Gateley takes a profit hit to pay £4.5m in bonuses

Gateley has seen profits drop after reinstating its employee bonuses this year of £4.5m.

The professional services group did not make a provision for staff bonuses in 2023 with Chairman Nigel Payne saying “for a business such as ours, where staff retention and incentivisation are important considerations, this was not ideal”.

Underlying profit before tax has dropped by 8.1% to £23m following the move, whilst revenue has boosted by 6% to £172.5m, extending Gateley’s unbroken record of revenue growth since the IPO in 2015.

Rod Waldie, CEO of Gateley, said: “I am pleased with our FY24 outturn given our cautious view of market conditions during the Period, particularly around the turn of the calendar year in H2. Our people have worked hard to deliver another year of growth via our increasingly diverse and resilient business model, combining complementary legal and consultancy services.

“Looking forward, we are encouraged by strengthening transactional activity levels, which began in Q4 FY24. Our immediate outlook is best characterised as cautiously optimistic. Our resilient and financially robust foundation, allied to our unbroken track-record of growth, underpins our confidence to continue our long-term strategy of investment in people and systems. This strategy has worked well for us since IPO in 2015 and through disciplined application of it, we ensure that the Group remains well-positioned for further growth and enhanced returns for all stakeholders.”