29 April 2026

Keystone Law Group Plc

('Keystone', the 'Group' or the 'Company')

Full Year Results for the Year Ended 31 January 2026

- Significant revenue and profit growth delivering results marginally ahead of market expectations ⁽¹⁾

- A record number of fee earners joined Keystone increasing total fee earners by 13.5% to 654

- AI success being achieved by implementing and promoting solutions tailored to our business

Keystone, the premier tech-enabled platform law firm, is pleased to announce its full year results for the year ended 31 January 2026 ('FY2026' or the 'Period').

 2026

Financial Highlights:

·    Revenue growth of 17.9% to £115.2 million (2025: £97.7 million)

·    Revenue per Principal up 10.5% to £243k (2025: £220k)

·    Adjusted PBT up 20.6% to £15.3 million (2025: £12.7 million) representing an adjusted PBT margin of 13.3% (2025: 13.0%)

·    Adjusted basic EPS of 37.0p (2025: 30.4p)

·    Cash generated from operations up 17% to £13.5 million (2025: £11.5 million) with operating cash conversion of 98.9% (2025: 94.5%)

·    Strong balance sheet with net cash of £9.7 million (2025: £9.7 million)

·    Paid interim ordinary dividend of 7.5p per share and proposed final ordinary dividend of 17.2p per share bringing total ordinary dividend per share to 24.7p per share (2025: 20.2p)

Operational Highlights:

·    Delivered an excellent operational and financial performance with strong client demand across the business

·    Significant levels of applicant demand in the Period reflecting Keystone's market position

o  Buoyant recruitment environment delivered 294 qualified new applicants (2025: 283) in the Period

o  22% increase in Principals recruited with 61 new Principals added (2025: 50) bringing total Principals to 491 (2025: 455)

o  31% increase in offers accepted with 68 new joiners in the Period (2025: 52)

o  35% increase in 'other' fee earners to 163 (146 pod members and 17 central office lawyers), with total fee earners up 13.5% to 654

·    Quality focused recruitment strategy continues to reinforce Keystone as 'the premier platform law firm'

o  221 Keystone lawyers ranked in Legal 500 UK Solicitors 2025 (2025: 207 listed, up from 65 in 2019)

·    Investment in Keystone's tech-enabled platform and ongoing AI adoption

o  Ongoing implementation and evaluation of IT infrastructure to drive real impact for our lawyers and the broader business

o  Rolled out several AI initiatives to enhance our offering to lawyers, including deploying secure, locked-down versions of ChatGPT and Claude and adopting the NetDocuments AI extension

·    Designed and delivered our brand refresh which accurately reflect Keystone today

o  Launched a new website and marketing collateral in Q1 2027, enhancing stakeholder experience and strengthening our market position to support growth

Current Trading and Outlook:

·    The Group has made a positive start to 2027 with client demand and recruitment activity remaining positive during Q1 2027

·    The Board remains confident that Keystone will continue to deliver strong, sustainable growth and expects adjusted PBT to be ahead of current market expectations for 2027 ^(2),

(1) Management understand market expectations prior to this announcement for 2026 to be: revenue £114.3m, adjusted PBIT £12.7 and adjusted PBT £15.1m.

(2) Management understand market expectations prior to this announcement for 2027 to be: revenue £122.3m, adjusted PBIT £13.6 and adjusted PBT £15.1m.

James Knight, Chief Executive Officer of Keystone, commented:

"We delivered another excellent year for Keystone, with strong operational and financial momentum driven by sustained client demand and continued growth in lawyer numbers.

Our brand refresh, which more accurately reflects the evolution of Keystone, underscores our ambition and further reinforces our position as the premier tech-enabled platform law firm.  In addition, the ongoing investment in IT infrastructure and AI capabilities continues to differentiate our highly scalable model, underpinning both our strong balance sheet and progressive dividend policy.

I would like to personally thank everyone at Keystone for their ongoing support and look forward to the new financial year which I'm confident will be another period of sustained growth."

Analyst Briefing

A virtual meeting for sell-side analysts will be held virtually at 9.30 a.m. on Wednesday, 29 April 2026. Sell-side analysts wishing to attend this event can register via email at: keystonelaw@vigoconsulting.com

Retail Investor Presentation

Keystone's management team will provide a separate presentation and Q&A for retail investors at 1.00 p.m. on Friday, 1 May 2026.

The presentation will be hosted on the Investor Meet Company platform, where questions can be submitted pre-event up until 9.00 a.m. on the day before the meeting, or at any time during the live presentation.

Investors can register for free and subscribe to alerts on Keystone by visiting:

www.investormeetcompany.com/keystone-law-group-plc/register-investor

Investors who already follow Keystone on the Investor Meet Company platform will automatically be invited.

