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Gateley (Holdings) (GTLY)

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Tuesday 15 September, 2015

Gateley (Holdings)

Full Year Results for the year ended 30 April 2015

RNS Number : 0254Z
Gateley (Holdings) PLC
15 September 2015
 

For Immediate Release

15 September 2015

 

Gateley (Holdings) Plc

("Gateley" or the "Group")

 

Full Year Results for the year ended 30 April 2015

 

Gateley, (AIM:GTLY), a leading national full-service commercial law firm, reports its results for the year ended 30 April 2015, being the final year of the business as an LLP and prior to admission of the Group to trading on AIM on 8 June 2015. The results set out below represent the pro-forma Plc results for the year ended 30 April 2015 based upon the audited results of the LLP for the same period.

 

Financial highlights

·      Revenue up 11.5% to £60.9m (2014: £54.6m)

·      Adjusted pro-forma EBITDA* up 28.4% to £11.3m (2014: £8.8m)

·      Adjusted pro-forma pre-tax profit up 32.4% to £9.8m (2014: £7.4m)  

·      Pro-forma basic EPS up 37% to 7.4p (2014: 5.4p)

·      Pro-forma total dividend yield up 35% to 5.4% (2014: 4%)

* Adjusted pro-forma EBITDA excludes income or expenses that relate to non-underlying items

 

Operational highlights

·      Advised on more than 250 corporate deals with an aggregate value in excess of £1.5bn

·      Fee generating staff increased to 366 from 355

·      Utilisation of fee generating staff at 85% (2014: 84%)

·      Successful IPO raised £30m in June 2015

 

 

Nigel Payne, Chairman of Gateley, commented:

 

"In an evolving and still challenging legal marketplace the Group has delivered a pleasing set of results for the year ended 30 April 2015 which provide a solid platform for the business as we embark upon delivering on our goals and objectives as a Plc.

 

The Board is focused on ensuring that Gateley is ideally positioned to maximise the opportunities from the changing marketplace in which we operate as well as from our new and more flexible Plc status. The growth strategy of the Group is based on three key pillars, which we outlined to investors at the time of the IPO. These are to, Differentiate (through our Plc status, comprehensive service offering and service ethic), where sensible Diversify (through additional complementary non-legal businesses and acquiring legal firms or teams offering sector specialism or geographic expansion), and, very importantly, Incentivise (offering wider and earlier equity to staff.)

 

These results, together with the successful IPO and the solid start the business has made in its journey from LLP to Plc has without doubt helped raise our profile, differentiate us from our direct competitors and attract quality staff who are interested in benefiting from the opportunities provided by a structure which is far better suited to the legal landscape of today in what is an improving but nonetheless still challenging market. As such, the Board looks forward to its first year as a Plc with confidence."

 

 

Michael Ward, CEO of Gateley, commented:

"I'm delighted to present our final year results for Gateley prior to the business becoming a listed company. Gateley's performance in the year ended April 2015 and its admission to AIM in June 2015 has created a solid foundation from which to build the business and strengthens our ability to execute our longer term growth strategy.

It would be remiss of me not to thank all the management and staff at Gateley for their continued support and commitment, particularly during a period of considerable change. It is testament to the quality of our people that the financial results for last year are as good as they are."

Enquiries:

 

Gateley (Holdings) Plc

 

Nick Smith, Acquisitions Director and Head of Investor Relations

+44 207 653 1665

Cara Zachariou, Head of Communications

+44 121 234 0074 or

+44 7703 684 946

 

 

Cantor Fitzgerald Europe - Nominated adviser and broker

+44 207 894 7000

David Foreman, Michael Reynolds (Corporate Finance)

 

David Banks, Tessa Sillars (Corporate Broking)

 

 

 

Buchanan - Financial PR adviser

+44 207 466 5000

Mark Edwards

Helen Chan

[email protected]

 

Jane Glover

 

 

 

 

CEO Business Overview

 

Introduction

 

For our final year as a partnership I am pleased to report a good financial performance in an improving but nonetheless challenging marketplace with increases against last year in both revenue (11.5%) and adjusted EBITDA (28.4%). The results were particularly pleasing in light of the commitment by the senior management team to the admission to AIM process which successfully concluded on 8 June 2015.

