accordingly, we continue to invest in supporting both new and existing users to help them leverage the advantages these new solutions provide.
H1 2027 saw the culmination of our brand refresh project with the successful launch of our new website alongside the production of the extensive marketing collateral. This has significantly enhanced the visual perception of our brand, aligning it more accurately with the position which Keystone now occupies in the legal marketplace and amongst our peers.
Outside of these projects, the central office team has continued to drive the business forwards, delivering exceptional support to all aspects of our lawyers' working lives. We continue to invest in all elements of the business to ensure that we remain the standout choice of those high calibre lawyers we wish to attract and retain. As the market leading Premier platform law firm, "business as usual" for Keystone's central office team is a process of constant investment and improvement across all aspects of the business, underpinning the delivery of sustainable ongoing long-term success.
I would like to take this opportunity to thank my colleagues, both the lawyers and across the central office team, for their passion and dedication, which continues to drive the business forwards and has made these results possible.
Dividend and Capital Allocation
I am pleased to announce that the Board has declared an interim ordinary dividend of 9.6p per share as well as a special dividend of 15p per share. These dividends will be payable on 16 October 2026 to shareholders on the register on 25 September 2026, and the shares will go ex-dividend on 24 September 2026.
In May, we carried out a £1.5m on-market share buy-back programme. The objective of this programme was to buy sufficient shares to meet the Group's commitment under the Long Term Incentive Plan this year, thus avoiding any dilution that would otherwise arise through the issue of new shares. Having met these obligations, the small surplus of shares acquired (43,993 shares) were cancelled.
Summary and outlook
We are delighted with these strong results, underpinned by very strong financials, high quality, sustainable growth which continues to drive the business forwards and reinforces our market leading position.
We remain positive about our ongoing success, despite the global geo-political uncertainty which continues to persist.
In light of the successful performance of H1 2027, together with the encouraging start we have had to H2 2027, the Board now expects that Keystone will deliver revenue comfortably ahead and adjusted profits materially ahead of current market expectations(2) for FY 2027.
James Knight
Chief Executive Officer
11 September 2026
(1) Adjusted PBIT and adjusted PBT are calculated using profit before tax and adding back amortisation in the prior period and share-based payments for all periods.
(2) Management understands current market expectations for FY 2027 to be revenue of £123m and adjusted PBIT and adjusted PBT of £13.8m and £15.8m respectively.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 31 July 2026
Note
6 months to July 2026
(Unaudited)
£
6 months to July 2025
(Unaudited)
£
Revenue
66,348,606
54,151,537
Cost of sales
(49,435,074)
(40,358,020)
Gross profit
16,913,532
13,793,517
Trade receivables impairment
(1,108,171)
(265,266)
Corresponding reduction in trade payables
809,814
180,059
(298,357)
(85,207)
Administrative expenses
2
(8,265,070)
(7,211,696)
Depreciation
2
(346,214)
(346,456)
Share-based payments
2
(392,136)
(408,852)
Other operating income
145,562
43,461
Operating profit
7,757,317
5,784,767
Finance income
1,766,223
1,578,727
Finance costs
(280,213)
(431,834)
Profit before tax
9,243,327
6,931,660
Corporation tax expense
(2,326,443)
(1,724,898)
Profit and total comprehensive income for the period attributable to equity holders of the Parent
6,916,884
5,206,762
Basic EPS (p)
1
21.8
16.5
Diluted EPS (p)
1
21.4
16.2
The above results were derived from continuing operations.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 July 2026
Note
31 July 2026
(Unaudited)
£
31 July 2025
(Unaudited)
£
31 January 2026
(Audited)
£
Assets
Non-current assets
Property, plant and equipment
- Owned assets
553,645
690,053
629,880
- Right-of-use assets
1,278,058
1,741,680
1,509,869
Total property, plant and equipment
1,831,703
2,431,733
2,139,749
Intangible assets
4,807,411
4,807,411
4,807,411
Investments
313,738
129,350
313,738
6,952,852
7,368,494
7,260,898
Current assets
Trade and other receivables
3
37,905,294
30,043,484
32,787,578
Corporation tax
-
-
37,179
Cash and cash equivalents
10,462,544
6,505,516
9,744,084
48,367,838
36,549,000
42,568,841
Total assets
55,320,690
43,917,494
49,829,739
Equity and liabilities
Equity
Share capital
