Future acquisitions likely as Gateley outlines its flotation plans
BIRMINGHAM-headquartered law firm Gateley has confirmed its intention to float on the Alternative Investment Market (AIM) and said going public is the best way to fulfil its growth plans.
The firm, which has a number of offices including Manchester, Leeds and London, today officially announced its intention to launch an initial public offering (IPO) and application for admission of its ordinary shares to trading on AIM.
Cantor Fitzgerald Europe is acting as financial adviser, nominated adviser and broker to Gateley which will become the first law firm to list on the stock market.
Based on research carried out by Cantor Fitzgerald, Gateley expects market capitalisation to be £133m-£143m.
Michael Ward, chief executive officer of the law firm, said: “Gateley is a successful, fast growing and entrepreneurial legal services group which operates in a rapidly changing marketplace.
“We believe the catalysts for value creation are now to acquire, incentivise, differentiate and where sensible diversify. These opportunities for growth will undoubtedly be most accessible as a PLC and we want to be the first to be able to take advantage of them.
“Our growth and reputation over the last ten years has been driven by the quality of our people and the level of service we offer to clients. Our future as a PLC will help ensure these crucial strengths remain at the core of our development.”
Gateley has more than 380 fee earners across six offices in England and an office in Dubai. It has more than 4,000 corporate and 1,500 private clients.
Its specialist areas include banking and financial services, corporate, business services, employment and pensions and property.
Over the last ten years Gateley has grown its revenue by a compound annual growth rate of 14.3% and operating profit by 14.8%. For the six months to 31 October 2014, Gateley reported revenues of £26.7m (H1 2014: £23.1m) and adjusted profit before tax of £2.6m (H1 2014: £1m).
In 2014 Gateley adopted an Alternative Business Structure (ABS) allowing non-lawyers to own and invest in law firms.
The firm suggests the combination of the ABS and the transition from an LLP to a PLC will give it “first mover advantage” and provide a platform to expand and diversify the business.
This is likely to mean selective acquisitions – including businesses offering complementary professional and other business services – and lateral hires of individuals or teams.
