Gateley revenues and profits grow in H2

Legal and professional services group Gateley said on Wednesday that it had entered the second half of the year with high activity levels, strong trading momentum, and a sense of "optimism and confidence" despite uncertainties stemming from the ongoing Covid-19 pandemic.

Gateley said trading continued to improve throughout the second half of its 2021 trading year, resulting in the group generating second-half revenues of at least £69.5m, an increase of more than 20% year-on-year.

Full-year revenue was pegged to be no less than £120.0m, an increase of more than 9.3% for the year as a whole, while annual pre-tax profits were anticipated to be up at least 8.1% at £16.0m.

The AIM-listed group stated that "prudent cost and cash management measures" initiated at the start of the pandemic had been augmented by the stronger than anticipated second-half trading, yielding a net cash position of £20.0m at the end of April, significantly ahead of previous expectations.

Gateley also highlighted that it would recommence dividend payments, with a final payment to be proposed on 13 July. It also declared an interim dividend of 2.5p per share.

Chief executive Rod Waldie said: "I am delighted with this excellent performance, which is testament to our culture and the contribution of everyone working at Gateley.

"This has been a turbulent year for all of our stakeholders but our diverse and highly regarded legal and consultancy offering has enabled us to continue to provide excellent service to our clients whilst growing our business. We are carrying a strong pipeline of work into FY22 and are looking forward to continuing to grow the group, both organically and via acquisition."

As of 1015 BST, Gateley shares were up 0.90% at 200.80p.