Gateley share price rebounds on healthy half-year results
Revenues surge by 20% in six months to October 2018, while share price jumps 12p over 12 days
January 08, 2019 at 06:16 AM
2 minute read
The UK's first listed law firm Gateley has seen its share price bounce back from a 12-month low, on the back of solid half-year financial results.
The firm's share price fell to a 120p on 27 December, but today rose 6% on yesterday's close to hit 140p following the release of its half-year results.
In the six months to October 2018, the firm has seen revenues surge by 20.1% to £46.4m, following both acquisitive and organic growth – which the firm says accounts for half of the rise.
Earnings before interest, tax, depreciation and amortisation are up 24.8% to £6.6m, while profit after tax is up 18.0%, paving the way for a 0.4p dividend increase from 2.2p to 2.6p.
In 2015, Gateley became the first UK law firm to list, raising £30m by placing 31.6 million ordinary shares on the AIM, giving the firm a market capitalisation of £100m.
In the firm's London Stock Exchange Statement, Gateley CEO Michael Ward (pictured) said he expected his firm to remain "on track to deliver full-year earnings in line with market forecasts" and anticipates that revenues will exceed £102m.
In July 2018, the firm saw its annual revenue increase by 11% to £86.1m.
Gateley's share price has largely followed the fortunes of the AIM All-Share Index, which fell to a post-Christmas low of 842.4, only to rebound on New Year's Day.
The firm has continued to reach outside of its core legal services business with last year's acquisitions of human capital consultancy business Kiddy & Partners, as well as housebuilder specialists GCL Solicitors, seeing its fee-earning headcount grow from 457 in April 2017 to 509 in April 2018.
Gateley was the first of a series of firms to float during the past couple of years, while Gordon Dadds – now Ince Gordon Dadds – listed in 2017. Keystone Law, Rosenblatt and Knights all followed suit in 2018, and DWF is expected to be the first law firm to list on the main market in 2019.
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