Legal Business Blogs

AIM listing good for Gateley with revenues up 10.2% to £67.1m

AIM-listed law firm Gateley has posted a double digit increase in revenues for this financial year, with turnover up 10.2% from £60.9m to £67.1m.

In addition, adjusted EBITDA increased 13.3% to £12.8m from the pro-forma 2015 figure of £11.3m and profit before tax increased 12.2% to £11m from the pro-forma 2015 figure of £9.8m.

Cash held at the period end increased from £2.7m to £9.8m, whilst net cash flow from operating activities stood at 122% of profit after tax before one off transitional changes.

Gateley chief executive Michael Ward said the board had remained focused on the execution of long term organic and acquisitive growth.

Ward added: ‘Trading in the second half of the financial year ended 30 April 2016 was robust and we are pleased to report that trading in the first two months of the current financial year has been encouraging. We are confident that our business is well balanced and resilient and we remain focused on delivering another year of growth in our core services, whilst continuing to look for complementary acquisitions.’

In April this year, Gateley made its first acquisition since its listing in June 2015, buying tax adviser Capitus in a deal worth £2.72m – £1.59m in cash and 1.1m ordinary shares. The firm raised £30m from the listing.

According to Gateley, the acquisition of Capitus is part of a wider growth strategy for the firm which aims to selectively acquire businesses offering complementary professional and other specialist services to clients in Gateley’s target markets, providing it with an opportunity for cross selling to existing clients as well as broadening its appeal.

The business, renamed Gateley Capitus, operates as a wholly owned subsidiary and has offices in London, the Midlands, Northern Ireland and the Republic of Ireland, allowing it to serve the entire UK market, as well as providing its services to overseas projects.

Gateley also opened a new office in Reading, and made 12 new lateral partner hires since 1 May 2015.

Meanwhile last December the firm announced that it had hit its revenue targets with an 11% increase in its audited half year figures during the six month period to 31 October 2015. Turnover rose to £29.6m from £26.7m at the West-Midlands based firm which also lifted profit before tax by 11.5% to £2.9m from £2.6m.

In addition adjusted EBITDA was up 40.6% to £4.5m, from £3.2m and basic earnings per share was up 5% to 2p, from a pro-forma 1.9p in 2014, while Gateley also declared its first interim dividend of 1.895p.

Read more in: ‘Selling the family silver: Will Gateley’s listing on London’s stock exchange pay off?’