For further information please contact:

Keystone Law Group plc

James Knight, Chief Executive Officer

Ashley Miller, Finance Director

www.keystonelaw.com

 +44 (0) 20 3319 3700

Panmure Liberum Limited (Nominated Adviser and Joint Broker)

Atholl Tweedie (Corporate Finance)

Rupert Dearden (Corporate Broking)

www.panmureliberum.com

+44 (0) 20 7886 2500

Investec Bank plc (Joint Broker)

Carlton Nelson

James Rudd

www.investec.co.uk

+44 (0) 20 7597 5970

Vigo Consulting (Financial Public Relations)

Jeremy Garcia

Fiona Hetherington

keystonelaw@vigoconsulting.com

+44 (0)207 390 0233

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

Notes to editors

Keystone (AIM: KEYS) the premier tech-enabled platform law firm. It is a highly scalable business with an organic growth strategy which has a proven record of delivering sustainable growth since its IPO in 2018.  Ranked within the UK Top 100 law firms, Keystone provides conventional legal services in a £14bn addressable market through its differentiated platform model which has three defining characteristics:

·    Lawyers have freedom, flexibility and autonomy, and are paid up to 75% of what they bill.

·    Lawyers determine how, when and where they work, in contrast to the conventional law firm model.

·    Lawyers are provided full infrastructure and support via its central office team, bespoke user-friendly IT platform, and network of colleagues and events.

Keystone is a full-service law firm, with extensive experience across a wide range of sectors and specialisms.   With nearly 500 high calibre self-employed Principal lawyers, supported by over 150 other fee earners, Keystone delivers dynamic services to its client base which ranges from fast growing start-ups to multinational corporations and high net worth individuals.

More information about Keystone can be found at www.keystonelaw.co.uk.

CHAIRMAN'S STATEMENT

It is my pleasure to introduce Keystone Law's results for the year ended 31 January 2026.

The business has delivered another strong performance, both operationally and financially.  A record number of fee earners have joined this year, 61 new principals and 63 pod members, increasing total fee earners by 13.5%.  Our lawyers have taken advantage of the sustained, broad based client demand to drive revenue up by 17.9% to £115.2m, producing adjusted PBIT⁽¹⁾ of £12.9m (2025: £11.6m) and adjusted PBT⁽¹⁾ of £15.3m representing a 13.3% margin (2025: £12.7m, 13.0% margin). PBT was £14.7m at a margin of 12.7% (2025: £11.7m, 12.0%), whilst retained earnings were £11.1m (2025: £8.6m).  The quality of these earnings is extremely high, as demonstrated by the high level of cash generation at £11.6m pre dividends (2025: £7.2m).

DIVIDEND

The strong level of cash generation from our business model ensures that we are well placed to return value to our stakeholders through our progressive dividend policy in line with which we are proposing to pay a final ordinary dividend of 17.2p. Having paid an ordinary interim dividend of 7.5p (2025: 6.2p), this will bring the total ordinary dividend for the year to 24.7p (2025: 20.2p).

This will bring the total value of dividends paid since IPO to approximately £54m, or equivalent to just over 169p⁽²⁾ per share, which is 91% of the adjusted earnings⁽¹⁾ generated by the business over the same period.

OUR AI JOURNEY

AI, and the successful application of its technology, has been a significant focus point of the management team this year.  We firmly believe that the successful adoption of this new technology will enhance the Keystone proposition for both lawyers and clients.  We are focused on identifying and implementing tools and solutions which genuinely improve our service delivery whilst driving user adoption through education and training.  We believe that this approach provides further support for our successful growth strategy.

THE KEYSTONE COMMUNITY AT THE HEART OF OUR SUCCESS

Our success is delivered by, and is a reflection of, the people who comprise the Keystone community.  Keystone is different by design and this difference extends to the emphasis we place on developing, maintaining and enhancing the Keystone community which sits at the heart of the business.  Our community focused business model is a real differentiating factor in attracting and retaining lawyers.  By building genuine relationships across the business our approach delivers real value to our clients, as they benefit from multi-lawyer and multi-disciplinary teams which work together with a real understanding and appreciation of both their technical and cultural needs.  All of this underpins the long-term sustainable creation of value for all stakeholders.

THE CENTRAL OFFICE TEAM

The hard work and dedication of our central office team delivers a first-class service to our lawyers, and their clients, and is a further differentiating factor on which our success is built.  By treating our lawyers as if they were our clients, we ensure an exceptional standard of support.  Our focus is always on improving the lawyer and client experience and this is demonstrated consistently through the ongoing investment we make in our people, our systems and our community.

BOARD AND GOVERNANCE

This is the first year that the updated Quoted Companies Alliance ("QCA") code, which was issued in 2023, became effective in its entirety.  We had already adopted a number of the updated guidance included within this ahead of the code timeline and I confirm that this year we have operated within the structures and governance requirements of this updated code throughout the year with the final element needed to satisfy all requirements being the placing of the remuneration report within this annual report before shareholders for a non-binding advisory vote; this will take place at our coming AGM.

