Gateley Holdings Plc (LON:GTLY), the national commercial law and complementary professional services group, has today announced 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.
