Trading Update

RNS Number : 6506O

Gateley (Holdings) PLC

21 May 2018

 

Gateley (Holdings) Plc 

('Gateley', the 'Company' or the 'Group')

Trading Update

"Another year of strong business momentum"

Gateley (AIM:GTLY), the national commercial law and complementary professional services group, is pleased to announce an update on trading ahead of its audited results for the financial year ended 30 April 2018.

Trading in the second half of the financial year has remained strong and the Group performance for the full year is in line with market expectations. The Board is delighted with revenue and profit growth in the year which has enabled the Group to not only increase its returns to shareholders, but also to further invest in the business. Subject to audit, revenue for the financial year ended 30 April 2018 will be not less than £84 million (2017: £77.6 million) and adjusted EBITDA* is expected to be not less than £16 million (2017: £14.9 million).

The Group has recorded growth across all of its segmental reporting lines, reflecting Gateley's strength in depth and the benefits of years of focussed investment. Another year of measured investment over the past twelve months has resulted in the Group's Property and Corporate businesses each recording not less than 15% fee growth. As we seek further expansion opportunities through complementary professional services, our clients are benefitting from the increased breadth, depth and scale of our expert advice. Our staff numbers continue to grow as we invest in people, to support the further expansion of professional services across our national offering.

The integration of our two already acquired complementary businesses has progressed well and we are delighted with today's announcement of the exchange of contracts in advance of the strategic acquisition of the trade and assets of GCL Solicitors LLP which brings further service benefits to our clients and cross selling opportunities to both our legal and complementary services. 

The Board expects to recommend a final dividend in line with its stated dividend policy of distributing up to 70% of its after-tax profits. The Group's audited results for the year ended 30 April 2018 will be announced on 17 July 2018.

Michael Ward, Chief Executive Officer of Gateley, commented:

"I am delighted with the strong performance of the business this year and the growth we have achieved in both fees and profitability. The Board recognises how hard our teams have worked again this year and wishes to thank everyone involved in Gateley's continued success.

"Following another year of strong momentum, and as separately announced today, I am delighted with the imminent opening of a new Gateley office in Guildford after exchanging contracts to acquire the business and assets of GCL Solicitors LLP. This strategic acquisition brings additional national reach and augments our already strong position in the Housing sector.  Yielding immediate benefit to our mutual clients, the acquired business will link well with our Reading and London offices and we are excited about the benefits this will bring to all of our stakeholders."

* Adjusted EBITDA represents earnings before interest, taxation, income or expenses that relate to non-underlying items, depreciation, amortisation, impairment and non-cash charges relating to share-based payments.

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 Communications	Tel: [phone] or [phone]
Cantor Fitzgerald Europe - Nominated adviser and broker
David Foreman, Marc Milmo, Michael Boot (Corporate Finance)	Tel: [phone]
Caspar Shand Kydd, Alex Pollen (Sales)
Arden Partners - Broker
John Llewellyn-Lloyd, Benjamin Cryer (Corporate Finance)	Tel: [phone]
James Reed-Daunter (Corporate Broking)
IFC Advisory - Financial PR Adviser
Tim Metcalfe, Miles Nolan	Tel: [phone]

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.

 

END

 

 

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