London-listed Keystone Law (AIM: KEYS)   said it has seen “another strong year” after final results showed revenues to have surged 16.3% for the year ended 31 January 2020. 

The growing challenger law firm reported a strong revenue increase of 16.3% to £49.6 million from £42.7 million in the same 2019 period. 

Keystone highlighted that it was in “a strong financial position” to face challenges posed as a result of the pandemic with a strong cash conversion of 81% with cash maintained at £4.9m.  

The group noted that profit before tax had come to £5.2 million for the period, representing growth of 10.1% compared to its 2019 PBT. 

As a result, basic earnings per share was up 9% at 13.3p from 12.2p whilst adjusted net income per share increased 11.9% to 15p from 13.4p in the previous year. 

Shares in Keystone Law were trading -3.35% lower at 432.5p during Tuesday morning. 

The company said it had been ‘substantially unaffected’ by the UK government’s restrictions due to its business model which is designed to service clients remotely online. 

“It was a very small step to move our central support services onto the same footing, '' said Chief Executive, James Knight, “achieving this with no adverse effects to service delivery.” 

It did, however, note a ‘meaningful decline’ in the number of new instructions since the start of the pandemic but said it could not assess the impact of the outbreak on its current year. 

The group said it believes the most likely outcome for the current year will still see it being profitable and cash generative and noted that the year so far was in line with expectations. 

“We are in a strong financial position, both in terms of liquidity, being debt free and having over £4.4 million of cash,” said Knight, “and in terms of the high proportion of our cost base which is fully variable and on a paid when paid basis." 

Keystone added that it will maintain its decision against recommending a final dividend payment to shareholders in order to ‘protect the liquidity of the business.’  

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