Gateley posts 8% revenue growth and makes first law firm acquisition since 2015 IPO
AIM-listed firm expands into Guildford with £4m acquisition of six-partner property firm
May 21, 2018 at 08:16 AM
2 minute read
Gateley has posted revenues of £84m for 2017-18 and sealed its third and largest acquisition since its landmark initial public offering (IPO) three years ago.
The unaudited revenue figure is 8% up on last year's total of £77.6m, marking the firm's third year of revenue growth since its AIM listing in June 2015.
The firm said that trading in the second half of the financial year had remained strong, and that its performance – which it described as "in line with market expectations" – means that it could increase its returns to shareholders.
In terms of practice areas, the firm said its property and corporate arms had seen a 15% uplift in fee growth during the past 12 months.
Gateley is also continuing to push forward with its post-IPO expansion, with the £4m acquisition of six-partner Guildford property firm GCL Solicitors.
The takeover marks Gateley's first acquisition of a law firm since its listing, and comes on the back of its previous deals to acquire tax advisory business Capitus and property consultancy Hamer in 2016.
GCL, which has about 60 lawyers, posted revenues of £6m in the last financial year. It is led by managing partner Tony Inkin. Gateley will pay £4.15m for the firm, which focuses on land and property clients, consisting of £2.28m in cash and £1.87m through the issuance of 1,164,276 new ordinary shares of 10p each.
Gateley chief executive Michael Ward (pictured) said: "The acquisition will further strengthen our leading position in the residential development sector nationally and provide us with a substantial presence in the southern market, which we see as critical in developing a full-service offering."
Gateley became the first-ever UK law firm to go public when it was admitted to London's AIM market in June 2015, raising £30m.
Since then, Gordon Dadds and Keystone Law have also made the move, with Rosenblatt following suit earlier this month with a listing raising £43m.
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