‘Platform–based’ law firm Keystone is set to make its debut on AIM after raising £15mln through an oversubscribed share issue.
Keystone describes itself a challenger firm as it operates an umbrella for lawyers that work from their own offices but use its brand.
Umbrella for self-employed lawyers
Lawyers are self-employed and receive between 60-75% of fees paid but are only after Keystone has been paid.
Overheads are largely fixed and Keystone believes there is scope for operating margins to rise as business grows. The model is cash generative and the dividend policy will reflect that.
Turnover has risen by 20% annually over the past three years to £25.6mln to last January with underlying profits of [EBITDA] of £2.1mln.
Shares have been priced at 160p, valuing Keystone at £50mln, with trading to start on November 27.
It will be the third law from firm to list in London following Gateley’s in 2015 and Gordon Dadds, which listed in August.