(Alliance News) - Gateley Holdings PLC on Wednesday said it saw a strong first half of its financial year, and is on track to meet market expectations.
The Birmingham-based legal and professional services group reported GBP62.3 million in revenue in its first six months ended October 31, 2021. This marks a 24% increase year-on-year from GBP50.5 million.
Underlying operating pretax profit came in at GBP9.0 million, up 11% from GBP8.1 million the same period a year before.
Trading margins are above pre-pandemic levels at 13.7% in the first half, from 13.3% a year prior, and 13.2% the year before that. This is in part thanks to lower operating costs than before the pandemic hit.
Gateley declared an interim dividend of 3.0 pence per share, a 20% increase from the first half of previous year.
During the period, Gateley continued its mergers and acquisitions strategy, after a pause during the pandemic. It acquired quantity surveyor Tozer Gallagher LLP in a GBP815,000 deal, and intellectual property law firm Adamson Jones Holding Ltd for GBP2.5 million to enhance its property platform and business services platform, respectively.
It reported a like-for-like growth in excess of 20% for all of its platforms.
The company's share price rose 4.2% to 226.60 during midday trading on Tuesday.
"Our balance sheet remains strong, and we are committed to investing in our Platform strategy, to seize attractive growth opportunities. Our post-period end acquisition of Adamson Jones is very recent evidence of this. Our acquisition pipeline is strong, and we are actively engaging with opportunities for further growth across each of the Platforms" said Chief Executive Officer Rod Waldie.
"Current levels of activity are expected to continue throughout H2 22. We are therefore well positioned to deliver market expectations for the full year."
By Elizabeth Winter; elizabethwinter@alliancenews.com
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Gateley Holdings (GTLY)