 

Operational Review  

 

The firm benefitted throughout the year from improving market conditions. Clients began to feel cautiously optimistic about the future and therefore sought our services to implement and aid their growth plans.  Revenues from Banking and Financial Services were up by 12.8% on the previous year driven by an increasing number of banking transactions taking place and notable successes in recovering monies obtained through fraudulent or deceitful transactions. Corporate deal flow increased in the year and revenues from this division improved by 14.1% over 2014. The Property division increased its revenues by 16.1% due to improvements in the marketplace for both commercial and residential property development.

The strong performance from the Corporate team was endorsed by achievement of a third position nationally for deal volume in the 2014 Experian Corporate Finance / M&A Adviser League Table and a first place in the Midlands.  The team advised on more than 250 corporate deals with an aggregate value in excess of £1.5 billion.

The residential development team achieved its goal of acting for all of the top ten house builders in the UK.  With a team of 72 staff nationally, our residential development unit is one of the largest stand-alone teams of its kind in the UK.  To add to this a new residential development offering has been set up in London with the movement of one partner from Birmingham to the London office and the recruitment externally of a senior associate.  This will help us build on our reputation in this sector and attract more work from the offices of our existing clients located in the South East.

In terms of infrastructure, the business has continued to invest in its people and its offices. Twelve new law graduates entered training contracts with Gateley during the year and ten qualified as solicitors following completion of their two year training contracts and have been retained. Seven new partners have been hired across a number of practice areas. A new Client and Market Development Director has also been appointed to focus on developing new business and sales opportunities as well as driving the firm's "go to market" strategy.  Office moves to increase capacity were completed in Nottingham and Leeds and bonuses earned by all employees increased to 6.13% of staff payroll costs (5.6% for 2014). We continue to explore acquisitions in businesses providing complementary commercial services as well as securing lateral hires of individuals and teams. 

 

We are delighted that all employees received shares in Gateley (Holdings) Plc (the "Company") following admission to trading on AIM and the firm is in the process of implementing an all staff share ownership scheme. The aim of encouraging widespread equity ownership is to attract, retain and motivate talent and to ensure all staff can benefit from the firm's longer term growth.

 

Financial Review

 

For clarity of understanding and ease of future comparison, we have prepared pro-forma financial information for the year ended 30 April 2015, as if the Plc structure of the Group formed in order to achieve its AIM listing was already in place at the end of the financial year being reported. A summary of the corporate structure changes effected in order to move from an LLP to a Plc is included in Note 1 below.

 

During the year ended 30 April 2015, the Group expanded its client base which yielded revenue growth of 11.5% to £60.9m (2014: £54.6m). This strong revenue growth, together with efficient operating controls which delivered an increase in the utilisation of fee generating staff to 85% (2014: 84%), combined to deliver growth in adjusted pro-forma EBITDA of 28.4% to £11.3m (2014: £8.8m).

 

Personnel costs increased by 9.9% to £35.6m (2014: £32.4m) as management increased the number of fee generating staff in order to service its expanding client base and to broaden the Group's geographical coverage. Pro-forma Other Operating Costs increased by 6.3% to £15.1m (2014: £14.2m). This increase in costs reflects planned investment in the infrastructure of the business designed to service actual and future growth such as office relocations in Leeds and Nottingham and enhanced IT systems.  

 

Adjusted Pro-forma Pre-tax Profit was up 32.4% to £9.8m (2014: £7.4m). Adjusted pro-forma numbers are stated after excluding income or expenses that relate to non-underlying items. Non-underlying items include one-off professional costs in respect of the Group's future strategy, on-going property lease restructuring costs and additional costs resulting from the release of operating lease incentives in accordance with IFRS, whereby lease incentives are now recognised over the full term of the lease.

 

The pro-forma net asset position of the Group balance sheet has improved from nil, as is typical within an LLP structure, to £3.8m on admission on 8 June 2015.

Cash generated from operating activities before transactions with members yielded an actual cash balance at the year-end of £2.7m. On a pro-forma basis, closing cash totalled £9.8m arising from the change in funding structure depicted in the pro-forma adjustments to net debt. The Group's pro-forma net debt position as at 30 April 2015 has changed as a result of the replacement of individual members' capital classified as a liability, otherwise known as "fixed capital", with term bank debt, along with the injection of new money from the issue of new share capital totalling £5m.  The total injection of £15m of new cash into the Group balance sheet on admission will be used firstly to repay in full all members' fixed capital and thereafter to assist in the on-going working capital funding of the Group.

