Shares in Keystone Law Group PLC (AIM:KEYS) punched 14% higher to around 467p on Thursday after it confirmed full-year results will be “comfortably ahead of market expectations”.
Claiming activity levels and client demand remained strong during the last month and a half, the challenger law firm believes it will now be able to beat analyst consensus of revenue of £78.9 million and adjusted pre-tax profits of £9.5 million for the current year.
Recruitment conditions, which for most markets have had little to cheer about, have moved in Keystone’s favour and the group is now able to “attract high-calibre talent” despite some economic uncertainty dampening the inflow of candidates.
An interim dividend of 5.8p per share, up from 5.2p in 2022, and a special dividend of 12.5p have been recommended by management.
Revenues grew close to 15% in the six months to 31 July 2023 and reached £42.3 million, pre-tax profits spiked almost 30% reaching £5.3 million and net cash increased to £11.3 million from £7.5 million a year prior.
James Knight, chief executive officer of Keystone, said in the group’s interim trading update: "I have been delighted with the performance of the business during the first half of this year. As anticipated, recruitment market conditions have moved in our favour and Keystone's model continues to prove highly attractive to the high-calibre lawyers we pride ourselves on being able to attract and retain.
“I look forward to the rest of the year, confident that Keystone's core business fundamentals will continue to deliver strong results."