AIM-listed ‘challenger’ law firm Keystone (KEYS) raised its FY26 guidance alongside its latest trading update. The company said revenue and adjusted pre-tax profit for the year to January 2026 were marginally above market expectations.
| Share price: 608p (+4.8%) | PE: 20x |
| Market cap: £193m | Yield: 3.7% |
Buoyant trading
Keystone operates as a platform for lawyers, allowing them the freedom to work how, when and where they work. It provides full infrastructure and support via a central office and bespoke IT in exchange for 25% of billings.
The firm said its business had performed ‘strongly’ during the year, helped by ‘buoyant trading conditions’. Good client demand meant revenue per principal rose 10%, while it recruited a further 61 new principals.
That took the total number of principals to 491, while other fee earners increased to 163 during the year. The firm says it has a total addressable market of £12 billion, whereas the market forecast for FY26 revenue is £109 million.
‘These results are testament to the broad appeal of Keystone’s brand and our ongoing ability to attract and retain highly successful lawyers’, said CEO James Knight.
Keystone has been a great success story since it burst onto the scene just under a decade ago. Lawyer numbers, revenue, profit and cash flow have increased consistently year after year.
However, the shares have gone nowhere since 2020 and were trading at an interim low heading into today’s announcement. For investors looking to diversify their portfolios, the law sector offers a steady and differentiated source of income.
Read the press release here: https://www.keystonelaw-ir.co.uk/
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