OUTLOOK

I am pleased to report that the momentum which we had experienced through 2026 has continued into the early part of 2027 which provides us with confidence for the year ahead.

Robin Williams

Non-executive Chairman

28 April 2026

(1) Adjusted   PBT, adjusted PBIT and adjusted earnings are calculated by adding share-based payment costs, gains on assets held at fair value and amortisation of intangible assets to PBT, PBIT or earnings respectively. Details of these calculations are shown in the Financial Review.

(2) Sum of the Ordinary DPS and special dividends DPS paid and proposed for the years ended 31 January 2019 to 31 January 2026.

CHIEF EXECUTIVE'S REVIEW

INTRODUCTION AND HIGHLIGHTS

I am delighted to report that 2026 has been another excellent year for Keystone. We have continued to drive the business forwards, building on the success and momentum of earlier years to deliver another strong set of results, both operationally and financially.  We remain focused on the delivery of our high-calibre organic growth strategy, taking advantage of the significant opportunity that the UK legal mid-market represents.  We have now firmly established Keystone as the premier platform law firm, with nearly 500 partner level lawyers offering our clients a range and depth of experience and knowledge which clearly distinguishes us from the competition. The calibre of our lawyers is excellent, as demonstrated by their professional backgrounds and in a great many cases their recognition in the leading legal directories. These factors, together with the extensive range of other benefits Keystone lawyers enjoy, continue to underpin the growth and success of the business.

This year, the business has benefitted from sustained, broad-based, client demand which, together with the continued growth in lawyer numbers, has driven revenue up by 17.9% to £115.2m.  The revenue growth has been created predominantly by our Principals⁽¹⁾ and their pods with gross profit growing 15.2% on a gross margin of 25.5% (2025: 26.1%) and adjusted PBIT increased by 11.4% to £12.9m at a margin of 11.2% (2025: 11.9%).  Successful renegotiation of bank interest rates and the slow pace of the reduction of Bank of England base rates has also contributed to strong adjusted PBT and PBT growth, up 20.6% and 25.6% to £15.3m and £14.7m respectively.

The strength of our proposition to lawyers and their clients underpins our strong recruitment performance and we have seen a record number of fee earners join the business, with total fee earners increasing 13.5% to 654.

record RECRUITMENTnumber of fee earners joining keystone

The recruitment market conditions have continued to be favourable for Keystone and, as the premier platform law firm, we have been well positioned to take advantage of this.  Accordingly, we have recruited a record number of new fee earners, with 61 new principals (2025: 50) and 63 pod members joining this year.

During the year, we received 294 qualified applicants (2025: 283), made offers to 96 candidates (2025: 95) with 68 candidates accepting offers (2025: 52). Principal numbers increased by 7.7% to 491 whilst the number of other fee earners increased by 35.8% to 163 (146 pod members and 17 central office employed lawyers).  This increase in other fee earners is an extremely positive development, with 14 of the net increase (36 in total) being attributable to Principals who themselves joined in the year (the equivalent statistic for 2025 was 1 or a net increase of 5).  This demonstrates the confidence that those Principals have in the sustainable size of their practices.

The strength and depth of experience that Keystone offers our clients is a significant differentiating factor when recruiting, as like attracts like.  By only recruiting lawyers of the highest quality, we have created a virtuous circle, establishing the business firmly at the top end of the legal profession. This strength in depth is reflected in the number of Keystone lawyers ranked in the leading legal directories, with 221 being recognised in the Legal 500 UK Solicitors 2025 rankings⁽²⁾ (2025: 207 listed up from 65 in 2019).

IT INNOVATION AND THE AI JOURNEY

For us, the innovative application of technology to deliver real solutions and make a genuine difference to our lawyers' working lives is a central tenet of the Keystone model.  As such, our approach to the AI journey is simply a logical extension of this and absolutely consistent with our solutions focused IT strategy. 

We believe that the term "AI journey" accurately reflects our approach to AI.  There is no single solution to be bought and deployed which will end this journey.  It is our belief that by adopting, implementing and using the underlying technology we will continue to drive the Keystone proposition forwards enhancing value for all stakeholders. 

This year, our IT team and user groups have continued assessing new tools and products as they have come to market, considering how, and to what extent, these may be deployed to genuinely impact the lives of our lawyers and drive the business forwards.  This is a continuous and ongoing process, and the insights of this work continue to inform our development and solutions implementation. We believe that for our journey to deliver real value, it is necessary to innovate across our IT estate implementing a range of products and solutions, tailoring these to our business. This year, we have rolled out several AI initiatives to further enhance our offering to lawyers; on the generative AI front we have deployed a secure locked down version of ChatGPT and Claude as well as adopting the NetDocuments AI extension.  We recognise that for these solutions to make a difference they need to be widely adopted across the business and so we have invested significant time and energy in promoting the benefits of AI and training our lawyers to use it, thereby empowering them to make the most of these new tools.  This approach has ensured the successful adoption of these tools with over half our lawyers already using them regularly. 

