Gateley Reports Strong Revenue Growth in Unaudited FY22 Results

Gateley (GTLY Follow | GTLY), a legal and professional services firm, today announced strong unaudited results for FY22 ahead of its audited results announcement in September.

Balance sheet:

The company recorded solid growth across its balance sheet. Compared to FY21, revenue increased 13% to £137m, profit before tax increased 10% to £18m, adjusted weighted average EPS increased 7% to 14 .10 pence and net assets increased by 18% to £70 million. Gateley also proposed a final ordinary dividend of 5.5 pence, bringing the total dividend to 8.5 pence from 7.5 pence the previous year.

Strong performance for equities and UK M&A boosted Gateley‘s Corporate Platform 18% in FY21. Its real estate platform grew by 15% and its People platform by 40%. The business services platform fell 10% due to a number of stalled litigation projects and the timing of the report, but is expected to recover in FY23.

Strategy:

To further increase revenue and improve core platforms, Gateley acquired three entities: Tozer Gallagher in July 2021, Adamson Jones in January 2022 and Smithers Purslow in April 2022. These acquisitions added 150 employees to the company, with annual consultancy fees now totaling £32 million. Apart from these acquisitions, the workforce increased by 100 people with the resumption of post-pandemic recruitment. Otherwise, Gateley secured a new £30m revolving credit facility in April 2022 to support its expansion.

The company postponed its audited report until September to implement a new financial accounting system, which is expected to go live later this month.

Stock chart | GTLY

Ron Waldie, CEO, commented:

“We delivered another year of strong revenue and profit growth and I am delighted with our overall performance. Our successful return to recruiting delivered strong organic revenue growth of over 10%, which, combined with the achievement of three exciting acquisitions, generates annualized advisory revenues of over £32 million.

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