H1 25 Trading update and notice of results

Gateley (AIM: GTLY), the professional services group, is pleased to announce a trading update ahead of its half year results for the six months ended 31 October 2024 (the "Period" or "H1 25"), which will be announced on 15 January 2025.

The Group's increasingly diverse business lines combined to deliver a strong performance in the Period. Group revenue grew by c.5.0% and is expected to be not less than £86.0m (FY24: £82.0m).

Underlying profit before tax* is expected to be not less than £10.5m (H1 24: £10.0m), representing growth of c.5.0%.

The Group has strengthened its balance sheet further including net cash at the Period end of £1.2m (H1 24 - net debt £2.2m).

Activity levels increased throughout H1, particularly in transactional services in Q2. Fee earner utilisation remains ahead of the prior year as we head into H2. Taken alongside the benefits now being seen from our organic investments, the outlook for the remainder of the year is encouraging and the Group expects to perform in-line with market expectations1.

In line with all businesses in the UK, the changes to National Insurance contributions announced in the autumn budget will impact the Group's costs, by c£1.8m in FY26. The Group is well positioned to mitigate these costs through pricing and efficiencies in its ongoing drive for longer term margin enhancement.

1 Based on current published equity research, the Board understands market consensus for the year ending 30 April 2025 to be for revenue of £184m and underlying profit before tax of £24.1m.

Commenting, Rod Waldie, Chief Executive Officer of Gateley, said:

"I am pleased with the Group's performance in H1 25 and the ongoing improvement in activity levels as the financial year progresses, which means that we have good momentum into H2.

"The Group continues to benefit from the resilience created by our strategy of investing in a diverse and complementary range of professional services. We are pleased that our more recent organic investments are beginning to generate positive returns alongside the strong performance from our recently acquired businesses. Our balance sheet provides a strong foundation from which to take a long-term view of potential opportunities to further invest in both legal and consultancy services.

"Finally, as always, I would like to thank our clients for their support and our dedicated people for their ongoing hard work, commitment and can-do attitude."