Furthermore, working with expert external consultants we have identified several possible applications for agentic AI agents within the business.  We have applied a combination of generative and agentic AI to enable our lawyers to interrogate our substantial operating manual in seconds saving them time and improving their experience.  With regards to agentic AI we have harnessed this technology in new tools which we have rolled out to support our lawyers in complying with AML legislation regarding identification of source of funds as well as providing an enhanced approach to conflict checking. 

BRAND REFRESH

It has been an extremely busy year for our marketing team.  Alongside delivering the day to day support our lawyers need, they have also worked closely with external advisers to design and deliver our brand refresh, ensuring that the external presentation of Keystone accurately reflects the business we are today.  The new website and extensive marketing collateral used to support the business has gone live post year end and I am delighted with the results.  I believe that the new look and feel significantly enhances the Keystone offering, aligning with the broader brand position of Keystone in the marketplace. These changes will enhance the experience of all stakeholders interacting with the business, further supporting our growth strategy.

HIGH CALIBRE SUPPORT FOR HIGH CALIBRE LAWYERS

The central office team has had another busy and successful year.  The support provided is of the highest standard and we work extremely hard to ensure that it continues to meet and exceed the expectations of the high calibre lawyers we support.  Each element of the support we provide is fundamental to the overall success of the business and whether that be through the role of the community and engagement team bringing the lawyers together, enhancing the culture and lawyer experience or the compliance team which supports the business in navigating the continually evolving regulatory environment within which we must operate or any one of the other teams.  Each team works to the highest of standards, complementing each other to ensure the overall success of the business and I am enormously proud of all they have achieved this year.

LOOKING AHEAD

We have made a positive start to the current financial year, with trading conditions remaining largely unchanged to those of last year.  In light of this, we are confident that the business will continue to drive forwards, delivering sustainable growth and, due to the change in the interest rate environment, we now expect adjusted PBT for the coming year to be ahead of market expectations.

James Knight

Chief Executive

28 April 2026

⁽¹⁾      Principal lawyers are the senior lawyers who own the service company ("Pod") which contracts with Keystone. The relationship between Keystone and its lawyers is governed by two agreements: a service agreement (which governs the commercial terms and is between the Pod and Keystone) and a compliance agreement (which governs the behaviour of lawyers and is between each lawyer and Keystone). Pods can employ more than one fee earner. A junior lawyer who is employed by a Pod ("Pod Member") is, to all intents and purposes, a Keystone lawyer and is presented to the outside world in much the same way as a conventional law firm would present a conventionally employed junior lawyer. Junior lawyers are interviewed and fully vetted by our recruitment team, ensuring they are of the requisite quality and calibre. These juniors also sign a compliance agreement and have to comply with all rules and regulations governing the professional conduct of Keystone's lawyers.

⁽²⁾      The Legal 500 UK Solicitors 2025 rankings is the leading guide to law firms and solicitors in the UK (Source: Legal500.com).

Financial Review and Strategic Report

KEY PERFORMANCE INDICATORS (KPIs)

The following KPIs are used by the management to monitor the financial and operational performance of the Group:

•    Revenue growth: 17.9% increase (2025: 11.1%)

•    Adjusted PBT⁽³⁾ growth: 20.6% increase (2025: 12.8%)

•    Adjusted PBT margin⁽³⁾: 13.3% (2025: 13.0%)

•    PBT growth: 25.6% increase (2025: 13.4%)

•    PBT margin: 12.7% (2025: 12.0%)

•    Adjusted basic EPS⁽³⁾: 37.0p (2025: 30.4p)

•    Operating cash conversion: 98.9%⁽¹⁾ (2025: 94.5%)

•    Trade receivables days: 35 (2025: 34)

•    Qualified new applicants⁽²⁾: 294 (2025: 283)

•    Offers made⁽²⁾: 96 (2025: 95)

•    Offers accepted⁽²⁾: 68 (2025: 52)

⁽¹⁾      Operating cash conversion is calculated utilising cash generated from operations and dividing it by the PBT before non-cash movements and net interest (2026: £13,621,568 per cash flow statement).

⁽²⁾      Non-financial KPIs are commented on with the Chief Executive's review. Recruitment data refers to numbers of potential Principals.

⁽³⁾      The calculation of adjusted PBT, adjusted PBT margin and adjusted EPS is shown on the next page.

REVENUE

I am delighted to report that revenue increased this year by 17.9% to £115.2m. This strong revenue growth has been driven by broad based client demand and continued strength in recruitment, both of Principals and pod members.  In terms of Principal numbers, we ended the period with 491 Principals and averaged 473 (2025: ended with 455 and averaged 443.5), whilst a net increase of 36 pod members means that total fee earners has increased by 13.5% to 654 (2025: 576). These factors have facilitated the continued growth in revenue per Principal, which has increased this year by 10.5% to £243k (2025: £220k).

