Keystone Law Group
Website:
Keystone Law Group
Index:
AIM
EPIC: KEYS
Supersector:
Industrial Goods and Services
Sector:
Support Services
Subsector:
Business Support Services
Market Cap:
£169.06M
Payout Frequency: Semi-Annual
Keystone Law Group Dividend Analysis and Summary
Headline Dividend Details
- Final ordinary dividend: 17.2p per share (FY2025: 14.0p)
- Total ordinary DPS for FY2026: 24.7p (FY2025: 20.2p) — up ~22%
- Ex-dividend date: 04/06/2026; Record date: 05/06/2026; Payment date: 23/06/2026
- Status: Proposed, subject to AGM approval
- Recent distributions: Special dividend of £4.7m paid during the year; total dividends paid in FY2026: £11.6m (ordinary £6.8m + special £4.7m)
Coverage and Cash
- Adjusted EPS: 37.0p; ordinary payout ratio c. 67%
- Basic EPS: 34.9p; ordinary payout ratio c. 71%
- Cash generated from operations: £13.5m (conversion 98.9%); Net cash: £9.7m
- Estimated cash cost of the proposed final dividend: c. £5.4m (based on ~31.7m shares)
Policy and Track Record
- Board reiterates a progressive dividend policy
- Since IPO: c. £54m returned (~169p per share), equating to ~91% of cumulative adjusted earnings
Dividend Sustainability and Outlook
- Support from performance: Revenue +17.9% to £115.2m; adjusted PBT +20.6% to £15.3m; strong operating cash conversion and capital-light, pay-when-paid model underpin distributions.
- Coverage: Ordinary DPS covered ~1.5x by adjusted EPS, leaving headroom even after a year that also included a special dividend.
- Growth trajectory: Ordinary DPS up ~22% y/y, broadly aligned with earnings growth; management guides to FY2027 adjusted PBT ahead of current expectations, supporting continuation of a progressive policy.
- Watchpoints: Gross margin eased to 25.5% (from 26.1%) and administrative costs rose with recruitment and IT/brand investments; both bear monitoring for future coverage.
- Interest income tailwind: Net finance income rose to £2.4m (from £1.1m). If rates decline, this boost may fade, modestly tightening earnings/dividend cover.
Structural/Strategic Considerations
- No demergers, M&A, buybacks, or share structure changes disclosed.
- Ongoing investment in IT/AI and brand refresh; capex remains low, supportive of free cash flow and dividend capacity.
Risks and Flags
- Receivables/accrued income inherent to the model; mitigated by pay-when-paid (c. 75% natural hedge), but monitor accrued income days 46 and receivables days 35.
- Professional indemnity provision increased to £1.09m (net ~£0.55m after insurance) — contained but a sectoral risk.
- Recruitment-driven growth must continue to sustain revenue momentum.
- Potential normalization of interest income as rates evolve could reduce EPS cover at the margin.
Read more
Keystone Law Group Annual Dividend Yield - 6.82%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 12/06/2025 |
08/07/2025 |
Special |
15.00p |
GBX |
| 12/06/2025 |
08/07/2025 |
Final |
14.00p |
GBX |
| 02/10/2025 |
24/10/2025 |
Interim |
7.50p |
GBX |
Total (Annual Dividends Per Share):
36.50p
Dividend Yield =
Annual Dividends Per Share (36.50p)
÷ Share Price (535p)
= 6.82%
Keystone Law Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 04/06/2026 |
23/06/2026 |
Final |
17.2000p |
GBX |
| 02/10/2025 |
24/10/2025 |
Interim |
7.50p |
GBX |
| 12/06/2025 |
08/07/2025 |
Special |
15.00p |
GBX |
| 12/06/2025 |
08/07/2025 |
Final |
14.00p |
GBX |
| 19/09/2024 |
11/10/2024 |
Interim |
6.20p |
GBX |
| 13/06/2024 |
21/06/2024 |
Final |
12.50p |
GBX |
| 21/09/2023 |
13/10/2023 |
Interim |
5.80p |
GBX |
| 21/09/2023 |
13/10/2023 |
Special |
12.50p |
GBX |
| 15/06/2023 |
07/07/2023 |
Final |
10.90p |
GBX |
| 22/09/2022 |
14/10/2022 |
Interim |
5.20p |
GBX |
| 16/06/2022 |
08/07/2022 |
Special |
10.0p |
GBX |
| 16/06/2022 |
08/07/2022 |
Final |
11.20p |
GBX |
| 23/09/2021 |
15/10/2021 |
Interim |
4.50p |
GBX |
| 10/06/2021 |
09/07/2021 |
Final |
10.60p |
GBX |
| 24/09/2020 |
16/10/2020 |
1st Interim |
3.30p |
GBX |
| 24/09/2020 |
16/10/2020 |
2nd Interim |
3.30p |
GBX |
| 03/10/2019 |
25/10/2019 |
Interim |
3.20p |
GBX |
| 03/10/2019 |
25/10/2019 |
Special |
8.00p |
GBX |
| 13/06/2019 |
12/07/2019 |
Final |
6.50p |
GBX |
| 04/10/2018 |
26/10/2018 |
Interim |
2.50p |
GBX |
| 14/06/2018 |
02/07/2018 |
Final |
0.84p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2023 |
5.800 |
10.900 |
12.500 |
GBX |
29.200 |
10.600 |
| 2022 |
5.200 |
11.200 |
10.000 |
GBX |
26.400 |
74.830 |
| 2021 |
4.500 |
10.600 |
|
GBX |
15.100 |
128.780 |
| 2020 |
|
|
|
GBX |
6.600 |
-62.710 |
| 2019 |
3.200 |
6.500 |
8.000 |
GBX |
17.700 |
429.940 |
| 2018 |
2.500 |
0.840 |
|
GBX |
3.340 |
|
Keystone Law Group Dividend Calculator
Keystone Law Group Dividend Growth
| Dividend Growth (1Y) |
-29.83%
|
| Dividend CAGR (5Y) |
7.51%
|
| Years of Growth |
1
|
| Payout Ratio |
104.67%
|
| Buyback Yield |
-0.57%
|
| Shareholder Yield |
4.03%
|
| P/E Ratio (TTM) | 15.66 |
|---|
| Forward P/E | 14.99 |
|---|
| P/FCF | 18.94 |
|---|
| Earnings Yield | 6.54% |
|---|
| FCF Yield | 5.28% |
|---|
| ROE | 53.87% |
|---|
| ROCE | 52.27% |
|---|
| Profit Margin | 9.5% |
|---|
| Operating Margin | 10.37% |
|---|
| Gross Margin | 26.29% |
|---|