Keystone Law saw turnover increase by 9 per cent to reach £10.7m. The firm’s unusual model appears to be attractive to clients. Rather than having several offices for its 100 lawyers it employs 13 support staff in a single office, while fee-earners work flexibly from home. The solicitors are paid on a merit basis and the firm has only two partners in managing partner James Knight and William Robins, who focuses on client relationships.
Despite having relatively low costs, Keystone’s margins are also fairly low. Knight estimates that the firm’s gross margin is 27 per cent and its net profit margin just 12 per cent.
Corporate and commercial work contributes the highest portion of Keystone’s revenue at 46 per cent, although areas such as property are growing. In the next year the firm plans to introduce sector groups focused on healthcare, financial services and retail.