GROSS PROFIT

The increased revenue this year generated growth in gross profit of 15.2% to £29.3m (2025: £25.5m).  The strong revenue growth was driven predominantly by the Principals and their Pods, such that the share of gross profit generated by those lawyers on whom we enjoy enhanced gross margins⁽⁴⁾ has fallen.  Accordingly, the gross margin of 25.5% was lower than last year (2025: 26.1%), this reduction in margin flows through to PBT.

⁽⁴⁾ Enhanced GM% delivered by central office employed lawyers and those lawyers based on the Isle of Man.

DEPRECIATION, AMORTISATION, SHARE-BASED PAYMENTS AND GAINS ON INVESTMENTS

Depreciation has increased this year by £0.1m as the 2024 fit out costs of our Chancery Lane offices only started being depreciated in November 2025.  There was no amortisation charge for intangibles this year as the underlying asset on which this had been charged became fully amortised during the prior year (2025: £0.25m). The charge in respect of share-based payments increased from £0.8m to £0.85m, whilst the carrying value of the investment held by the business in Keypoint Law PTY Limited was revalued resulting in an unrealised gain of £0.2m.

OTHER ADMINISTRATIVE EXPENSES

Other administrative expenses have increased by 18.3% to £15.3m (2025: £12.9m). Staff costs increased by 17.0% to £6.3m (2025: £5.4m), driven by the investment in the additional personnel needed (2026: 81, 2025: 69) to ensure that the services provided to our lawyers remain a differentiating factor, together with pay rises and promotions reflective of the competitive market environment. 

Other administrative costs (per note 4) increased by 19.3% to £9.0m (2025: £7.5m), most significantly driven by an increased cost in lawyer recruitment fees (up £0.5m year on year) as a number of lawyers with large practices joined this year via recruitment agencies.  The other main contributory factors to this increase were the increased investment in IT, costs associated with the brand refresh and the 13.5% increase in the average number of fee earners supported by the business.

FINANCE INCOME AND COSTS

During the first half of this year, we successfully renegotiated with our bank to receive enhanced interest rates on funds held.  This, in conjunction with the continued slow pace in the reduction of base rates has meant that we have seen a substantial increase in the net finance income received (2026: £2.4m, 2025: £1.1m).

PBT, ADJUSTED PBT AND PBT MARGINS

Adjusted PBT is calculated as follows:

The Board consider adjusted PBT and adjusted PBIT to be better measures of performance than PBT or PBIT, as the adjustments made exclude items which are either not a result of the underlying performance of the business (as is the case for the unrealised gain on the investment held at fair value or the amortisation, in the prior years, which arose from the structuring of the 2014 private equity investment in the business) or where the cost represents neither a cash impact to the business, nor is it a reflection of the value received by the recipient (as is the case with share-based payment costs).

The decline in the adjusted PBIT [margin] is predominantly the result of the lower gross margin, with the full year impact of depreciation of the office fit out causing much of the remainder.

TAXATION

The Group's effective rate of corporation tax this year was 24.6% (2025: 26.8%). The reason that this is below the standard rate of corporation tax, and indeed the normal rate for the Group, is that at 31 January 2025 we prudently did not assume that the costs of the fit out of our offices in Chancery Lane would qualify for the annual investment allowance and as such enjoy 100% deduction in the year.  During the subsequent tax work it was concluded that they did qualify, thereby reducing the charge to tax in the year.  Excluding the benefit of this one-off transaction, the underlying corporation tax would have been 26%; higher than the standard rate and reflective of the level of investment which the Group makes in providing networking opportunities for our lawyers in social environments which are disallowable for corporation tax purposes.

EARNINGS PER SHARE

Basic earnings per share increased from 27.1p to 34.9p, with fully diluted EPS being 34.3p (2025: 26.6p). Adjusted basic earnings per share (calculated by making the same adjustments to earnings as have been made in calculating adjusted PBT and divided by the average shares in issue this year) increased to 37.0p (2025: 30.4p).

STATEMENT OF FINANCIAL POSITION

CASH

One of the key features of the Group's business model is its strong cash generation.  Keystone is a capital light model where the largest element of its costs, the payment of its lawyers, is on a pay when paid basis.  These characteristics are clearly demonstrated in the Group's cashflow statement.  Operating cash conversion of 98.9% (2025: 94.5%) generating cash from operations of £13.5m (2025: £11.5m), and capital expenditure returned to its usual levels of £0.1m following the one-off increase in 2025 to reflect the fit out of the offices in Chancery Lane. 

Corporation tax paid this year (£3.7m) also reflects a return to "normal" insofar as it includes four quarterly payments.  This follows the distortion to cashflow caused in 2025 as the business transitioned to meet the requirements of being classified as "super large" by HMRC.  This classification means that the business has to pay 100% of the corporation tax due within the financial year and so 2025 was a transitional year in which 6 quarterly payments were made.

