Gateley flags resilient first-half performance

Professional services group Gateley said in a trading update on Wednesday that, despite facing a challenging market due to macroeconomic conditions, it managed a resilient performance in the half-year just ended.

The AIM-traded firm said revenue in the six months ended 31 October was ahead 7%, and was anticipated to be no less than £81.5m.

Underlying profit before tax was expected to exceed £10m, making for growth of about 4%.

Comparing the second quarter to the first, Gateley said it saw an improvement in activity levels, as trading remained aligned with the board’s expectations for the full year.

However, the board said it maintained a cautious outlook, mindful of current economic conditions.

Gateley said its financial position remained robust, with low net debt of £3.1m at the end of the first half.

That came after investments in both inorganic and organic growth opportunities aligned with its long-term strategic plan.

“Given the economic conditions during the period, I am pleased with the group’s performance in the first half and improving activity levels as the financial year progresses mean that we are carrying good momentum into the second half,” said chief executive officer Rod Waldie.

“Whilst the macroeconomic and geopolitical outlook remains uncertain, the group continues to benefit from the resilience created by our strategy of investing in a diverse and complementary range of professional services.

“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.”

At 1252 GMT, shares in Gateley Holdings were down 2.48% at 157p.

Reporting by Josh White for Sharecast.com.