Keystone Law Group Plc · LSE:KEYS
Keystone Law — FY2025 Earnings Presentation
23 slides from Keystone Law's earnings presentation, May 6, 2025
Slide 1: Annual Results for the year ended 31 January 2025
ANNUAL RESULTS for the year ended 31 January 2025
Slide 2: Executive Summary
EXECUTIVE SUMMARY 1. THE MODEL 2. GROWTH & SCALABLE 3. THE OPPORTUNITY • Fully regulated law firm with plug and • Growth predominantly driven through • Profitable, cash generative, low risk, play platform recruitment of high calibre lawyers resilient business with excellent track record • Over 500 h
Slide 3: Results Highlights
RESULTS HIGHLIGHTS STRONG PERFORMANCE ACROSS ALL KPI’S RECRUITMENT ACTIVITY REMAINED POSITIVE • Revenue grew 11.1% • Recruitment market remained positive • Adjusted PBT up 12.8% • All recruitment KPIs remain strong • Operating cash conversion 94.5% • 50 high calibre Principals joined in the Period •
Slide 4: Recruitment KPIs Remain Strong
RECRUITMENT KPIS REMAIN STRONG Qualified New Applicants 283 95 52 283 270 232 Applicants (Principals) Offers Made (Principals) Offers Accepted (Principals) 2024: 270 2024: 103 2024: 68 2023 2024 2025 Offers Made / Accepted & Starters 50 455 576 557 103 95 79 New Principals joined Principals increase
Slide 5: Aspiring to Excellence Delivers Stakeholder Value
ASPIRING TO EXCELLENCE DELIVERS STAKEHOLDER VALUE • Quality focused recruitment strategy making Keystone the premier platform law firm • 207 Keystone lawyers ranked in Legal 500 UK Solicitors 2025 • Over 25% of joiners from UK office of large US law firm or top 25 UK law firm • Excellence in buildin
Slide 6: Community at the Heart of Keystone Law
COMMUNITY AT THE HEART OF KEYSTONE LAW CAUSE • Dedicated community and engagement team led by Keystone director, Fiona Severs • Extensive and diverse range of social and training events, run on a weekly basis, provides opportunities to build networks geographically, within business sectors or practi
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS £97.7m £11.6m £12.7m 13.0% Revenue +11.1% Adj. PBIT +11.8% Adj. PBT +12.8% Adj. PBT Margin 2024: £87.9m 2024: £10.4m 2024: £11.3m 2024: 12.8% 94.5% £9.7m 30.4p 20.2p & 15p Operating cash conversion Net cash Adjusted EPS Ordinary & Special DPS 2024: 96.1% 2024: £8.4m 2024: 27.4p
Slide 8: Income Statement
INCOME STATEMENT Year ended 31 January Revenue Adj PBIT £'000 2025 2024 Change Revenue up 11.1% to £97.7m driven by Adj PBIT has increased 11.8% to £11.3m. Revenue 97,703 87,931 11.1% good growth in Principal numbers which increased by 6.9%, with revenue per Adj PBIT margin of 12.0%, up 0.1% Gross P
Slide 9: Balance Sheet
BALANCE SHEET As at : 31-Jan 31-Jan £'000 2025 2024 Property, plant and equipment 772 121 Cash Fixed Assets Right of use assets 1,974 2,428 Intangible assets 4,807 5,056 Cash positive and debt free; net Following renewal of leases in Investments 129 129 cash £9.7m Chancery Lane we have carried out a
Slide 10: Cash Flow
CASH FLOW Year ended 31 January £'000 Profit before tax 2024 11,685 2023 10,306 Cash Generative Lease payments Depreciation - right of use assets 454 411 Model inherently cash generative and capital New leases signed effective April 24, with six Amortisation & other depreciation 369 487 light with l
Slide 11: Summary & Outlook
SUMMARY & OUTLOOK Summary Outlook Another excellent year for Keystone A positive start to the new financial year. Broad based client demand has remained strong Client demand and recruitment activity have both remained positive during Q1 2026. We have recruited 50 new high calibre Principals We are c
Slide 12: Appendix - Business Overview
