INTERIM RESULTS
for the six months ended 31 July 2023
EXECUTIVE SUMMARY
1. THE MODEL
- Fully regulated law firm with plug and play platform
- Over 500 high quality, closely vetted, lawyers working from their own offices
- Simple pay when paid, performance- based, remuneration structure
- Lawyers themselves introduce 98% of clients
- Tech acts as a hub, driving efficiencies and limiting costs
2. GROWTH & SCALABLE
- Growth predominantly driven through recruitment of high calibre lawyers
- Excellent ability to scale due to pay when paid, own office working and fully scalable technology platform
- Pod concept further promotes growth and scale
3. THE OPPORTUNITY
- Profitable, cash generative, low risk, resilient business with excellent track record
- Seen by many as operating law firm model of the future, particularly in post COVID world
- Over £10bn largely addressable market
2
RESULTS HIGHLIGHTS
STRONG FINANCIAL PERFORMANCE
- Revenues up 14.9% on H1- 2023
- Revenue per Principal up 12.2% on H1-2023
- Adjusted PBT up 25.2% on H1- 2023
- Operating cash conversion 113%
- Ordinary Interim Dividend 5.8p and Special Dividend 12.5p per share
3
POSITIVE DEVELOPMENTS IN RECRUITMENT MARKET
- Recruitment market conditions improved
- Principals increased from 398 to 415
- Trend in Pod development continued
- Total fee earners up from 507 to 523
ONGOING INVESTMENT IN OUR PEOPLE AND CULTURE
- Central office team ensures delivery of exceptional service to our lawyers
- "Business as usual" as we continue to invest in our IT platform and infrastructure
- Ongoing focus on maintaining the cultural DNA of the business.
RECRUITMENT MARKET CONDITIONS EVOLVED POSITIVELY
144 | 42 | 25 |
Applicants (Principals) | Offers Made (Principals) | Offers Accepted (Principals) |
Up 18% on H1-2023 | Up 23.5% on H1-2023 | Up 47% on H1-2023 |
25 415
25 New Principals joined | Principals increased from | Continued underlying trend of |
H1-2023: 22 | 398 to 415 | growth in Pod members |
Qualified New Applicants
144
136
122
H1-2022H1-2023H1-2024
Offers Made / Accepted
42
3634
2825
17
H1-2022 | H1-2023 | H1 2024 |
Recruitment market conditions evolved positively with demand for candidates starting to ease, although economic uncertainty continues to weigh on candidate movement.
4
FINANCIAL HIGHLIGHTS
£42.3m | £5.7m | 13.5% | 113.3% | |||||
Revenue +14.9% | Adj. PBT +25.2%(1) | Adj. PBT Margin(1) | Operating cash conversion | |||||
H1-2023: £36.8m | H1-2023: £4.5m) | H1-2023: 12.4% | H1-2023: 101% |
£11.3m | 13.6p | 5.8p | 12.5p | ||||
Net cash | Adjusted EPS | Ordinary DPS | Special DPS | ||||
H1-2023: 7.5m | H1-2023: 11.1p | H1-2023: Ordinary 5.2p |
- Interest rates changed significantly between H1-2022 and H1-2023. This change contributed an extra £0.5m to Adj PBT, without which Adj PBT would have remained broadly stable at 12.4%
5
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Disclaimer
Keystone Law Group plc published this content on 14 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 September 2023 09:40:05 UTC.