63,346
63,435
63,435
Share premium
9,920,760
9,920,760
9,920,760
Share-based payments reserve
607,086
968,590
1,411,055
Retained earnings
10,485,676
5,827,556
9,301,975
Equity attributable to equity holders of the Parent
21,076,868
16,780,340
20,697,225
Non-current liabilities
Lease liabilities
819,194
1,320,595
1,072,496
Provisions
1,227,354
1,198,130
1,340,830
2,046,548
2,518,725
2,413,326
Current liabilities
Trade and other payables
30,983,653
23,942,119
26,124,340
Lease liabilities
594,848
594,848
594,848
Corporation tax liability
618,773
81,462
-
32,197,274
24,618,429
26,719,188
Total liabilities
34,243,821
27,137,154
29,132,514
Total equity and liabilities
55,320,690
43,917,494
49,829,739
The interim statements were approved and authorised for issue by the Board of Directors on 11 September 2026 and were signed on its behalf by:
A Miller
Director
consolidated statement OF CHANGES IN EQUITY
For the period ended 31 July 2026
Attributable to equity holders of the Parent
Share capital
£
Share premium
£
Share-based payment reserve
£
Retained earnings
£
Total
£
At 31 January 2025 (audited)
63,186
9,920,760
1,276,080
9,102,454
20,362,480
Profit for the period and total comprehensive income
-
-
-
5,206,762
5,206,762
Transactions with owners
Share-based payments vesting
249
-
(716,345)
716,345
249
Share-based payments awards
-
-
408,852
-
408,852
Dividends paid
-
-
-
(9,198,002)
(9,198,002)
At 31 July 2025 (unaudited)
63,435
9,920,760
968,590
5,827,556
16,780,340
Profit for the period and total comprehensive income
-
-
-
5,853,214
5,853,214
Transactions with owners
Share-based payments vesting
-
-
-
-
-
Share-based payments awards
-
-
442,468
-
442,468
Dividends paid
-
-
-
(2,378,798)
(2,378,798)
At 31 January 2026 (audited)
63,435
9,920,760
1,411,055
9,301,975
20,697,225
Profit for the period and total comprehensive income
-
-
-
6,916,884
6,916,884
Transactions with owners
Share-based payments vesting
-
-
(1,196,105)
1,196,105
-
Share-based payments awards
-
-
392,136
-
392,136
Purchase of own shares into treasury
-
-
-
(1,510,556)
(1,510,556)
Cancellation of shares
(89)
-
-
-
(89)
Dividends paid
-
-
-
(5,418,732)
(5,418,732)
At 31 July 2026 (unaudited)
63,346
9,920,760
607,086
10,485,676
21,076,868
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 July 2026
Note
6 months to July 2026
(Unaudited)
£
6 months to July
2025
(Unaudited)
£
Year ended 31 January 2026
(Audited)
£
Cash flows from operating activities
Profit before tax
9,243,327
6,931,660
14,671,612
Adjustments to cash flows from non-cash items
Depreciation
2
346,214
346,056
691,074
Share-based payments
392,136
408,852
851,320
Revaluation of investment
-
-
(184,388)
Finance income
(1,766,223)
(1,578,727)
(3,196,726)
Finance costs
280,213
431,834
788,676
8,495,667
6,539,675
13,621,568
Working capital adjustments
(Increase) in trade and other receivables
(5,117,716)
(2,076,333)
(4,462,033)
Increase in trade and other payables
4,859,838
2,419,825
4,139,102
(Decrease) / Increase in provisions
(113,475)
35,895
178,595
Cash generated from operations
8,123,789
6,814,512
13,477,232
Interest paid on client balances
(236,092)
(377,191)
(684,708)
Interest portion of lease liability
(44,121)
(54,643)
(103,968)
Corporation taxes paid
(1,670,492)
(1,670,492)
(3,675,873)
Cash generated from operating activities
6,173,084
2,988,135
9,012,683
Cash flows from/(used in) investing activities
Interest received
1,766,223
1,578,727
3,196,726
Purchases of property, plant and equipment
(38,170)
(9,609)
(85,068)
Net cash generated from/(used in) investing activities
1,728,053
919,770
3,111,658
Cash flows from financing activities
Proceeds from issue of ordinary shares
-
248
249
Proceeds from LTIP vesting shares issued from treasury
448
-
-
Purchase of own shares into treasury
(1,510,566)
-
-
Lease repayments
(253,827)
(251,383)
(490,878)
Dividends paid
(5,418,732)
(9,189,002)
(11,576,800)
Net cash (used in) financing activities
(7,182,677)
(3,963,875)
(12,067,429)
Net (decrease)/increase in cash and cash equivalents
718,460
(3,181,656)
56,912
Cash at 1 February
9,744,084
9,687,172
9,687,172
Cash at 31 July
10,462,544
6,505,516
9,744,084
NOTES TO THE interim report
1. General Information
The Company was incorporated as Keystone Law Group Limited on 13 May 2014 under the Companies Act 2006 (registration no. 09039092) and subsequently used as the vehicle to acquire Keystone Law Limited (the main trading company in the Group) and its subsidiaries on 17 October 2014. The Company was re-registered as a Public Limited Company on 10 November 2017. The Company was incorporated and is domiciled in England and Wales. The principal activity of the Group is the provision of legal services. The address of its registered office is: 48 Chancery Lane London WC2A 1JF.