Net Debt

 

2015

2014

 

£m

£m

 

 

 

Cash and cash equivalents

9.8

2.0

Fixed capital

-

(6.0)

Term loans

(10.0)

-

 

(0.2)

(4.0)

Current trading and outlook

Trading in the first few months of the new financial year has been encouraging and whilst business confidence continues to improve it remains a challenging market.  It has been pleasing to see that our new Plc status has raised our profile and attracted interest from potential acquisition targets and lateral hires, as well as the media.  We remain focussed on delivering another year of growth and the Board looks forward to the first year of Gateley as a Plc with confidence.

 

 

 

Consolidated income statement

For the year ended 30 April 2015

 

 

Note

 

Audited

LLP

2015

 

Proforma

change

2015

 

Unaudited

Proforma

2015

 

Unaudited

Proforma

2014

 

 

£000

£000

£000

£000

 

 

 

 

 

 

Revenue

2

60,871

-

60,871

54,616

 

 

 

 

 

 

Other operating income

4

386

-

386

418

Personnel costs

6

(21,743)

(13,841)

(35,584)

(32,411)

Depreciation and

Amortisation

 

8

 

(822)

 

-

 

(822)

 

(976)

Other operating expenses

 

(15,061)

-

(15,061)

(14,201)

 

 

 

 

 

 

Operating profit

 

 

23,631

(13,841)

9,790

7,446

Operating profit before

non-underlying items

 

 

24,285

 

(13,841)

 

10,444

 

7,819

Non-underlying items and IFRS transition adjustments

 

(654)

-

(654)

(373)

 

 

 

 

 

 

Financial income

7

198

-

198

184

Financial expenses

7

(151)

-

(151)

(203)

 

 

 

 

 

 

Net financing

income/(expense)

 

 

47

 

-

 

47

 

(19)

 

 

 

 

 

 

Profit before tax

 

23,678

(13,841)

9,837

7,427

Pro-forma taxation

 

-

(2,093)

(2,093)

(1,708)

 

 

 

 

 

 

Profit for the year

 

23,678

(15,934)

7,744

5,719

 

 

 

 

 

 

 

Pro-forma Earnings per ordinary share:

 

Pro-forma basic (pence)

 

 

 

 7.4

 

5.4

Pro-forma total dividend yield

 

 

5.4%

4%

 

 

 

 

 

 

The results for the periods presented above are derived from continuing operations.

Non-underlying items include one-off professional costs in respect of the Group's future strategy, on-going property lease restructuring costs and additional costs resulting from the release of operating lease incentives in accordance with IFRS, whereby lease incentives are now recognised over the full term of the lease.

Dividend yield based on 70% of profit after tax being available for distribution and £100m market capitalisation.

 

 

Consolidated statement of financial position

at 30 April 2015

 

Note

Audited

LLP

2015

Pro-forma

change

2015

Unaudited

Pro-forma

1 May 2015

Audited

LLP

2014

 

 

£000

£000

£000

£000

Non-current assets

 

 

 

 

 

Property, plant and equipment

8

1,499

-

1,499

1,552

Investment property

9

164

-

164

164

Investments

10

70

-

70

30

 

 

 

 

 

 

Total non-current assets

 

1,733

-

1,733

1,746

 

 

 

 

 

 

Current assets

 

 

 

 

 

Trade and other receivables

11

31,695

-

31,695

28,948

Cash and cash equivalents

 

2,719

7,083

9,802

1,994

 

 

 

 

 

 

Total current assets

 

34,414

7,083

41,497

30,942

 

 

 

 

 

 

Total assets

 

36,147

7,083

43,230

32,688

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Other interest-bearing loans and

borrowings

12

 

-

 

(1,000)

 

(1,000)

 

(333)

Trade and other payables

13

(13,482)

-

(13,482)

(13,589)

Provisions

14

(160)

-

(160)

(139)

Individual members' capital classified

as a liability

15

 

(6,717)

 

