Keystone Law Group (KEYS) H1 2027 earnings summary

Executive summary

• Delivered strong interim results for the six months ended 31 July 2026, with robust revenue and profit growth driven by continued recruitment of high-calibre lawyers and a scalable, tech-enabled platform.

• Maintains a disruptive, low-risk, highly cash-generative business model in the mid-market commercial law sector, leveraging technology, flexible working, and a progressive dividend policy.

• Ongoing investment in AI adoption, brand refresh, and recruitment to support growth and reputation, despite a softer recruitment market due to geopolitical uncertainty.

Financial highlights

• Revenue increased 22.5% year-over-year to £66.3m; revenue per Principal rose 14.5% to £133.8k.

• Adjusted PBIT rose 31.6% to £8.1m; adjusted PBT up 31.3% to £9.6m, with margin at 14.5%.

• Adjusted EPS increased to 23.1p from 17.8p year-over-year.

• Cash conversion at 95.6%, with period-end net cash of £10.5m.

• Share buyback of £1.5m completed; interim dividend of 9.6p and special dividend of 15p per share declared.

Outlook and guidance

• Positive outlook for H2 2027, with revenue and profits expected to be comfortably and materially ahead of market expectations.

• Confident in delivering strong, sustainable growth despite global geopolitical uncertainty impacting recruitment.