Keystone CEO James Knight

AIM-listed law firm Keystone Law has posted a more than 35% increase in revenues in its first full-year financial results since it floated last year.

The firm's top line rose from £31.6 million to £42.7 million, while its pre-tax profit rise from £3.3 million to £5.1 million. In July it will deliver a full-year dividend of 9p per share to its investors.

CEO James Knight ruled out any acquisitions in the foreseeable future, but said that recruitment "of high-calibre lawyers" will continue to be pivotal in the firm's growth strategy. The firm now counts 321 fee-earners among its employees. Key recent hires include Alexander Carter-Silk from Brown Rudnick, and McDermott Will & Emery partner pair Alicia Videon and Andrew Watson.

Knight said Keystone has been able to expand "without the need for additional capital". He added: "The first year has been interesting, and the challenges have been positive, in as much as it requires a different mindset – for example, reporting to investors twice a year.

"We've found anecdotally that the awareness of the firm resulting from the IPO has been helpful," he said, adding that the firm has been able to attract more sophisticated lawyers and clients as a result of the float.

"There has been far more interest in the sector due to publicly listed law firms. One tries not to call it a marketing strategy, but that would be a fair comment," said Knight.

"Larger commercial clients may have had some hesitation before – but it is much less so if they engage with a publicly listed firm, as there is deemed to be greater scrutiny and reliability. It's a very transparent structure," he added.