6,717

 

-

 

(6,044)

Amounts due to members

15

(15,257)

-

(15,257)

(12,884)

 

 

 

 

 

 

Total current liabilities

 

(35,616)

5,717

(29,899)

(32,989)

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

 

Other interest-bearing loans and

borrowings

12

 

-

 

(9,000)

 

(9,000)

 

-

Other payables

13

(154)

-

(154)

(304)

Provisions

14

(377)

-

(377)

(328)

 

 

 

 

 

 

Total non-current liabilities

 

(531)

(9,000)

(9,531)

(632)

 

 

 

 

 

 

Total liabilities

 

(36,147)

(3,283)

(39,430)

(33,621)

 

 

 

 

 

 

Net assets/(liabilities)

 

-

3,800

3,800

(933)

 

 

 

 

 

 

 

The pro-forma changes reflect the drawdown of £10 million under new 5 year term loan agreements on admission to AIM.  The proceeds of which were used to repay individual members' fixed capital and support the working capital transition after admission.  Also included within the pro-forma changes is the receipt by the Group of net proceeds from the Placing of £3.8m.
 

Consolidated cash flow Statement

for the year ended 30 April 2015

 

 

 

Audited

LLP

2015

Pro-forma

change

2015

Unaudited

Pro-forma

1 May 2015

Audited

LLP

2014

 

 

£000

£000

£000

£000

Cash flows from operating activities

 

 

 

 

 

Profit for the year

 

23,678

(13,841)

9,837

7,427

Adjustments for:

 

 

 

 

 

  Depreciation and amortisation

 

822

-

822

976

  Financial income

 

(198)

-

(198)

(184)

  Financial expense

 

151

-

151

203

  Profit on disposal of property, plant and equipment

 

(4)

-

(4)

(2)

 

 

 

 

 

 

 

 

24,449

(13,841)

10,608

8,420

  Increase in trade and other receivables

 

(2,747)

-

(2,747)

(3,074)

  (Decrease)/increase in trade and other payables

 

(181)

-

(181)

1,381

  Increase/(decrease) in provisions

 

70

-

70

(233)

 

 

 

 

 

 

Net cash flows from operating activities before transactions with
members

 

 

21,591

 

(13,841)

 

7,750

 

6,494

Payments to members

 

(20,372)

13,841

(6,531)

(2,457)

 

 

 

 

 

 

Net cash from operating activities

 

1,219

-

1,219

4,037

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Interest and other financial income paid

 

47

-

47

(19)

Acquisition of property, plant and equipment

 

(869)

-

(869)

(558)

Acquisition of investments

 

(40)

-

(40)

-

Proceeds from sale of property, plant and equipment

 

104

-

104

11

 

 

 

 

 

 

Net cash from investing activities

 

(758)

-

(758)

(566)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Proceeds from issue of shares less IPO costs

 

-

3,800

3,800

-

Proceeds from new loans

 

-

10,000

10,000

1,000

Repayment of borrowings

 

(333)

-

(333)

(917)

Drawings by minority interest

 

-

-

-

13

Capital introduced by members

 

1,028

-

1,028

949

Capital repayments to members

 

(355)

(6,717)

(7,072)

(2,423)

Payment of finance lease liabilities

 

(76)

-

(76)

(75)

 

 

 

 

 

 

Net cash from financing activities

 

264

7,083

7,347

(1,453)

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

725

7,083

7,808

2,018

Cash and cash equivalents at beginning of year

 

1,994

-

1,994

(24)

 

 

 

 

 

 

Cash and cash equivalents at end of year

 

2,719

7,083

9,802

1,994

 

 

 

 

 

 

               

 

 

 

Notes

(forming part of the financial statements)

 

1              Basis of preparation and significant accounting policies

Gateley (Holdings) Plc was incorporated on 13 November 2014 and was dormant at the period end of 30 April 2015 having only issued nominal share capital to that point. Post period end, on 29 May 2015, the Company acquired 100 per cent of the issued share capital of Gateley Plc which had, on the same day, acquired the business assets and liabilities of Gateley (Heritage) LLP formerly the partnership of Gateley LLP.  On 8 June 2015, Gateley (Holdings) Plc listed on the AIM market of London Stock Exchange Plc ("AIM").  The last day of trading of Gateley LLP was 30 April 2015.

