Keystone Law has reported a 29.9% increase in revenue for the first half of 2018, in the firm's second set of financial results since it became the third UK law firm to list on the London Stock Exchange in November last year.

The firm – which reported revenue of £31.6m for the year ending 31 January 2018 – took in £19.9m during the six months to 31 July, up from £15.3m last year, alongside 40.3% growth in pre-tax profits to £2.3m.

On the back of the figures, stockbroker Panmure Gordon has upgraded its forecast for Keystone, raising its 12-month target price by 23% (68p) to 368p, citing "particularly encouraging hiring rates".

In November, Keystone floated at 160p per share, valuing it at about £50m. The firm has also paid out an interim dividend of 2.5p per share.

Firm founder and CEO James Knight said the results "give efficacy and weight to the business model as a whole", and attributed the growth to some "significant client wins" and the firm's recruitment strategy.

Between February and July, the firm brought in 42 new lawyers for a net headcount increase of 31, bringing total lawyer numbers up to 297. This included the addition of 10 senior lawyers during the summer from a range of City firms, including Ince & Co, Addleshaw Goddard, Squire Patton Boggs and Withers.

Knight told Legal Week: "More lawyers in the sweetspot of very successful careers are leaving that to join Keystone because of the benefits we offer, both financially and in terms of satisfaction and work/life balance. There is a greater focus on advising clients, rather than on being a political and bureaucratic system, which is what partner-orientated law firms are."

Keystone, which was established in 2002 and converted into an alternative business structure in 2013, began as a 'virtual' law firm, with its lawyers using technology to work from their own offices or homes. The firm then opened a string of offices across the UK as well as the Channel Islands and Australia.

"The results are a strong validation of the business, and reflect a growing acceptance of this way of working, and that it's starting to get into the legal profession. We're growing as fast as anyone else in the legal profession, excluding those growing through acquisition.

"The pool we operate in goes from startup companies through to public and bluechip. The mid-sector is a very significant area, and we have a lot of eggs in a lot of baskets, and that appeals to the stock market. When we originally floated it was very oversubscribed, but we've done well in terms of share price and have increased revenue in line with market expectations."

On the subject of Brexit, Knight remains sanguine: "The legal market takes on different shapes and forms. The majority of our clients are UK-domestic, and if it affects them, that's one thing. But I think that's a question more relevant to firms advising multinationals who may have to make some dramatic movements because of the effects of Brexit – deal or no-deal. Any business is affected.

"We're trying to deliver on what is estimated – to stick to our core function and deliver to market – but mainly its about delivering value to clients."

Finance director Ashley Miller added: "There will be lots of legal work following Brexit. We provide a full service to a large range of clients, and there will be challenges and opportunities regardless of the Brexit outcome."