UK's Keystone Law interim revenue rises 22.5% yr/yr

By Reuters News


Overview

  • UK law firm's interim revenue rose 22.5% yr/yr for six months ended July 2026

  • Adjusted pretax profit rose 31.3%, with adjusted basic EPS up to 23.1p

  • Company declared interim ordinary and special dividends, citing strong balance sheet


Outlook

  • Keystone Law expects FY 2027 revenue to be comfortably ahead of market expectations (£123 mln)

  • Company sees FY 2027 profits materially ahead of market expectations (£15.8 mln adj PBT)


Result Drivers

  • STRONG DEMAND - Co said revenue growth was driven by strong demand across the business, with corporate and corporate restructuring activity particularly strong

  • RECRUITMENT - Co said continued recruitment of high-calibre lawyers and expansion of fee earner base supported growth

  • AI TOOLS - Co said rollout and adoption of legal-specific AI tools enhanced its technology platform and supported user experience


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Adjusted Pretax Profit

GBP 9.60 mln


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy."

  • Wall Street's median 12-month price target for Keystone Law Group PLC is GBp970.00, about 57.5% above its September 11 closing price of GBp616.00

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago


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