The Interim Report is presented in Pounds Sterling, being the functional currency of the companies within the Group.
ACCOUNTING POLICIES
STATEMENT OF COMPLIANCE
The Interim Report has been prepared in accordance with the recognition and measurement principles of UK-adopted International Accounting Standards.
BASIS OF PREPARATION
The Interim Report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 January 2026 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006. The Interim Report information has been prepared in accordance with the recognition and measurement principles of UK adopted International Accounting Standards, and on the same basis, and using the same accounting policies, as used in the financial statements for the year ended 31 January 2026.
The Interim Report has not been audited or reviewed, in accordance with the International Standard on Review Engagement 2410 (UK) issued by the Financial Reporting Council ("FRC").
GOING CONCERN
The Interim Report has been prepared on a going concern basis as the Directors have reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group has no debt, is strongly cash generative and has a strong trading performance. The Group's forecasts and projections show that the Group has sufficient resources for both current and anticipated cash requirements.
ACCOUNTING DEVELOPMENTS
There have been no new standards or interpretations relevant to the Group's operations applied in the Interim Report for the first time.
ADJUSTED PBT
Adjusted PBT is utilised as a key performance indication for the Group and is calculated as follows:
6 months to July 2026
(Unaudited)
£'000
6 months to July
2025
(Unaudited)
£'000
Profit before tax
9,243
6,932
Share-based payments
392
409
Adjusted PBT
9,635
7,341
Earnings per Share
Basic earnings per share is calculated by dividing the profit for the period by the weighted average number of ordinary shares outstanding during the period. The weighted average number of shares in the period was 31,669,151 (H1 2026: 31,625,863) and the basic earnings per share was 21.8p (H1 2026: 16.5p). Diluted earnings per share is calculated by dividing the same profit by the weighted average number of ordinary shares, taking into account the dilution effect from grants made under the Long-Term Incentive Plan (32,255,277 ; H1 2026: 32,210,899). Diluted earnings per share was 21.4p (H1 2026: 16.2p).
The adjusted earnings per share was 23.1p (H1 2026: 17.8p), whilst the diluted adjusted earnings per share was 22.7p (H1 2026: 17.4p). Adjusted earnings are stated by making the same adjustments to earnings as those made in calculating adjusted PBT.
2. Expenses by Nature
Expenses are comprised of:
6 months to July 2026
(Unaudited)
£
6 months to July
2025
(Unaudited)
£
Depreciation - right-of-use assets
231,810
232,050
Depreciation - other
114,404
114,406
Staff costs
4,427,645
3,907,870
Share-based payments
392,136
408,852
Other administrative expenses
4,690,379
4,104,844
9,856,374
8,768,022
Included within staff costs above are the costs of employed fee earners who are included within cost of sale (H1 2027: £852,954; H1 2026: £801,018).
3. Trade and Other Receivables
31 July 2026
(Unaudited)
£
31 July 2025
(Unaudited)
£
31 January 2026
(Audited)
£
Trade receivables
24,550,726
19,060,337
21,102,102
Provision for impairment of trade receivables
(6,675,704)
(5,497,587)
(6,675,704)
Net trade receivables
17,875,022
13,562,750
14,426,398
Accrued income
15,988,731
13,533,029
14,656,053
Prepayments
2,040,590
1,305,226
1,959,022
Unbilled disbursements
1,429,652
1,022,206
951,433
Reimbursement asset
330,975
478,311
538,148
Other receivables
240,323
141,963
256,524
Total current trade and other receivables
37,905,293
30,043,484
32,787,578
Net trade receivables average age (days) (unaudited)
33
33
35
4. DIVIDENDS
The Directors have declared an interim ordinary dividend of 9.6p per share and a special dividend of 15p per share (H1 2026: interim ordinary dividend of 7.5p per share). The dividends will be paid on 16 October 2026 to shareholders on the register on 25 September 2026, with the shares going ex-dividend on 24 September 2026. In accordance with IAS10 "events after the balance sheet date", these dividends have not been reflected in the Interim Report.
Keystone Law
48 Chancery Lane London WC2A 1JF
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