Today, the shares in Keystone Law, a law firm, jumped by almost 15 percent after it announced that it is expecting to be “comfortably ahead” of the market profit expectations for its financial year.
Keystone became just the third firm in the United Kingdom to float when it went public in November 2017. It said that it continued to trade strongly in the second half of the year as it approaches its year end on the 31st of January.
After the announcement the share price of Keystone rose by almost 15 percent to 390p.
In November 2017, Keystone floated on the junior Aim market of London at a share price of 160p.
The law firm was launched in 2002. It operates a platform model, that recruit partners with their own books of business. Keystone provides an overarching brand and centralised functions such as finance and information technology.
The lawyers do not receive a fixed fee from Keystone, instead, the company passes down between 60 and 75 percent of the fees charged to individual lawyers.
James Knight, the Chief executive of the company, stated: “Our distinctive platform model has successfully attracted a significant number of new, high-quality lawyers which has helped us scale the business. This impressive growth coupled with the excellent performance and hard work of our lawyers means that we are confident that we will comfortably beat market expectations.”
Tom Callan, an analyst at Panmure Gordon, said that the strong profit expectations were a function of “sustainable margin improvements” and “strong growth in new net hiring” couples with strong revenue per fee earner figures.
Keystone is one of the five law firms that are listed on the public markets in the United Kingdom.
DWF, a top 25 law firm, is aiming for a £600 million main market float in the first quarter of the year, in what would be the largest law firm listing to date if it gets away.