Profits break £10m in Gateley’s first post-IPO results

LAW firm Gateley has reported a “strong” performance in its maiden year as a public company.
The Birmingham-based firm raised £30m through its IPO last June, when it became the first law firm to go public.
Since then it has completed its first acquisition, of Gateley Capitus, and opened an office in Reading.
The firm increased turnover by 10% to £67.1m in the year to April, with pre-tax profits up 12% to £11.0m.
“The financials are very strong – 10% revenue growth, 13% EBITDA growth,” said Gateley chief executive Mike Ward.
“At IPO all of our numbers were based on 7.5% growth per annum, we are still comfortable with that.”
It said the proposed dividend of 5.6p is in line with its strategy of distributing 70% of its post-tax profits.
Cantor Fitzgerald said the firm is “well positioned to continue to grow both organically as well as through acquisitions” and reiterated its “buy” rating, with a target of 125p. Shares closed last night at 102p having reached a high of 110p last month.
Mr Ward added: “In a market that continues to be challenging the board has remained focused on the execution of our stated strategy of long term organic and acquisitive growth.
 
“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.”

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