Listed Firm Slashes Pay By 20% Despite Revenue Growth Prediction
The firm has also redeployed staff from less active areas of the business to help with increased workloads elsewhere.
May 26, 2020 at 06:00 AM
2 minute read
The firm's share price fell from an all-time high of 222p to 115p before recovering.
U.K. listed law firm Gateley has introduced a firmwide 'salary sacrifice' as part of its latest financial measures to combat the coronavirus pandemic.
The firm has cut all salaries by 20% for May and June, with the firm reviewing action for beyond that time, according to a spokesperson.
The firm added that salary cuts have not been combined with a reduction in working hours as it is a "temporary measure".
The firm also added that some staff working in quieter transactional practices had been redeployed in the group to help with increased workloads elsewhere. In addition, it has negotiated an increase and extension to its working capital facilities of up to £20 million.
Despite the cost saving measures, the firm still predicts an uptick in revenue of at least 4% for the financial year, according to a trading update issued on the London Stock Exchange.
Previously, the firm decided to furlough staff and cancel its interim dividend payout.
Since the start of the pandemic, Gateley's share price has fallen from its all-time high of 222 pence per share to a 3-year low of 115 before recovering to its current level of 154.
Elsewhere, fellow listed firm Rosenblatt, trading under RBG Holdings, announced it would pay out an interim dividend of 1 pence per share. The firm had previously been expected to pay out 3 pence per share prior to the coronavirus pandemic.
Other listed law firms including Ince, Knights Group and Keystone Law have all decided to cancel their dividend payouts as a result of the pandemic.
Read More
Gateley Cancels Shareholder Payouts in Hedge Against COVID-19 Fallout
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