A NewLaw business based in the UK and replicated in Australia is headed for a public listing on the London AIM exchange. 

Keystone Law is an Alternative Business Structure (ABS). Amongst other attributes of this type of entity is the ability of non-lawyers to hold equity in the business. The ABS regulatory regime has undoubtedly contributed to innovation in the UK legal services market.

Over the three years ended 31 January 2017, the business generated revenue growth of over 20% per annum and, for the year ended 31 January 2017, reported revenue of £25.6 million and EBITDA of £2.1 million.

The Keystone Law business model is to attract experienced lawyers who operate their practices with a high degree of independence while taking advantage of the branding and systems provided by Keystone. For the services it provides, Keystone receives between 25% to 40% of the revenue generated by the lawyers. The lawyers have a 100% variable “pay” structure.

The number of lawyers and the broad areas of law in which they practice have given Keystone stability and diversity in its revenue. At 31 July 2017 there were 248 lawyers operating under the Keystone business which has shown the greatest increase in lawyer numbers in the most recent years. The beginnings of Keystone were in 2002, when it was then known as Lawyers Direct. The firm re-branded as Keystone Law in 2008 and became an ABS in 2013. 

The public listing to raise £15 million has been oversubscribed. Australian investors were not eligible to participate in the listing.

The information being made public as a result of the listing and the listing itself, validates with facts and figures what we may already know, that there is a demand for different and innovative approaches for the delivery of legal services. 

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