Keystone Law shares dip despite full year profits

Keystone Law shares dip despite full year profits

UK-based Legal services provider Keystone Law Group Plc (LON:KEYS) have seen their share price dip during trading today, despite reporting bumper annual profits in their recent trade update.

Recruitment and revenue

The company stated that its annual results had ‘comfortably’ topped market expectations with revenue growth led by new lawyers recruited last year and during the current year, contributing to full-year profits. The firm said that their number of principle lawyers has increased from 244 to 247 and in line with this, adjusted pre-tax profits for the full year through January 31st stood at £5.1 million, up 56.8% on-year. Revenue was also up 35.1% to £42.7 million.

Keystone commented on their recent update

“I am happy to report that the business has performed strongly throughout our first full year as a public company and as such has delivered good growth across all the business KPIs.  Revenue and profit growth have converted to cash and this means that we are in a position to pay out a dividend of 2/3rds adjusted PAT which is in line with what we said at the time of the IPO,” said James Knight, Chief Executive Officer of Keystone Law.

“The current year has started well and the activity of the existing lawyers, together with the strength of our recruitment pipeline, gives me great confidence that the business will deliver another year of strong performance and profit growth.  I look forward to another exciting year of growth and development as we continue to pursue our strategy for success.”

Portfolio considerations

In line with policy established in the initial public offering, the company proposed a dividend of 6.5p a share, meaning the firm’s full-year dividend amounts to 9p a share.

The company’s shares are currently trading down 17p or 3.35% since markets opened on Wednesday morning, at 490p a share 08/05/19 16:27 GMT.