UK's Gateley FY26 revenue rises 8.2% to record high, cuts dividend
UK's Gateley FY26 revenue rises 8.2% to record high, cuts dividend
Overview
UK professional services group's FY26 revenue rose 8.2% to record high
Adjusted EPS for FY26 fell 10% year-on-year, driven by lower net interest income
Company rebased dividend, cutting total payout to 5.3p from 9.5p last year
Outlook
Gateley says early FY27 trading is in line with Board expectations
Company maintains ambition to deliver adjusted operating profit margin of at least 13.5%
Gateley says macroeconomic uncertainty persists but activity levels are being maintained
Result Drivers
ORGANIC GROWTH & PRICING - Co said organic revenue growth was driven by strong activity levels, utilisation, and initial benefits from pricing initiatives
INVESTMENTS IN GROWTH AREAS - Recent investments, especially in complex international recovery and class actions, contributed to revenue growth but weighed on margins
Company press release: ID:nRSU1157Na
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue |
| GBP 194.30 mln |
|
FY Adjusted EPS |
| GBP 0.11 |
|
FY Pretax Profit |
| GBP 7.70 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy."
Wall Street's median 12-month price target for Gateley (Holdings) PLC is GBp100.00, about 85.2% above its July 20 closing price of GBp54.00
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago
Reuters Recommended Reads
July 20 - UK's Croma Security FY revenue rises 15%, helped by acquisitions
July 20 - UK's Big Yellow Q1 revenue rises on new store openings
July 19 - UK chief financial officers turn more hopeful about AI
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)