Michael Ward, CEO of Gateley, said:
“I am delighted with the performance of the business in the first half of the financial year. Our proven strong and resilient business model and our focused diversification strategy has continued to drive growth across our business: our core legal business has grown strongly; our acquired complementary businesses are all fully integrated and are performing very well; our acquisition pipeline is strong with regular approaches from companies who view Gateley as an ideal choice to help them grow their businesses successfully.
The Group now operates from ten offices with a team now comprising over 900 people, who support the mid-market with all of its legal and other professional service requirements. Since our admission to AIM three and a half years ago, our core legal team has grown by 47% from 384 to 565. We have also expanded our non-legal service lines such that our legal team now works alongside 38 other professionals including chartered surveyors, tax consultants, clinical psychologists and chartered accountants. We remain committed to our strategy of investing in the business and its people and expanding the Group’s offering, whilst maintaining our focus on sustainable improving performance.
In the first three years post Admission to AIM, the Group has delivered turnover growth of 37%, adjusted EBITDA growth of 46% and, including the dividend from this set of results, has provided shareholders with dividend income of 21.84 pence per share. The Group is on track to deliver full year earnings in line with market forecasts, which were raised following the positive Trading Update announced on 23 November 2018, with revenues of not less than £102m and EBITDA margins in H2 19 not less than those achieved previously.
With our strong trading and investment for the future both continuing, the Board looks forward to the second half of the financial year with confidence.”
Gateley Holdings plc (LON: GTLY), the law-led professional services group, has today announced its unaudited results for the six months ended 31 October 2018.
Financial Highlights
• Revenue up 20.1% to £46.4m (H1 18: £38.6m), 10.2% from organic growth
• Adjusted EBITDA* up 24.8% to £6.6m (H1 18: £5.3m)
• Profit before tax up 18.6% to £5.0m (H1 18: £4.2m)
• Robust balance sheet with net assets up 40.8% to £23.1m (H1 18: £16.4m), with net debt increased to £8.2m (H1 18: £7.1m)
• Strong cash generation** as cash conversion up 2.5ppts to 87.4% (H1 18: 85.3%)
• Basic EPS up 13.5% to 3.52p (H1 18: 3.10p)
• Profit after tax up 18.0%, supporting increase in interim dividend of 18.2% to 2.6p per ordinary share (H1 18: 2.2p)
Operational Highlights
• Strong performance across the business demonstrating the success of our strategy, the strength and sustainability of our business model and further enhancing Gateley’s reputation for delivering growth from its established, resilient and progressive business
• Double-digit growth across all financial indicators driven by the Group’s on-going investment in people and delivered across its expanded client base, its broader service offering and its wider geographical base
• Successful acquisition and integration of GCL Solicitors and Kiddy & Partners expands the Group to sixteen legal and five non-legal business lines
• Total headcount up by 17.3% from 30 April 2018 to 928 (FY 18: 791), including eight new lateral legal partner hires and seven internal promotions to partner, proving the appeal of the Group’s offering to internal and external candidates
* Adjusted EBITDA excludes income or expenses that relate to non-underlying items and non-cash charges relating to share-based payments
** Cash conversion (Operating cash flow / Adjusted EBITDA)
