Gateley (Holdings)

Trading Update

RNS Number : 6939G
Gateley (Holdings) PLC
27 November 2020
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon publication of this announcement, this information is now considered to be in the public domain.

 

27 November 2020

 

GATELEY (HOLDINGS) PLC

("Gateley" or the "Group")

 

TRADING UPDATE

Resilient financial performance with activity now above pre-COVID levels

 

Gateley (AIM:GTLY), the legal and professional services group, is pleased to announce a trading update ahead of its half year results for the six months ended 31 October 2020 (the "Period"), which will be announced in January 2021.

 

The Group has demonstrated considerable resilience throughout the Period as a result of its well-diversified service lines, generating revenue of not less than £50.0m as compared with £51.8m for the prior year. We are also pleased to report that the Group's activity levels and revenue generation continue to follow an improving trend with monthly activity during September and October being in excess of the prior year comparable periods.

 

This resilient revenue performance combined with the Board's swiftly implemented cost-reduction initiatives put in place during the early stages of the COVID 19 pandemic, have combined to yield an underlying adjusted profit before tax1 of not less than £7.0m for the Period, compared with £6.6m for the prior year. The Group has significant liquidity with net cash of £9.6m at the Period end (FY20: Net debt £0.9m).

 

Following a resilient first half performance, the business has entered the second half of the financial year with a strong sense of optimism, tempered only by possible further impacts from the global pandemic and Brexit. The Board looks to the future with confidence.

 

Commenting, Rod Waldie, Chief Executive Officer of Gateley, said:

"I am delighted with the Group's operational and financial performance in the first six months of the financial year. Our loyal and dedicated staff have continued to serve our clients to the highest standard whilst working even more closely together across our Platforms to attract new work, in what has become a "new normal" trading environment.

 

"The Group is successfully leveraging its breadth of diversified service lines that are increasingly important to our clients. Our revenue pipeline continues to strengthen and this, combined with the many operational efficiencies and cost reduction measures that we have introduced in 2020, leads me to be confident that, despite the circumstances, the Group is well positioned to deliver, to all of its stakeholders, a strong performance for the financial year. "

 

1 Underlying adjusted profit before tax excludes share based payment charges, amortisation and exceptional items.

 

Enquiries:

 

Gateley (Holdings) Plc


Neil Smith, Finance Director

Tel: +44 (0) 121 234 0196

Nick Smith, Acquisitions Director and Head of Investor Relations

Tel: +44 (0) 20 7653 1665

Cara Zachariou, Head of Corporate Communications

Tel: +44 (0) 121 234 0074

Mob: +44 (0) 7703 684 946



finnCap - Nominated adviser and broker

Tel: +44 (0) 20 7220 0575

Matt Goode / James Thompson (Corporate Finance)


Andrew Burdis (ECM)




N+1 Singer - Joint broker

Tel: +44 (0) 20 7496 3000

Peter Steel (Corporate Finance)


Rachel Hayes (Corporate Broking)




Belvedere Communications Limited - Financial PR


Cat Valentine ([email protected])

Mob: +44 (0) 7715 769 078

Keeley Clarke ([email protected])

Mob: +44 (0) 7967 816 525

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
TSTKKABNCBDDQDB