The Audited results of the LLP relate to the financial performance of Gateley Heritage LLP and its subsidiaries ("the Group") for the year ended 30 April 2015.  At that time the Group was controlled by Gateley Heritage LLP (formerly Gateley LLP) ("the partnership") which was incorporated in the United Kingdom as a Limited Liability Partnership under the Limited Liability Partnership Act 2000.

The Group financial statements consolidate those of the partnership and its subsidiaries.

The Group financial statements have been prepared and approved by the members in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs").

The Group has prepared its financial statements in accordance with Adopted IFRSs.

The pro-forma adjustments and results, used within the consolidated income statement, have been prepared consistently with information provided on historical results in the Group's admission document upon IPO.  The balance sheet, cash flow statement and related notes continue to represent those of the partnership but also include pro-forma adjustments designed to demonstrate the inclusion of partners' pay as a personnel cost, a pro-forma corporation tax charge together with the effects on net debt in the balance sheet of full repayment of partners' fixed capital.

 

2              Operating segments

The Chief Operating Decision Maker ("CODM") is the Strategic Board. The Group have the following five strategic divisions, which are its reportable segments.  These divisions offer different products and services and are managed separately because they report different specialisms from the legal teams in those divisions.

The following summary describes the operations of each reportable segment:

Reportable segment

Operations

Banking and Financial Services

Provision of legal advice in respect of asset finance, banking and corporate recovery services.

Corporate

Provision of legal advice in respect of corporate, family, private client and taxation services.

Business Services

Provision of legal advice in respect of commercial, commercial dispute resolution (litigation), regulatory, shipping, transport and insurance services.

Employees, Pensions and Benefits

Provision of legal advice in respect of employment and pension services.

Property

Provision of legal advice in respect of construction, planning, real estate and residential development services.

The revenue and operating profit are attributable to the principal activities of the Group.  A geographical analysis of revenue is given below:

 

2015

2014

 

£000

£000

 

 

 

United Kingdom

58,063

52,072

Europe

1,165

1,164

Middle East

803

654

North and South America

583

369

Asia

179

183

Other

78

174

 

 

 

 

60,871

54,616

 

 

 

30 April 2015

 

Banking and
Financial
 Services

Corporate

Business
Services

Employee
Pensions and
Benefits

Property
 

Total

segments

Other
expenses and
 movement in
unbilled
revenue

Total

 

£000

£000

£000

£000

£000

£000

£000

£000

 

 

 

 

 

 

 

 

 

Segment revenue

12,296

9,992

8,872

7,144

20,073

58,377

2,494

60,871

 

 

 

 

 

 

 

 

 

Segment contribution

(as reported internally)

7,880

5,625

5,441

4,102

12,478

35,526

2,494

38,020

 

 

 

 

 

 

 

 

 

Costs not allocated to segments

-

-

-

-

-

-

-

(14,389)

Net financial expense

-

-

-

-

-

-

-

47

 

 

 

 

 

 

 

 

 

Profit for the financial year before

members' remuneration and profit shares

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

23,678

 

 

 

 

 

 

 

 

 

 

Operating segments (continued)

30 April 2014

 

Banking and
Financial
 Services

Corporate

Business
Services

Employee
Pensions and
Benefits

Property
 

Total
segments

Other
expenses and
 movement in
unbilled
revenue

Total

 

£000

£000

£000

£000

£000

£000

£000

£000

 

 

 

 

 

 

 

 

 

Segment revenue

10,903

8,761

9,015

6,348

17,290

52,317

2,299

54,616

 

 

 

 

 

 

 

 

 

Segment contribution

(as reported internally)

6,572

5,180

5,476

3,945

10,131

31,304

2,297

33,601

 

 

 

 

 

 

 

 

 

Costs not allocated to segments

-

-

-

-

-

-

-

(13,529)

Net financial expense

-

-

-

-

-

-

-

(19)

 

 

 

 

 

 

 

 

 

Profit for the financial year before

members' remuneration and profit shares

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

20,053

 

 

 

 

 

 

 

 

 

 

No other financial information has been disclosed as it is not provided to the CODM on a regular basis.

