REG - Gateley (Holdings) - Issue of Equity relating to Gateley RJA and TVR

Gateley (Holdings)Announcement

01/08/2024 07:00

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RNS Number : 6783Y  Gateley (Holdings) PLC  01 August 2024

1 August 2024

 

GATELEY (HOLDINGS) PLC

("Gateley" or the "Company")

 

Issue of Equity in relation to Gateley RJA

and

Total Voting Rights

 

Gateley (Holdings) Plc (AIM: GTLY), the professional services group, announces
that pursuant to the terms of the acquisition of RJA Consultants, now Gateley
RJA ("RJA"), which completed in July 2023, earn out consideration of £0.8
million is to be paid to the vendors on 5 August 2024, satisfied 50% in
ordinary shares in Gateley and 50% in cash.

The first tranche earn-out hurdle of £4m was achieved through the delivery of
£4.95m of revenue over the 12 months to 31 March 2024. This represents a
23.7% over achievement above the year one hurdle.  RJA has also achieved a
corporatised EBITDA margin of 25% during this period, in excess of
management's expectations.

The earn-out consideration comprises £0.4 million in cash and £0.4 million
in shares, based upon a 20-day average share price up to 22 July 2024 of
£1.34.  Accordingly, 299,438 ordinary shares of 10p each in Gateley
("Ordinary Shares") are being issued and application has been made to the
London Stock Exchange plc for these shares to be admitted to trading on AIM
("Admission").  Admission is expected to occur at 8.00 a.m. on 5 August 2024.

Rod Waldie, Gateley Chief Executive Officer, said:

 

"I am delighted that RJA's strong revenue and profit growth, since joining
Gateley, has resulted in the achievement of the first of two potential
earn-out payments.  RJA is an excellent addition to the increasingly broad
range of legal and consultancy services on our Property Platform.  The team
is highly regarded in the affordable housing sector, which we anticipate will
continue to benefit from the new Government's housing policy. In addition,
RJA's specialism in major loss property claims enhances our existing expertise
at Gateley Smithers Purslow and Gateley Vinden, both of which are growing
revenue from the UK property insurance sector."

Total Voting Rights

Following Admission, Gateley's total issued share capital will comprise
133,519,395 Ordinary Shares in issue with one voting right per share.

The above figure may be used by shareholders in the Company as the denominator
for the calculations by which they will determine if they are required to
notify their interest in, or a change to their interest in, the share capital
of the Company under the FCA's Disclosure Guidance and Transparency Rules.

 

Enquiries:

 

 Gateley (Holdings) Plc
 Neil Smith, Chief Financial Officer                               Tel: +44 (0) 121 234 0196
 Nick Smith, Acquisitions Director and Head of Investor Relations  Tel: +44 (0) 20 7653 1665
 Cara Zachariou, Communications Director                           Tel: +44 (0) 121 234 0074 Mob: +44 (0) 7703 684 946

 Panmure Liberum - Nominated Adviser and Broker                    Tel: +44 (0) 20 3100 2000

 Richard Lindley//Nikhil Varghese

 Belvedere Communications Limited - Financial PR
 Cat Valentine (cvalentine@belvederepr.com)                        Mob: +44 (0) 7715 769 078
 Keeley Clarke (kclarke@belvederepr.com)                           Mob: +44 (0) 7967 816 525
 Llew Angus (langus@belvederepr.com)                               Mob: +44 (0) 7407 023 147
                                                                   gateleypr@belvederepr.com

 

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