Legal Business Blogs

‘Deals are being done’: AIM-listed Gateley’s half-year revenues soar 19% to £35.2m

AIM-listed Gateley has seen revenues jump significantly for the six months to 31 October 2016, up 19% from £29.6m to £35.2m. Gateley saw turnover improve 11% in the same period last year.

Meanwhile adjusted EBITDA in the last six months increased 11% to £5m, and profit before tax increased 45% to £4.2m from £2.9m.

The firm highlighted two successful acquisitions: Gateley Capitus in April 2016 and Gateley Hamer in September 2016 as operational highlights as well as the expansion of legal services through investment in the firm’s new Reading office.

In addition, staff numbers have increased 12.7% since October 2015 to 701.

Speaking to Legal Business, Michael Ward, chief executive of Gateley said the market was experiencing some headwinds as a result of Brexit, but that there was less effect felt outside London-centric businesses.

Ward (pictured) said: ‘We’ve seen a little bit of drop off in top-end property deals where people are relooking at them etc. But across the rest of the country we have experienced it very much as business as usual.’

‘We have had a good six months, property and corporate are doing well. Deals are being done. Commercial property development is ongoing and there has been strong performance in our residential development team.’

The results today (6 December) follow on from the firm’s impressive full year performance for 2015/16, when revenues rose by 10.2% from £60.9m to £67.1m. The balance sheet of the firm has been strengthened with gross assets of £41.6m compared to £40.7m.

At that time, 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.

In October partners at the firm made almost £6.4m from selling shares in Gateley, according to a filing with the London Stock Exchange.

Partners sold 5,761,971 shares at a sale price of £1.11 to new and existing shareholders.

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