GTLY Gateley (holdings) Plc

TIDMGTLY

RNS Number : 2870H

Gateley (Holdings) PLC

24 March 2020

24 March 2020

GATELEY (HOLDINGS) PLC

("Gateley", the "Group" or the "Company")

AIM: GTLY

COVID-19 and dividend update

Gateley (Holdings) Plc (AIM:GTLY), the legal and professional services group, provides an update to shareholders regarding current and future trading and the impact of the COVID-19 pandemic.

Gateley is prudently managed for organic and diversified growth, with low levels of debt and a focus on long-term success for its stakeholders. Following a solid first half performance and further diversification by completing four earnings enhancing acquisitions, the improvements in the economic backdrop and Brexit clarity following the general election resulted in growing demand for our services in the second half of the financial year to 30 April 2020. Trading until the end of February was in line with the Board's expectations. Activity has, understandably, reduced since 1 March 2020, as a result of the disruption caused by the COVID-19 pandemic to our clients and to our staff. When the Board has visibility on the impact of the virus on the Company's full year performance, we will provide a further trading update.

The Group remains highly resilient, with a strong client base and a well-balanced and diversified service offering. We have successfully mobilised our staff to work from home in line with all Government guidelines and many parts of the business are currently busy assisting clients with COVID-19 related issues as well as other ongoing matters. The Board has, nevertheless, given careful consideration to the rapidly evolving Government guidance in respect of the COVID-19 pandemic and has concluded that it is presently impossible to predict the Group's likely trading performance in the short-term. The Board is, therefore, taking the prudent step to suspend financial guidance going forward until both the impact and duration of the COVID-19 pandemic becomes clearer.

The Board also believes that it would be prudent and in the best interests of all stakeholders to maximise the Group's short-term liquidity. With this in mind, it has decided to cancel the Group's interim dividend of 2.9 pence per share, which was due for payment on 31 March 2020.

Michael Ward, Gateley Chief Executive Officer, said:

"As a Board, we consider these measures to be in the best interests of all our stakeholders. Gateley is a resilient and well-balanced business and our economic and geographically diversified business model is well-placed to withstand difficult economic conditions.

"On behalf of the Board, I thank all of our people for their continued dedication and hard work under these extremely challenging circumstances and for ensuring that our clients continue to receive the outstanding level of service which they have come to expect from Gateley."

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Enquiries:

 
 Gateley (Holdings) Plc 
 Neil Smith, Finance Director                        Tel: +44 (0) 121 234 
                                                                     0196 
 Nick Smith, Acquisitions Director and                Tel +44 (0) 20 7653 
  Head of Investor Relations                                         1665 
 Cara Zachariou, Head of Corporate Communications     Tel +44 (0) 121 234 
                                                                     0074 
 
 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 / Ben Farrow (Corporate Finance) 
 Rachel Hayes (Corporate Broking) 
 
 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@belevederepr.com)               Mob: +44 (0) 7407 023 
                                                                      147 
 

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 rns@lseg.com or visit www.rns.com.

END

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