The newly renegotiated interest rates on cash held have ensured a step up in interest received this year (£3.2m, 2025: £2.0m) whilst interest paid remained largely in line with the prior year.

Overall, these movements have meant that the Group generated £11.6m (2025: £7.2m) pre dividend payments.  This strong cash generation, together with the broader strength of the balance sheet underpinned the Group's ability to pay dividends in the year of £11.6m, comprising £4.7m in respect of a special dividend and £6.8m in respect of ordinary dividends (2025: £5.9m ordinary dividends).   This left closing cash of £9.7m (2025: £9.7m).

NET ASSETS

The strength of performance of the Group continues to ensure that we have an extremely strong balance sheet.  Even after a year where we have paid out £11.6m in dividends, net assets have increased from £20.4m to £20.7m.  This has been driven by strong profitability (£11.1m) and the £0.7m movement in reserves to account for the vesting of LTIP awards.

SECTION 172 COMPANIES ACT STATEMENT

The statements below address the reporting requirements of the Board under Section 172 of the Companies Act and the Companies (Miscellaneous Reporting) Regulations 2018.

The Directors of the Company have a duty to promote the success of the Company. A Director of the Company must act in the way they consider, in good faith, to promote the success of the Company for the benefit of its members, and in doing so have regard (amongst other matters) to:

•    the likely consequences of any decision in the long term;

•    the interests of the Company's employees;

•    the need to foster the Company's operations on the community and the environment;

•    the desirability of the Company to maintain a reputation for high standards of business conduct; and

•    the need to act fairly between members and the Company.

The Directors are committed to developing and maintaining a governance framework that is appropriate to the business and supports effective decision making coupled with robust oversight of risks and internal controls.

Keystone has a very clear organic growth strategy aimed to ensure delivery of long-term sustainable growth and increasing stakeholder value and all significant business decisions consider both their short and long-term impact on this strategy. Fundamental to the success of this strategy is the continued recruitment and retention of high-calibre lawyers, who join Keystone to take advantage of the many benefits that we offer and build their practice to deliver work of the highest professional standards to our clients. A key tenet of our success is the ongoing investment we make in nurturing the community and culture of the business.  This open, engaging and collegiate culture both attracts and retains lawyers whilst ensuring that all who work at Keystone feel a part of something special.

Keystone's primary asset is its people, be it the central office staff, the lawyers, the clients or third-party suppliers with whom we work (such as counsel, experts and other professionals). As a business, we dedicate substantial time, effort and resources in working to develop and maintain strong relationships from which all parties benefit. As a people business, the impact of business decisions on our principal stakeholders is always central to the decision-making process.

Law firms generally have a low environmental impact and Keystone's model further reduces this by having an extremely small office footprint and using technology across the business to facilitate our lawyers working remotely and so having no need to commute to work.

The Directors treat all members of the Group fairly and consistently, as required by both professional standards and in compliance with various pieces of legislation. We provide information to all shareholders and other third parties on an equal basis.

Below are some examples of how the Directors have had regard to the matters set out in section 172 in decisions made when discharging their duties:

Approval of annual budget

The Board has reviewed its plans for the coming year, considering the financial and operational implications these have.  These plans continue to focus on driving the continued growth of the lawyer base whilst ensuring that, through the delivery of market leading support services, we facilitate the growth and development of those lawyers who are already with the Group.  This approach is intended to deliver long-term sustainable growth which is beneficial to all stakeholders.

DIVIDEND

Reflective of the strong cash generation of the business model, recognising the strength of our balance sheet and our confidence in the future, the Board is proposing to pay a final ordinary dividend for the year ended 31 January 2026 of 17.2p per share (2025: 14.0p). This brings the total ordinary dividend for the year to 24.7p per share (2025: 20.2p per share). Subject to approval at the Annual General Meeting, the final dividend will be paid on 23 June 2026 to shareholders on the register at the close of business on 5 June 2026.

The cash value of dividends paid this year was £11.6m, comprising £4.7m in respect of a special dividend and £6.8m in respect of ordinary dividends (2025: £5.9m ordinary dividends).

Ashley Miller

Finance Director

28 April 2026

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 31 JANUARY 2026

The above results were derived from continuing operations.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 JANUARY 2026

Ashley Miller

Director

28 April 2026

Keystone Law Group Plc

Registered No. 09038082

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

YEAR ENDED 31 JANUARY 2026

CONSOLIDATED STATEMENT OF CASH FLOWS

YEAR ENDED 31 JANUARY 2026

Notes to the PRELIMINARY ANNOUNCEMENT

1. GENERAL INFORMATION 

The Company was incorporated as Keystone Law Group Limited on 13 May 2014 under the Companies Act 2006 (registration no. 09038082) and, subsequently, used as the vehicle to acquire Keystone Law Limited (the main trading company in the Group) and its subsidiaries on 17 October 2014. The Company was re-registered as a Public Limited Company limited by shares on 10 November 2017. The Company was incorporated and is domiciled in England and Wales. The principal activity of the Group is the provision of legal services.