3              Pro-forma Earnings per share

Pro-forma basic earnings per share, shown on the consolidated income statement is based on profit after tax divided by 105,274,159, being the total number of shares in issue at the date of admission to AIM.

4              Other operating income

 

2015

2014

 

£000

£000

 

 

 

Rental income

329

267

Gateley (Manchester) LLP income

57

151

 

 

 

 

386

418

 

 

 

5              Expenses and auditor's remuneration

Included in profit/loss are the following:

 

2015

2014

 

£000

£000

 

 

 

Depreciation on owned assets

721

873

Depreciation on assets held under finance leases

101

103

Operating lease costs

323

322

Operating lease costs on property

2,526

2,549

Other operating income - rent received

(329)

(267)

Foreign exchange losses

2

13

Profit on sale of fixed assets

(4)

(2)

 

 

 

 

Non-underlying items and IFRS transition adjustments

 

2015

2014

 

£000

£000

 

 

 

IFRS lease adjustment

388

373

One-off professional costs

143

-

Property restructuring costs

123

-

 

 

 

 

654

373

 

 

 

Non-underlying items include one-off professional costs in respect of the Group's future strategy, ongoing property lease restructuring costs and additional costs resulting from the release of operating lease incentives in accordance with IFRS, whereby lease incentives are now recognised over the full term of the lease.

Auditor's remuneration

 

2015

2014

 

£000

£000

 

 

 

Audit of these financial statements

53

45

 

 

 

Amounts receivable by the company's auditor and its associates in respect of:

 

 

  Audit of financial statements of subsidiaries of the company

14

14

  Other auditing services pursuant to legislation

30

25

  Partnership and partners' individual tax compliance fees

89

67

  Taxation and business advisory services

99

14

 

 

 

 

 

 

6              Members and employee information

The average number of persons employed by the Group during the year, analysed by category, was as follows:

 

Number of employees

 

2015

2014

 

 

 

 

 

Members

89

92

 

Legal staff

297

281

 

Administrative staff

231

216

 

 

 

 

 

 

617

589

 

 

 

 

 

The aggregate pro-forma payroll costs of these persons were as follows:

 

£000

£000

 

 

 

Wages and salaries

31,580

28,725

Social security costs

3,492

3,253

Pension costs

512

433

 

 

 

 

35,584

32,411

 

 

 

 

 

 

7              Financial income and expense

Recognised in profit and loss

 

2015

2014

 

£000

£000

Financial income

 

 

Interest income on unimpaired financial assets

198

184

 

 

 

Total finance income

198

184

 

 

 

Financial expense

 

 

Interest expense on bank borrowings measured at amortised cost

(143)

(195)

Interest payable on finance leases

(8)

(8)

 

 

 

Total financial expense

(151)

(203)

 

 

 

8              Property, plant and equipment

Group

Leasehold

improvements

Equipment

Fixtures and

fittings

Total

 

£000

£000

£000

£000

Cost

 

 

 

 

Balance at 1 May 2013

122

5,435

3,836

9,393

Additions

-

213

344

557

Disposals

-

(124)

-

(124)

 

 

 

 

 

Balance at 30 April 2014

122

5,524

4,180

9,826

 

 

 

 

 

Balance at 1 May 2014

122

5,524

4,180

9,826

Additions

29

386

454

869

Disposals

-

(1,242)

-

(1,242)

 

 

 

 

 

Balance at 30 April 2015

151

4,668

4,634

9,453

 

 

 

 

 

Depreciation and impairment

 

 

 

 

Balance at 1 May 2013

18

4,441

2,963

7,422

Depreciation charge for the year

5

605

358

968

Disposals

-

(116)

-

(116)

 

 

 

 

 

Balance at 30 April 2014

23

4,930

3,321

8,274

 

 

 

 

 

Balance at 1 May 2014

23

4,930

3,321

8,274

Depreciation charge for the year

5

388

429

822

Disposals

 

(1,142)

-

(1,142)

 

 

 

 

 

Balance at 30 April 2015

28

4,176

3,750

7,954

 

 

 

 

 

Net book value

 

 

 

 

At 30 April 2013 and 1 May 2013

104

994

873

1,971

 

 

 

 

 

At 30 April 2014

99

594

859

1,552

 

 

 

 

 

At 30 April 2015

123

492

884

1,499

 

 

 

 

 

At the period end, the assets held under finance lease are £Nil (2014: £101,000).

