Half Year Results for the six months ended 31 October 2015

Michael-Ward

“Solid six months trading performance….”

Gateley, (AIM:GTLY), a leading national full-service commercial law firm, reports its unaudited results for the six months ended 31 October 2015, being the first six months of the business as a Plc following admission of the Group to trading on AIM on 8 June 2015. The comparative period results set out below represent the LLP’s results for the six months ended 31 October 2014 on a pro-forma basis.

Financial highlights

  • Revenue up 10.9% to £29.6m (2014: £26.7m)
  • Adjusted EBITDA* up 40.6% to £4.5m (Pro-forma 2014: £3.2m)
  • Profit before tax up 11.5% to £2.9m (Pro-forma 2014: £2.6m)
  • Basic EPS up 5% to 2.0p (Pro-forma 2014: 1.9p)
  • Initial interim dividend declared of 1.895p

* Adjusted underlying pro-forma EBITDA excludes income or expenses that relate to non-underlying items

Operational highlights

  • Successful IPO raised £30m in June 2015
  • Advised on 123 (2014: 117) corporate deals with an aggregate value in excess of £970m
  • Eight new lateral partner hires since 1st May with overall staff numbers increasing from 604 to 622 over the six month reporting period
  • Utilisation of fee generating staff at 85% (October 2014: 83%)
  • Strong balance sheet, strong cash generation and new long term bank facilities provide a robust platform for growth and a smooth transition from the previous LLP to the new Plc corporate structure

Michael Ward, CEO of Gateley, commented:

“I am delighted with the performance of the business during the six month period to 31 October 2015, a period in which we have achieved and in some cases over-achieved against the targets we set ourselves at the time of our IPO in June 2015.

The Group’s ability to deliver a strong first half performance, in an improving but challenging market, whilst at the same time transitioning the business from an LLP to a Plc not only highlights the capabilities of the senior management team but also reconfirms our strategy of using our more flexible Plc status to enhance shareholder value through organic growth and strategic acquisitions.

These results represent a very solid start to our life as a Plc and I believe will serve to further raise our profile, differentiate us from our direct competitors and attract quality staff. As such, the Board looks forward to the remainder of its first year as a Plc with confidence.”

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