Gateley (GTLY ), a legal and professional services company, has announced strong unaudited FY22 results today ahead of its audited results announcement in September.
Balance Sheet:
The Company reported solid growth across its balance sheet. Compared to FY21, revenue increased 13% to £137m, profit before tax was up 10% to £18m, adjusted weighted average EPS was up 7% to 14.10p, and net assets up 18% to £70m. Gateley also proposed a final ordinary dividend of 5.5p, taking the total dividend to 8.5p compared to 7.5p the previous year.
A strong showing for equities and M&A in the UK boosted Gateley's Corporate Platform 18% in FY21. Its Property Platform grew 15% and its People Platform grew 40%. The Business Services Platform contracted 10% due to a number of stalled litigation projects and the timing of the report, but is expected to recover in FY23.
Strategy:
To further boost earnings and enhance its core platforms, Gateley acquired three entities: Tozer Gallagher in July 2021, Adamson Jones in January 2022 and Smithers Purslow in April 2022. These acquisitions added 150 employees to the Company, with annual consultancy fees now totaling £32m. Outside these acquisitions, headcount increased by 100 as post-pandemic recruitment picked up. Furthermore, Gateley gained a new revolving credit facility of £30m in April 2022 to support its expansion.
The Company has delayed its audited report until September in order to implement a new financial accounting system, expected to go online later this month.
Ron Waldie, CEO, commented:
"We have delivered another year of strong revenue and profit growth and I am delighted with our overall performance. Our successful return to recruitment generated strong organic revenue growth of over 10%, which, allied to the completion of three exciting acquisitions, is delivering annualised consultancy revenue of over c.£32m."
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