GATELEY (HOLDINGS) PLC Forward thinking Straight talking
Why do we do what we do
Our purpose is to deliver results that delight our clients, inspire our people and support our communities.
How do we do this
We do this by:
being forward thinking about the services that we deliver to our clients and the working environment we provide for our people;being straight talking about what matters, inside and outside of our business; and
thinking differently about what we do and how we do it.
What do we do
We deliver professional services which enable our clients to solve the challenges that they are facing or to maximise the opportunities they are pursuing, without ever losing sight of what makes us Gateley: our Gateley Team Spirit values.
"
By showcasing the diversity of our
Platform offering and how our legal
and complementary service lines can support our clients' businesses, we are presented with a huge opportunity and one that sets us apart from others in our space."
Contents
Business overview
Highlights for the year
3
At a glance
5
Our story Business overview Platforms for growth Inspiring our people Responsible Gateley
6
8
10
14
17
Five key reasons to invest
21
Strategic report
Chairman's statement
24
Chief Executive Officer's review Chief Executive Officer's Q&A Chief Financial Officer's review
28
34
36
Principal activity objectives, strategy and outlook Principal risks and uncertainties
42
46
Section 172(1) statement
50
Task Force on Climate Related Financial Disclosures Environmental actions statement
51
55
Social matters
56
Corporate governance
Board of Directors
Statement on remuneration: voluntary disclosure Directors' report
60 62 69
Our financials
Independent auditors' report to the members of Gateley (Holdings) plc
74
Consolidated statement of profit and loss and other comprehensive income
82
Consolidated statement of financial position Consolidated statement of changes in equity Consolidated cash flow statement
83
85
87
Notes to the consolidated financial statements Parent company statement of financial position Parent company statement of changes in equity Parent company cash flow statement
88
128
129
130
Parent company notes to the financial statements Notice of annual general meeting
131
144
Company information
155
Continuing track record of delivery
Gateley (AIM: GTLY), the professional services group, announces its audited results for the year ended 30 April 2023 ("FY23" or the "Period"), which continue its unbroken record of year-on-year revenue and underlying profit growth.
The Group delivered a strong financial performance in FY23, through its diversified and resilient business model, benefitting from a full year's contribution from the prior year's acquisitions, Adamson Jones Limited and Gateley Smithers Purslow Limited.
The Group achieved organic revenue growth of 6.2%, despite macro-economic headwinds, which created challenging market conditions in the second half of the year.
The balance sheet remains strong and the Group has significant headroom in its banking facilities to enable investment in organic and acquisitive growth opportunities, to further the board's diversification strategy.
GROUP REVENUE
GROUP UNDERLYING PROFIT BEFORE TAXDIVIDEND PER SHARE
18.6% 16.2% 11.8%
In FY23 our Group revenue was £162.7m up by 18.6% compared to £137.2m in FY22
In FY23 our Group underlying profit before tax was £25.1m, up by 16.2% compared to £21.6m in FY22
In FY23 our Dividend per share was 9.5p, up by 11.8% compared to 8.5p in FY22
Rod Waldie, Chief Executive Officer of Gateley, said:
"I am very pleased to report another year of growth for Gateley. This is a strong performance, set against a challenging macro-economic backdrop throughout the second half. It is the result of the hard work and dedication of our people allied to a long-term commitment and adherence to the successful execution of our growth through our diversification strategy, building in resilience through design.
"During the year under review, both our legal services teams and consultancy teams performed strongly and we have made further progress in adding breadth and strength to our Group, expanding the patent and trade mark attorney offer on our Business Services Platform through the acquisition of Symbiosis. Post-Period end, we have added legal services lateral hires to strategically broaden our Business Services Platform dispute resolution teams and have further enhanced our Property Platform with the acquisition of RJA Consultants. Our M&A pipeline for FY24 is encouraging and we will seek to strengthen our Platforms further as opportunities arise.
"Looking forward, we are mindful of ongoing macro-uncertainty and it is difficult to predict market conditions for the rest of FY24. However, our diverse and resilient business model, combined with our proven and consistent track record of delivering strong growth across all economic cycles, means that we have entered FY24 with a positive mindset and cautious optimism."
Highlights for the year
We present below our financial performance for the Period both on an underlying and statutory basis. Underlying results are before the adjustments resulting from changes in acquisition accounting treatment of consideration now adopted, which has no cash impact and is explained in the Chief Financial Officer's Review.
