Gateley (Holdings) PLC – Half-year Results

Gateley (Holdings) PLC – Half-year Results

Gateley (AIM:GTLY), the legal and professional services group, is pleased to announce its unaudited results for the six months ended 31 October 2019 (“the Period”), demonstrating a strong performance with double digit growth in profitability and revenue.

Financial Highlights

·

Revenue increased by 11.8% (10.5% organic) to £51.8m (H1 19: £46.4m)

·

Revenue derived 93.7% from legal and 6.3% from non-legal services (H1 19: 94.8%, 5.2%)

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Profit before tax increased by 10.2% to £5.5m (H1 19: £5.0m)

·

Profit after tax increased by 12.0% to £4.4m (H1 19: £3.9m)

·

Basic EPS increased by 10.11% to 3.92p (H1 19: 3.56p), underlying fully diluted EPS increased by 8.75% to 4.60p (H1 19: 4.23p) *

·

Strong cash generation from operations of £6.3m (H1 19: £4.3m)

·

Robust balance sheet, net assets increased £7.9m to £31.0m (H1 19: £23.1m) and net debt down £6m to £2.1m (H1 19: £8.2m)

·

Proposed interim dividend up 11.5% to 2.9p per share (H1 19: 2.6p)

* Underlying fully diluted EPS excludes share based payment charges, amortisation and exceptional items. It also adjusts for the future weighted average number of expected unissued shares from granted but unexercised share option schemes in issue based on a share price at the end of the financial year (note 5)

 

Operational Highlights

·

Further investment in driving organic growth with average fee earning staff increasing by 21.9% to 673 (H1 19: 552) and average total staff increasing by 15.2% to 998 (H1 19: 866)

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Total staff as at the date of this announcement of 1,038 (H1 19: 928)

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New five-year Orderly Market Agreement in place covering the period from June 2020 to June 2025

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New staff Long Term Incentive Plan (“LTIP”), replacing the previous Stock Appreciation Rights Scheme (“SARS”) and providing both long-term incentives and clarity on potential dilution

·

Two complementary acquisitions completed:

Persona Associates Limited, land referencing consultants, in July 2019

T-three Group, human capital consultants, in December 2019

·

Awarded UK Law firm of the year 2019 at the British Legal Business Awards

 

Michael Ward, CEO of Gateley, said:

 

“The Board is pleased with the Group’s first half performance, delivering another strong set of results and reflecting our broad, well-balanced service offering and our ability to both expand and invest for the long-term benefit of the Group’s stakeholders. Investment in our staff complement continues, with employee headcount now exceeding 1,000. As we grow, we continue to support our employee aspirations through both exciting career progression opportunities in an expanding business together with the delivery of meaningful shareholdings being achieved via our range of share schemes. 

 

“Exceeding our client’s expectations remains at the forefront of our service ethos and true to our culture and beliefs. We believe the Group is well placed to continue to expand. We remain confident that the business is well positioned to deliver in line with market expectations for the full year.”

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