Payment of earn out consideration

RNS Number : 2019M

Gateley (Holdings) PLC

13 September 2019

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon publication of this announcement, this information is now considered to be in the public domain.

Gateley (Holdings) Plc

("Gateley" or the "Company")

Payment of earn out consideration for Kiddy & Partners

Gateley (Holdings) Plc (AIM:GTLY), the legal and professional services group, is pleased to announce, in accordance with the acquisition agreement of Kiddy & Partners ("Kiddy"), that a total payment of £1,249,863 has been approved by the Board today, being the earn-out payment made in respect of the trading performance of Kiddy for the period from 1 January 2018 to 30 April 2019. As stated in our previous RNS issued on 9 July 2019, the acquisition agreement provides for further earn-out payments to be made by reference to Kiddy's trading performance for the following twelve month periods to 30 April 2020 and 30 April 2021. The aggregate maximum remaining payment outstanding under the acquisition agreement is £364,676. The earn-out consideration is split equally between cash and shares. Accordingly, 389,608 ordinary shares of 10p each in Gateley ("Ordinary Shares") have been issued and allotted and application has been made to London Stock Exchange plc for these shares to be admitted to trading on AIM ("Admission"). Admission is expected at 8.00 a.m. on 18 September 2019.

Michael Ward, CEO of Gateley, said:

"We are delighted with the excellent performance of Kiddy since its acquisition in July of last year. Kiddy broadens and strengthens our people services offering within our employment, pensions and benefits group. Results to date demonstrate clear opportunities for us to collaborate and deliver integrated advice and services to a broader set of large-scale employers across a wide range of industries. Kiddy has grown almost 37% ahead of original expectations, generating £3m of fees since acquisition. Kiddy represents our first acquisition in the exciting Human Capital sector, which when placed alongside our global mobility and Entrust pension trustee operation, moves our business further forward, offering employers a range of high class legal and consultancy services."

Total Voting Rights

The new Ordinary Shares being issued will rank pari passu with the existing Ordinary Shares in issue. Following Admission, Gateley's total issued share capital will comprise 111,344,709 Ordinary Shares. This number may be used by shareholders in Gateley as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of Gateley under the FCA's Disclosure Guidance and Transparency Rules.

Enquiries:
Gateley (Holdings) Plc
Neil Smith, Finance Director	Tel: [phone]
Nick Smith, Acquisitions Director and Head of Investor Relations	Tel: [phone]
Cara Zachariou, Head of Corporate Communications	Tel: [phone] Mob: [phone]
finnCap - Nominated adviser and broker
Matt Goode / James Thompson (Corporate Finance)	Tel: [phone]
Andrew Burdis (ECM)
N+1 Singer - Joint broker	Tel: [phone]
Richard Lindley / Peter Steel (Corporate Finance)
Rachel Hayes (Corporate Broking)
Belvedere Communications Limited - Financial PR
Cat Valentine ([e-mail])	Mob: [phone]
Keeley Clarke ([e-mail])	Mob: [phone]

 

END

 

 

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