The address of its registered office is:

48 Chancery Lane London WC2A 1JF

The preliminary announcement is presented in Pounds Sterling, being the functional currency of the companies within the Group.

2. ACCOUNTING POLICIES

BASIS OF PREPARATION

The preparation of preliminary announcement, in conformity with UK-adopted International Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies.

BASIS OF CONSOLIDATION

The consolidated financial statements incorporate the financial statements of the parent company and entities controlled by the parent company (its subsidiaries) made up to 31 January each year. Control is achieved when the parent company:

•    has the power over the investee;

•    is exposed, or has rights, to variable returns from its involvement with the investee; and

•    has the ability to use its power to affect its returns.

The parent company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

When the parent company has less than a majority of the voting rights of an investee, it considers that it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The parent company considers all relevant facts and circumstances in assessing whether or not the parent company's voting rights in an investee are sufficient to give it power, including:

•    the size of the parent company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders;

•    potential voting rights held by the parent company, other vote holders or other parties;

•    rights arising from other contractual arrangements; and

•    any additional facts and circumstances that indicate that the parent company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders' meetings.

Consolidation of a subsidiary begins when the parent company obtains control over the subsidiary and ceases when the parent company loses control of the subsidiary. Specifically, the results of subsidiaries acquired or disposed of during the year are included in profit or loss from the date the parent company gains control until the date when the parent company ceases to control the subsidiary. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with the Group's accounting policies.

All intra-Group assets and liabilities, equity, income, expenses and cash flows relating to transactions between the members of the Group are eliminated on consolidation.

Non-controlling interests in subsidiaries are identified separately from the Group's equity therein. Those interests of non-controlling shareholders that are present ownership interests entitling their holders to a proportionate share of net assets upon liquidation may initially be measured at fair value or at the non-controlling interests' proportionate share of the fair value of the acquiree's identifiable net assets. The choice of measurement is made on an acquisition-by-acquisition basis. Other non-controlling interests are initially measured at fair value.

Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests' share of subsequent changes in equity.

Profit or loss and each component of other comprehensive income are attributed to the owners of the parent company and to the non-controlling interests. Total comprehensive income of the subsidiaries is attributed to the owners of the parent company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

Changes in the Group's interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The carrying amount of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the parent company.

When the Group loses control of a subsidiary, the gain or loss on disposal recognised in profit or loss is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), less liabilities of the subsidiary and any non-controlling interests. All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as required/permitted by applicable IFRS Accounting Standards). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IFRS 9 Financial Instruments when applicable, or the cost on initial recognition of an investment in an associate or a joint venture.

BUSINESS COMBINATIONS

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interest issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value at the acquisition date.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer's previously held interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.

GOING CONCERN

The Group financial statements have been prepared on a going concern basis as the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group is cash positive, has no debt, has a model which is strongly cash generative and has, to date, a strong trading performance. The Group's forecasts and projections show that the Group has sufficient resources for both current and anticipated cash requirements for a period of at least one year from the approval of these financial statements.

ADJUSTED PROFIT BEFORE TAX ("PBT")

Adjusted PBT is utilised as a key performance indication for the Group and is calculated as follows:

The Board consider adjusted PBT and adjusted PBIT to be better measures of performance than PBT or PBIT, as the adjustments made exclude items which are either not a result of the underlying performance of the business (as is the case for the unrealised gain on the investment held at fair value or the amortisation, in the prior years, which arose from the structuring of the 2014 private equity investment in the business) or where the cost represents neither a cash impact to the business, nor is it a reflection of the value received by the recipient (as is the case with share-based payment costs).

3. OTHER AREAS OF JUDGEMENT AND ACCOUNTING ESTIMATES

In the application of the Group's accounting policies, management is required to make judgements and accounting estimates.

These estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

Whilst these do not meet the definition under IAS 1 of significant accounting estimates or critical accounting judgement, the recognition of certain material assets and liabilities is based on assumptions and/or is subject to longer-term uncertainties. The other areas of judgement and accounting estimates are set out below.

RECOVERABILITY OF TRADE RECEIVABLES (note 8)

Due to the nature of the business, there are high levels of trade receivables at the year end and, therefore, a risk that some of these balances may be irrecoverable. Because amounts due to lawyers are only payable when the Group has been paid, there is a built-in hedge to this exposure to the extent of approximately 75%. A variance of 1% in the loss ratio reflected in the impairment provision would equate to a movement in trade receivables impairment of £211,021 (2025: £172,840) which, in turn, would result in a change in the corresponding reduction in trade payables of £158,265 (2025: £129,630) and an impact to profit of £52,755 (2025: £43,210).

