- Gateley (Holdings)
- 15 July 2025 14:54:50
Source: Sharecast
Legal services delivered 3.9% organic revenue growth, with overall activity levels rising to 87% from 83% a year earlier.
The AIM-traded company maintained its underlying operating margin at 11.7%, supported by disciplined cost management and ongoing investment in both organic and acquisitive growth.
While underlying profit before tax edged up to £23.3m, reported profit before tax fell sharply to £6.4m from £14m, reflecting non-underlying items including acquisition-related amortisation and other adjustments.
Net assets declined to £67.5m, from £80.3m, and the group moved to a net debt position of £6.6m from net cash of £3.8m the previous year.
The final dividend was maintained at 6.2p, bringing the total payout for the year to 9.5p per share.
“2025 represents another year of revenue and underlying profit growth for Gateley, set against an unpredictable economic backdrop for much of the year,” said chief executive Rod Waldie.
“We are particularly pleased that this growth was driven by the combination of positive returns on our recent investments with an increase in activity levels and active management of cost inflation.”
Waldie added that looking ahead, the “resilience” of the company’s diversified model, its financial foundations, and its track record of revenue growth, underpinned its confidence.
“Whilst we continue to monitor and adjust in response to the unpredictable environment, the group is carrying good momentum into the current financial year.”
Operationally, Gateley said it welcomed 15 new partners or partner equivalents during the year and promoted 73 fee earners, including 16 to partner.
Fee earner productivity improved, with headcount broadly stable.
The prior year acquisition of Richard Julian and Associates performed ahead of expectations.
Looking ahead, trading in the new financial year was in line with expectations.
The board said it remained confident in delivering continued growth, supported by the firm’s £80m revolving credit facility, a resilient pipeline of acquisition opportunities, and a strategic focus on margin enhancement.
Consensus forecasts for the 2026 financial year pointed to revenue of £187.2m and underlying profit before tax of £23.6m.
At 1433 BST, shares in Gateley Holdings were down 0.75% at 132.5p.
Reporting by Josh White for Sharecast.com.