APPENDIX - BUSINESS OVERVIEW
Slide 13: Keystone Law
KEYSTONE LAW FAST GROWING, A FULLY REGULATED TECH ENABLED PLATFORM LAW WELL DIVERSIFIED WITH PROFITABLE LAW FIRM FIRM NO CLIENT, LAWYER, WITH OPERATIONAL SECTOR OR PRACTICE • We deliver high quality conventional legal services to our clients GEARING AREA DEPENDENCY • Our clients are predominantly SM
Slide 14: The Model
THE MODEL Keystone contracts directly with the Keystone provides its lawyers with infrastructure and clients for the provision of legal services. support via its central office, a bespoke IT platform and access to a network of colleagues and events CLIENTS Keystone invoices the Keystone’s lawyers ar
Slide 15: Growth Strategy and Market Dynamics
GROWTH STRATEGY AND MARKET DYNAMICS 1. ORGANIC GROWTH 2. LARGE ADDRESSABLE 3. MARKET DYANMICS STRATEGY MARKET • Multiple factors make many • Primary driver of growth is recruitment • UK legal mid-market worth over £12b conventional law firms unhappy places of high calibre lawyers (“Principals”) reve
Slide 16: Track Record of Growth
TRACK RECORD OF GROWTH • Fast growing – revenue of £ 97.7m(1), increase of c14% p.a. (Jan 20– Jan 25) • UK’s 57th largest law firm by revenue (2) 121 115 117 • Profitable with enhancing margins 109 107 93 87 80 455 442 83 432 • Adjusted PBT (3) of £ 12.7m (1), increase of 17% p.a. (Jan 2020 – 79 399
Slide 17: Consistently Strong Financial Performance
CONSISTENTLY STRONG FINANCIAL PERFORMANCE Revenue per Principal (£’000) Revenue (£’m) Adj PBIT & Adj PBT (£’m) 220.3 97.7 211.9 87.9 12.7 71.2 76.4 10.4 11.3 11.6 192.9 59.1 9 9.1 9.1 9.2 186.7 5.9 6 169.5 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Cash generated from
Slide 18: Recruitment KPI's
RECRUITMENT KPI’S • Recruitment driven through three principal channels Qualified new applicants • Key determinant in success of candidates is their Starters (Principals) quality and their ability to build and maintain client relationships. 283 270 58 253 53 51 50 • The calibre of our lawyers underp
Slide 19: Why Lawyers Join Keystone
WHY LAWYERS JOIN KEYSTONE Survey of Keystone Lawyers November 2024 • Ability to focus on legal work and clients Firm culture • Avoid management obligations, commuting Sense of community and politics Work / life balance • Remuneration structure • Excellent brand, support and infrastructure Personal e
Slide 20: What Keystone Delivers to Its Lawyers
WHAT KEYSTONE DELIVERS TO ITS LAWYERS High calibre colleagues A supportive, inclusive Leading brand providing breadth and and collaborative and reputation depth of support and community referring work Marketing and business Compliance and Finance and development risk management administration IT inf
Slide 21: A Full-Service Law Firm: Well Diversified
A FULL-SERVICE LAW FIRM : WELL DIVERSIFIED Billing by Case Type 2025 • We deliver the full range of services our clients Other 2% need across the legal spectrum Private client Employment 5% 12% • Our growth strategy ensures this mix continues to grow and deepen • A well-balanced mix of service lines
Slide 22: Robust Risk Management
ROBUST RISK MANAGEMENT Survey of Keystone Lawyers November 2024 • Strategic planning Compliance team support • Selective recruitment • Regular training and professional development Compliance training • Experienced compliance and risk management team Anti money laundering • Use of technology and exc
Slide 23: Disclaimer
DISCLAIMER This presentation has been prepared by Keystone Law Group plc (“Keystone” or the “Company”) and the information contained herein is restricted and is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be con