Gateley (AIM: GTLY), the legal and professional services group, is pleased to announce a trading update ahead of its half year results for the six months ended 31 October 2021 (the "Period"), which will be announced on 12 January 2022.
The Board is delighted with the strong performance of the Group in the Period, both in terms of activity levels and fee generation, which were in line with management's expectations. Revenue for the Period has grown by 23% and is expected to be not less than £62.0m.
Momentum built during the strong second six months of FY21 has continued throughout the Period, further vindicating the Group's decision in 2020 to retain capacity during the onset of the pandemic. Gateley continues to benefit from lower-than-normal levels of discretionary expenditure which is expected to last at least through the remainder of the financial year. Underlying adjusted profit before tax* is not less than £8.1m for the Period, compared with £7.5m for the prior Period. Cash generation during the Period has remained strong after reintroducing dividends to shareholders and bonus payments to staff, net cash was £7.8m at the Period end.
The Board looks forward to the second half of the financial year with confidence.
*Underlying adjusted profit before tax excludes share-based payment charges, amortisation and exceptional items
Commenting, Rod Waldie, Chief Executive Officer of Gateley, said:
"Our long-established and resilient business model, enhanced by an increasing range of connected services offered to clients via our Platforms, and our embedded 'one-team' culture have been the driving force behind another strong financial performance from Gateley. On behalf of the Board, I thank our incredible people for their ongoing hard work, commitment and can-do attitude.
"We are excited by the wide range of opportunities that are presenting themselves to the Group and look forward to continuing to grow the business, both organically and via acquisition, in line with our stated strategy."