Gateley (Holdings) PLC Trading Update (8327N)
26 Mayo 2020 - 01:01AM
UK Regulatory
TIDMGTLY
RNS Number : 8327N
Gateley (Holdings) PLC
26 May 2020
26 May 2020
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014. Upon publication of
this announcement, this information is now considered to be in the
public domain.
GATELEY (HOLDINGS) PLC
("Gateley" or the "Group")
AIM: GTLY
TRADING UPDATE
Prudent management in a diverse and resilient Group
Gateley (AIM: GTLY), the legal and professional services group,
is pleased to announce a trading update ahead of the publication of
its audited results for the financial year ended 30 April 2020
("FY20").
Following a solid trading performance in the first half of the
financial year and the further strengthening and diversification of
the Group's service offering through the completion of four
earnings enhancing acquisitions, the COVID-19 disruption to trading
constrained the pace of the Group's growth in the final two months
of FY20. Despite this, the Board is pleased to report that revenue
for FY20 will be not less than GBP108.0 million (FY19: GBP103.5
million).
The Board believes that this solid revenue performance reflects
the breadth and depth of the Group's legal and consulting service
lines and the resilient revenue streams that they yield. Many of
the Group's counter-cyclical service lines are presently extremely
busy, including Restructuring and Dispute Resolution, and staff
from some of our transactional teams, who are less busy, have been
redeployed to support this increased activity elsewhere in the
Group.
The Group's audited FY20 results are expected to be announced in
September 2020 and a Notice of Results announcement will be issued
in due course. This is intentionally later than in previous years
to give the Board additional time to assess the short to
medium-term impact of the COVID-19 pandemic on the business and
enable it to provide the clearest possible guidance to the Group's
shareholders on likely future financial performance.
Working capital position
The Board has reviewed the Group's cash position and its
operating expenses and has taken swift and decisive action to
minimise the financial impact caused by the COVID-19 pandemic.
Alongside our careful stewardship of the Group's cash resources and
low debt levels, the measures taken so far include salary
sacrifices across all employees, the furloughing of a number of
staff and the cancellation or deferral of all discretionary
expenditure. The Board has also negotiated increased and extended
working capital facilities of up to GBP20 million with the Group's
banking partners should such facilities prove to be necessary.
As a result of these actions, the Board is confident that the
Group's balance sheet is robust and able to withstand the financial
impact of the pandemic and that there are sufficient working
capital facilities available to the Group to withstand the
financial impact of the COVID-19 pandemic.
The Board will provide an update on future dividend payments to
shareholders in the FY20 results announcement.
Outlook
Gateley has a long history of delivering growth throughout the
economic cycle. Swift action has been taken to mitigate the effect
of any likely reductions in revenue, in the short to medium term,
whilst keeping teams intact and ready to take full advantage of new
workstreams as the UK economy moves into and out of recession. The
Board is confident that the Group has adequate resources to
withstand the uncertainty created by the pandemic and believes that
the business is well placed to benefit from organic and acquisitive
growth opportunities as they arise.
Rod Waldie, Chief Executive Officer of Gateley, said:
"The wellbeing of our staff remains our highest priority and I
am delighted that our people are staying healthy and that the
transition to remote working has gone smoothly. Our enforced,
sudden move in March to operating the entire business on a remote
platform was swiftly and seamlessly executed and this is a
testament to the dedication and quality of the Gateley team, who
have adjusted to this new way of working very well. I thank all my
colleagues for their understanding during these difficult
times.
"The current trading environment is full of uncertainties. With
a stable and experienced management team, a resilient and
diversified business model and a strong balance sheet, however, we
believe that Gateley is well placed to weather the storm that is
affecting all businesses. We continue to service our clients to the
highest standard and expect to emerge, from the COVID-19 pandemic,
in a strong position to capitalise on the opportunities to grow the
business further which are likely to arise."
Enquiries:
Gateley (Holdings) Plc via Belvedere Communications
Neil Smith, Finance Director
Nick Smith, Acquisitions Director and
Head of Investor Relations
Cara Zachariou, Head of Corporate Communications Mob: +44 (0) 7703 684
946
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
Peter Steel / Ben Farrow (Corporate Finance) Tel: +44 (0) 20 7496
3061
Rachel Hayes (Corporate Broking) Tel: +44 (0) 20 7496
3189
Belvedere Communications Limited - Financial
PR
Cat Valentine Mob: +44 (0) 7715 769
078
Keeley Clarke Mob: +44 (0) 7967 816
525
Llew Angus Mob: +44 (0) 7407 023
147
gateleypr@belvederepr.com
About us
Gateley is a legal and professional services group. Founded in
Birmingham in 1808, we have provided commercial legal services to
individuals and businesses for over 200 years. We have over 700
professional advisers and employ over 1,000 people across offices
located in Belfast, Birmingham, Bolton, Cambridge, Guildford,
Leeds, Leicester, London, Manchester, Nottingham, Reading and
Dubai.
We were the first commercial UK law firm to float when, on 8
June 2015, the Group's shares were admitted to trading on the
London Stock Exchange's AIM market. Our strategy is to
differentiate ourselves in a crowded marketplace, incentivise our
people to retain and attract the best talent in the industry and
diversify our income streams by acquiring complementary business
services.
For further details on Gateley please visit www.gateleyplc.com
or follow us on Twitter www.twitter.com/GateleyGroup
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END
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