WORK IN PROGRESS (ACCRUED INCOME) (note 8) AND ASSOCIATED ACCRUED LIABILITY (Note 10)

During each financial year, the business carries out a review of billing activity to identify what share of each month's billing relates to a period prior to the start of that financial year. The results of these reviews are then added to the data derived from similar reviews in previous financial years and demonstrate a materially consistent performance insofar as to the share of each given month's billing which relates to a prior financial year. A fundamental judgement made when performing these reviews is that the contracts entered into each year have performance obligations with similar characteristics to those entered into in previous years; for example that the value of the services provided to the client is transferred evenly over the period of time that the services are provided. We use this data to generate a profile of the share of post year-end billing which relates to a previous financial year. This profile is then applied to the current year's budgeted billing to calculate the gross value of accrued income at the year end, a further adjustment is made to this value to reflect the expected credit loss, this adjustment is not material and as such is not separately disclosed. The accrued income valuation is then validated by reviewing the actual billing between the year end and the time the accounts are prepared (representing approximately 60% of the value of accrued income) to ensure that actual performance is in line with the expected profile.

Keystone's lawyers' fees are 100% variable and directly associated with the value of fee income produced. Accordingly, when the Group recognises a value of accrued income, it also recognises a directly associated accrued liability in respect of the fees payable to its lawyers for that work which equates to approximately 75% of the value of accrued income.

Were the actual billing to differ to the budget but all other things remained equal, then a 1% variance in billing would equate to a movement in revenue of £146,088 (2025: £79,464). This, in turn, would result in a change in the associated cost of sale of £109,566 (2025: £59,362) and an impact to profit of £36,996 (2025: £20,102).

4. EXPENSES BY NATURE

Expenses are comprised of:

Included within staff costs above are the costs of employed fee earners who are included within cost of sales (2026: £1,663,752; 2025: £1,230,192).

5. FINANCE INCOME AND COSTS

6. STAFF COSTS

The aggregate payroll costs (including Directors' remuneration but excluding share-based payment charges) were as follows:

Included within the social security costs above is an amount of £142,654 (2025: £98,652) in respect of employer's national insurance contributions, which will be payable in respect of shares granted under the Group's LTIP scheme.

The average number of persons employed by the Group (including Directors) during the year, analysed by category, was as follows:

7. EARNINGS PER SHARE

The calculations of earnings per share are based on the following profits and number of shares:

⁽¹⁾      Amounts shown are before tax.

Adjusted basic earnings per share is calculated by taking adjusted basic earnings and dividing it by undiluted average shares for the year.

8. TRADE AND OTHER RECEIVABLES

Trade receivables stated above include amounts due at the end of the reporting period for which an allowance for expected credit loss has not been recognised as the amounts are still considered recoverable and there has been no significant change in credit quality.

The provision for impairment of trade receivables (analysed below) is the expected credit loss based on the ageing of the receivable together with other specific information of which the Group is aware. For all other categories of current receivables, there is no difference between the carrying value and the expected proceeds.

The Directors consider that the carrying value of trade and other receivables approximates to fair value.

The movement in the provision for impairment of trade receivables was as follows:

Because the payment terms of the Group's lawyers is "pay when paid", the impairment of a trade receivable balance automatically generates a directly related adjustment to trade payables (being approximately 75% of the net value impaired).

Accrued income, which is stated net of an expected loss provision, has increased year on year largely in line with revenue, with accrued income days of 46 as at 31 January 2026 (2025: 48 days).

9. PROVISIONS

The dilapidation provision in respect of leased premises in Chancery Lane.

The professional indemnity provision represents the current best estimates of the amounts likely to be needed to settle claims in respect of alleged professional negligence. These are the gross value before any amount is reclaimed from insurers under the Group's professional indemnity insurance policy. These estimates are subject to a high level of uncertainty as they depend on the outcome of a range of future events and, accordingly, may need to be updated as circumstances evolve. No separate disclosure is made in relation to the detail of any such claims, as to do so would be seriously prejudicial to the position of the Group

Separately, the Group recognises expected reimbursements from professional indemnity insurance associated with this provision within trade and other receivables (note 8). The table below shows the gross and net position.

10. TRADE AND OTHER PAYABLES

Included within the above accrued expenses is the liability for lawyer fees associated with the accrued income (2026: £10,956,578; 2025: £9,595,543).

The Group's exposure to market and liquidity risks related to trade and other payables is disclosed in the financial risk management and impairment of financial assets note. The Group pays its trade payables on terms and as such trade payables are not yet due at the reporting dates.

The fair values of the financial assets are not materially different to their carrying values due to the short-term nature of the current assets. Impairment losses on trade receivables and accrued income disclosed in note 9 represent the only impairment gains or losses on financial instruments during the year.

FINANCIAL LIABILITIES

Financial liabilities are held at amortised cost. There is no significant difference between the fair value and carrying value of financial instruments.

Amounts shown as pay when paid in the tables above, principally, reflect amounts payable in respect of lawyers' fees, as well as amounts payable to third-party counsel and experts whose fees have been incurred on behalf of the Group's clients as disbursements. Lease liabilities are shown at their undiscounted value.