Underlying
Group revenue
Group underlying operating profit1 Group underlying profit before tax1 Underlying adjusted fully diluted EPS2 Dividend per share
Net assets
Net cash3
Reported
Group profit before tax Group profit after tax
Basic earnings per share ('BEPS')
£26.8m (39.6)%
£23.0m (47.0)%For full details on the impact of the change in accounting treatment see note 33 to this announcement
Change
(58.7)%
Change
19.35p (49.5)%
Financial highlights
• Strong performance as a result of diversification strategy in action:
- Group organic revenue growth of 6.2%, comprising 4.9% in legal services and 18.4% in consultancy services
-
Consultancy services comprise £41.8m or 25.7% of total Group revenue (FY22: £21.3m or 15.5%) - an increase of 96.4%
• Underlying operating profit margin held up well at 15.4% (FY22: 16.4%), despite inflationary pressures throughout the Period
• Net assets increased by 4.0% to £78.1m (FY22: £75.1m)
• Proposed final dividend of 6.2p (FY22: 5.5p), taking total dividends for the Period to 9.5p per share (FY22: 8.5p)
Strategic and post-Period highlights Current trading and outlook
• Business Services Platform expanded and
further scale established in patent and trade mark attorney services with the acquisition of Symbiosis
• Total headcount at 30 April 2023 of 1,455 (FY22: 1,368), with increase in professional staff of 6.0% from 948 to 1,005
• Internal appointment of Victoria Garrad as Chief Operating Officer from previous position of Group HR Director
• Wider expansion of internal share ownership with FY23 result satisfying three-year performance criteria set out in the Group's first LTIP awards scheme
• Post-Period end acquisition of RJA Consultants, further expanding the Group's chartered surveying services and bringing further breadth to the Property Platform
• Post-Period appointment of Colin Jones as non-executive director who succeeds Suki Thompson as Chair of the Remuneration Committee
18.6%
11.1%
16.2%
12.0%
11.8%
4.0%
• FY24 has started in line with the board's expectations, with a good pipeline of work
• Integration of recently acquired businesses progressing to plan and in line with Platform strategy
• Encouraging pipeline of M&A opportunities
• The Group continues to deliver against the clear strategy set out at IPO, achieving growth and resilience through diversification, and strong returns for its stakeholders
1 Underlying operating profit and underlying profit before tax excludes remuneration for post-combination services, gain on bargain purchase, share-based payment charges, acquisition related amortisation and exceptional items
2 Adjusted fully diluted EPS excludes remuneration for post-combination services, gain on bargain purchase, share-based payment charges, acquisition related amortisation and exceptional items. It also adjusts for the future weighted average number of expected unissued shares from granted but unexercised share options in issue based on a share price at the end of the financial year
3 Net cash excludes IFRS 16 liabilities
How we support clients
At a glance
Property Platform
VINDEN
People Platform
Delighting our clients
Corporate PlatformBusiness Services Platform
Gateley's client focus is really good. Everyone we have worked with has taken the time to get to know and understand our motivations, how our business works, what the business model is and what the internal workings are like. That has really stood out for me."
Where you need us to be
With offices in 20 UK locations, and another in Dubai, we have the regional network to provide our clients with the advice they need on their doorstep. Often face to face meetings are the quickest way to overcome difficulties and resolve misunderstandings, and we will always travel to get the job done.
What makes us forward thinking?
The first UK commercial law firm to list on the London
Stock Exchange enabling is to develop our service offering to clients through acquisition
A professional services group which combines legal advice with consultancy expertise through our market facing Business Services, Corporate, People and Property Platforms
A responsible business committed to levelling up the world in which we work
Being straight talking about what matters, inside and outside of our business: supporting diversity and inclusion, encouraging potential and ensuring a sustainable future
Delivering results without ever losing sight of our
Gateley Team Spirit values
Working together
Proud that 45% of colleagues participate in our
Sharesave scheme vs. 25% UK average and 65% of all colleagues participate in at least one or more of our share schemes
Investors in People accredited
The only UK legal business to be ranked in the
Glassdoor top 25 best companies for senior leadership
Trusted to do
FY23 key client account management programme:450 new client relationships were nurtured
Over 2,000 hours of client investment time recorded
Over 90 Stellar Talks completed
Rated 5 star/excellent on independent legal review platform, Review Solicitors
Excellent181 reviews on
Room to breathe
Stonewall Diversity Champions and recognised as a top 150 national employer in the 2023 Stonewall Workplace Equality Index. Achieved the Law Society Gold Standard for our Diversity & Inclusion Charter
Active wellbeing programme and proud to be a signatory to the Mindful Business Charter
Engaged staff networks to support diversity and inclusion including Women in Leadership and Working Parents programmes
A Halo Code workplace
Disability Confident employer
Ambitious for success
Gateley: the professional services group
We enter a new chapter with a UK law firm first: we put aside the traditional equity partnership model and go Plc.
Our story
Our story starts in Victorian Birmingham - the then workshop of the world. Solicitors Stephen Gateley & Sons was founded to help forward thinking Victorians prosper.
Two centuries later, and our approach is still about thinking ahead. Looking to the future to ensure the success of our clients, our business and our people.
We acquire our first complementary businesses: tax incentive specialists Capitus Ltd and property 2016consultants Hamer Associates, forming Gateley
Capitus and Gateley Hamer.
We acquire three more businesses; GCL Solicitors, specialists in legal advice on residential developments; business psychologists, Kiddy & Partners and inward investment and international expansion experts, International Investment Services, since renamed Gateley Global.
We're UK Law Firm of the Year at the British Legal Awards; we acquire land referencing experts, Persona Associates and leadership development specialists, t-three.
We rank number 1 in the UK for M&A activity by deal volume. We acquire brand and reputation management experts Tweed Law, and built environment consultancy, The Vinden Partnership.
In July 2021 we acquire Tozer Gallagher, a leading practice of chartered quantity surveyors and construction consultants. Tozer Gallagher now sits within Gateley Vinden. Our decades of growth are recognised at the Birmingham Post Business Awards where we are named Professional Services Firm of the Year.
We make three new professional services acquisitions throughout the year. Patent Trade Mark and Attorney practices, Adamson Jones and Symbiosis IP join our Business Services Platform. Both companies enhance the development of complementary business services with an IP and brands focus. We further strengthen our established Property Platform with the acquisition of Gateley Smithers Purslow, a multi-disciplinary practice of building and quantity surveyors, principally in the insurance industry.
Our CEO, Rod Waldie is selected for The Lawyer's Hot 100 2023, featuring the crème de la crème of the legal world. Rod is recognised as leading the way for listed law firms, commended for his leadership and the business's successful cross-selling of both legal and consultancy services. In July we announce our latest acquisition with Gateley RJA joining our Property Platform. The company is aligned with the expertise of Gateley Smithers Purslow and Gateley Vinden, offering quantity surveying and project management services to the construction market but specifically to the affordable housing sector and property insurance market.
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Disclaimer
Gateley (Holdings) plc published this content on 22 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 September 2023 07:28:03 UTC.