 

Notes (continued)

9              Investment property

 

2015

2014

 

£000

£000

 

 

 

Balance at beginning of year

164

172

Fair value adjustments (unrealised)

-

(8)

 

 

 

Balance at end of year

164

164

 

 

 

10           Investments

Investments are held in Mantua Capital (UK) LP (via Gateley Investments Limited) and Business Collaborator Limited.

 

£000

Cost

 

Balance at beginning of year

30

Additions

40

 

 

Balance at end of year

70

 

 

Investments in subsidiaries

The Group had effective control of the following:

 

Country of
incorporation

Proportion held during 2015

Nature of business

 

 

 

 

 

 

 

 

Gateley UK LLP

England and Wales

**

Legal services via a branch in Dubai

Entrust Pension Limited

England and Wales

100%

Pension trustee company

 

 

 

 

Gateley Investments Limited

England and Wales

100%

Corporate Investment company

Ensco Trustee Company Limited *

England and Wales

100%

Corporate trustee company

Gateley (Manchester) LLP

England and Wales

51%

Collection of residual assets

HCT Consultancy Limited *

England and Wales

100%

Non-trading

Gateley Secretaries Limited *

England and Wales

100%

Non-trading

Gateley Wareing Limited *

England and Wales

100%

Non-trading

Gateley Incorporatons Limited *

England and Wales

100%

Non-trading

HBJ Manchester Secretaries Limited *

England and Wales

100%

Non-trading

HBJ Manchester Directors Limited *

England and Wales

100%

Non-trading

Gateley Custodian and Nominee Services Limited *

England and Wales

100%

Non-trading

*              these investments are indirectly held at the year end

**           the equity partners of Gateley Heritage LLP as individuals are members of this entity, although effective control is held by Gateley Heritage LLP via a trust holding arrangement.

Non-controlling interests

 

2015

2014

 

£000

£000

 

 

 

Balance at beginning of year

-

(13)

Transferred from Gateley (Manchester) LLP

-

13

Profits owed to Gateley (Manchester) LLP only members

-

-

 

 

 

Balance at end of year

-

-

 

 

 

During the year Gateley (Manchester) LLP has generated and allocated profits of £56,733 (2014: £151,194) from which £27,799 (2014: £74,085) is owed to non-controlling interested parties.
 

11           Trade and other receivables

 

 

 

 

 

 

 

 

2015

2014

 

 

 

£000

£000

 

 

 

 

 

Trade receivables

 

 

21,179

19,031

Unbilled revenue

 

 

8,716

7,269

Prepayments and accrued income

 

 

1,774

2,648

Amounts owed to related parties

 

 

26

-

 

 

 

 

 

Balance at beginning of year

 

 

31,695

28,948

 

 

 

 

 

All trade receivables are repayable within one year.

 

Movement in the allowance for doubtful receivables

 

2015

2014

 

£000

£000

 

 

 

Brought forward provision

(1,911)

(1,820)

Provision utilised

331

174

Charged to income

(905)

(652)

Provisions released

657

387

 

 

 

 

(1,828)

(1,911)

 

 

 

Ageing of trade receivables (net of provisions)

 

2015

2014

 

£000

£000

 

 

 

Not past due

14,825

14,109

Past due 0-30 days

1,462

2,169

Past due 31-120 days

2,122

1,229

Past due greater than 120 days

2,770

1,524

 

 

 

 

21,179

19,031

 

 

 

The carrying amount of financial assets recorded in the financial statements, which is net of any impairment losses, represents the Group's maximum exposure to credit risk.  Financial assets include client and other receivables and cash.  The Group does not hold collateral over these balances.

 

12           Other interest-bearing loans and borrowings

The contractual terms of the Group's interest-bearing loans and borrowings, which are measured at amortised cost are described below.

 

2015

 

2014

 

 

Face value

Carrying
amount

Face value

Carrying
amount

 

£000

£000

£000

£000

Current liabilities

 

 

 

 

Unsecured bank loan

-

-

333

333

Finance lease obligations

57

57

133

133

 

 

 

 

 

The overdraft facilities are repayable on demand and have remained at a maximum of £6 million since 20 July 2011.

