Gateley completes hat-trick of double-digit growth since IPO
Gateley has completed a hat-trick of double-digit growth since its 2015 IPO, while ensuring margins have been more than maintained as the professional services group expands.
Its forecasts when it went public were based on annual growth of 7.5%. Revenues in the year to April were up 11% to £86.1m, following growth of 16% and 10% in the two previous financial years.
Pre-tax profits have increased slightly faster, up this year by 12% to £14.6m, following rises of 19% and 12%.
The Birmingham-headquartered firm has continued to grow, completing two acquisitions in the last two months – buying housebuilder specialists GCL Solicitors in May and consultancy business Kiddy & Partners in July.
Michael Ward, chief executive of Gateley, said: “We are delighted with the performance of the business this year, a year in which we have grown our revenues, increased our profit, enhanced our returns to shareholders and invested in the future through additional staff hires and two complementary acquisitions.
“As the first UK commercial law-led professional services group to be admitted to AIM, we are justifiably very proud of our team who continue to support our journey and help drive the business forward with such strong momentum.”
Gateley has also expanded its shareholder base, with the free float now at 39.9%, up from 30% when it launched.
The share price, which closed at 168p last night, has been relatively flat for the past year and is significantly above its float price of 95p.
Nigel Payne, chairman of Gateley, added: “The opportunity that Gateley pioneered by being the first UK commercial law firm to IPO three years ago has now ignited increased interest across our changing sector and several more law businesses have followed us onto the AIM market.
“As a board, we very much welcome the creation of a broader, larger sector for stakeholders to consider. As an established investment choice, I continue to remain confident that Gateley has the right strategy for the profitable growth of the group and to deliver enhanced value for all our stakeholders.”