REG - Gateley (Holdings) - FY 2026 Trading Update

Gateley (Holdings)Announcement

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RNS Number : 9146G  Gateley (Holdings) PLC  04 June 2026

4 June 2026

Gateley (Holdings) Plc

("Gateley" or the "Group")

(AIM:GTLY)

Trading update

 

Gateley, the professional services group, announces the following trading
update for the year ended 30 April 2026 ('FY 26').

The Board expects revenue for FY 26 of c £193m, up circa 7% on the prior year
and ahead of consensus expectations, and underlying operating profit of
between £21m - £22m, in-line with consensus expectations.  The c 11.1%
adjusted operating margin (FY25: 11.7%) reflects changing business mix and
higher than anticipated transactional deferment as we progressed through Q4.
The Group ended the year with net debt (excluding IFRS 16 leases) of £25.3m
(FY25: £6.6m).

As previously reported, after a strong start to FY 26 the Group experienced a
slowing of certain transactional services activity through Q2 as uncertainty
around the UK November Budget caused some client activity to be paused.
Although we saw a degree of normalisation during H2, more recent developments
in the Middle East, combined with a worsening medium term interest rate
outlook, also impacted client sentiment, resulting in a mix of transactional
timelines pausing and extending beyond FY 26 in both our Corporate and
Property Platforms.  A further feature of the year has been the strong growth
in targeted contentious workstreams, which has resulted in the Group building
significant contingent unbilled time. These workstreams are highly attractive
from a margin perspective albeit remain dependent on successful outcomes for
revenue and profit recognition. Overall the Group's revenue performance was
strong, reflecting broader improvements in utilisation and the diversified
nature of the business across all of our Platforms.

The Group also completed the acquisition of Groom Wilkes & Wright ("GWW")
in period, which has been trading strongly and ahead of our expectations since
acquisition. The acquisition consideration paid was cash-weighted, which
alongside an increase in working capital contributed to the increase in net
debt.

As previously reported, the Group took cost actions during the year resulting
in fee earner headcount marginally down against the start of the year and
average team utilisation improving.  Within this the Group has also
selectively hired in FY 26, especially in high-value work areas, including
contentious litigation where activity levels continue to be strong.
 

The Group remains focused on margin improvement including from its system
investments, such as Jylo, the AI platform, and returns from selective hiring
in key growth areas, whilst continuing to actively manage its cost base, with
a clear focus on continuing to maximise utilisation across the business and
gaining operational efficiencies in FY 27.

The Group expects to announce its full year results in mid July 2026.

 

Rod Waldie, Chief Executive Officer, commented:

"I am pleased to be reporting our full year results update.  Whilst our Q4
experienced longer than anticipated transactional cycles as a result of the
macro backdrop, we enter FY 27 with good activity levels across transactional
and contentious workstreams, and we continue to see attractive mandated and
pipeline opportunities across the Group's Platforms. With the diversified
nature of the Group's business, strong expertise across excellent teams and
numerous growth opportunities, we are well positioned to deliver future,
profitable growth."

 

Enquiries:

 Gateley (Holdings) Plc
 John Paton, 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
 Nicholas How / Satbir Kler / Izzy Anderson                        Tel: +44 (0) 20 3100 2000

 

 

 

 

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