Included within trade and other payables are gross finance lease liabilities.

On 8 June 2015 Gateley Plc entered into two new loan agreements of £5m each.  The total £10m of term loans are repayable quarterly over 5 years commencing on 8 November 2015.  Interest is chargeable at 2.25% over LIBOR.  The injection of cash from these loans is shown on the pro-forma consolidated statement of financial position.

 

13           Trade and other payables

 

 

 

 

 

 

 

 

2015

2014

 

 

 

£000

£000

Current

 

 

 

 

Trade payables

 

 

4,031

4,479

Other taxation and social security payable

 

 

3,357

3,227

Other payables

 

 

405

173

Accruals and deferred income

 

 

5,632

5,577

Obligations under finance leases

 

 

57

133

 

 

 

 

 

 

 

 

13,482

13,589

 

 

 

 

 

Non-current

 

 

 

 

Other payables

 

 

154

304

 

 

 

 

 

14           Provisions

Professional indemnity

 

 

 

2015

2014

 

£000

£000

 

 

 

At beginning of year

467

700

Provisions made during the year

596

284

Provisions used during the year

(451)

(377)

Provisions reversed during the year

(75)

(140)

 

 

 

At end of year

537

467

 

 

 

Non-current

160

139

Current

377

328

 

 

 

 

537

467

 

 

 

The professional indemnity provision represents amounts equal to the insurance excesses payable on outstanding claims against the LLP which are covered by the LLP's professional indemnity insurance policy.

 

15           Members' interests

Members' interests comprise other reserves, members' capital and other amounts due to/(from) members as follows:

Group

 

Individual members' capital classified as a liability

Amounts
due to members

Other
reserves

Total
members'
interests

 

£000

£000

£000

£000

 

 

 

 

 

At 1 May 2013

7,518

7,542

(560)

14,500

Profit for the financial year available for division among members

 

-

 

20,425

 

(373)

 

20,052

Members' capital introduced

949

-

-

949

Members' capital repaid

(2,423)

-

-

(2,423)

Drawings and distributions

-

(15,083)

-

(15,083)

 

 

 

 

 

At 30 April 2014

6,044

12,884

(933)

17,995

 

 

 

 

 

At 1 May 2014

6,044

12,884

(933)

17,995

Profit for the financial year available for division among members

 

-

 

22,745

 

933

 

23,678

Members' capital introduced

1,028

-

-

1,028

Members' capital repaid

(355)

 

 

(355)

Drawings and distributions

-

(20,372)

-

(20,372)

 

 

 

 

 

At 30 April 2015

6,717

15,257

-

21,974

 

 

 

 

 

 

16           Post balance sheet events

Post year end, on the 8 June 2015, Gateley (Holdings) Plc listed on the AIM Market of London Stock Exchange Plc ("AIM").  Gateley (Holdings) Plc is now the ultimate parent company of Gateley Heritage LLP.  Gateley Plc is the immediate parent undertaking of Gateley Heritage LLP.

A Group reorganisation occurred on 29 May 2015 that became effective upon admission of the new Gateley Group.  The reorganisation involved the sale of all of the business assets and liabilities of Gateley Heritage LLP to Gateley Plc, with effect from an economic date for accounting purposes of 1 May 2015, in consideration for the issue of ordinary shares in the capital of Gateley Plc.  The shares in Gateley Plc were distributed to the members of Gateley Heritage LLP by way of a capital profit distribution.  These shares were then subject to a share for share exchange with shares in the newly formed Gateley (Holdings) Plc prior to admission.  All members in Gateley Heritage LLP then subsequently resigned. Gateley Plc became the sole corporate member of Gateley Heritage LLP.  Gateley Heritage LLP is now therefore, following admission, a dormant subsidiary of Gateley Plc.

 

As part of the reorganisation detailed above, Gateley Heritage LLP transferred its investment in Entrust Pension Limited (that interest being its 100% shareholding of Entrust Pension Limited) together with its membership interest in Gateley UK LLP (which it held on trust for the members of Gateley Heritage LLP) to Gateley (Holdings) Plc.

 

On 29 May 2015, Gateley LLP changed its name to Gateley Heritage LLP.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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