Gateley (holdings) Share Discussion Threads

[tradertrev] 19/3/2024 11:51

Amazed the shares have fallen back this far. Recently added a few more.
Shares have now fallen 50% from the all time highs of Sep '21.

[wsm812] 11/3/2024 09:08

At some point the value of this "dog" will be realised and reflected in the share price It is ticking along nicely, financially, paying a decent divi and continues to make progress in a world that is becoming more and more litigious.

Like many no doubt, I am stuck with a paper-loss until such realisation occurs.

[jonwig] 17/1/2024 07:30

H1 results:



Making progress, but it's tough out there. Enough caution to dampen any market enthusiasm. Legal work is "subdued" but there's growth in complementary services. H2 unlikely to show much improvement.

Incidentally, the term "contentious work" appeared only once in the previous FY results. It appears six times here, and seems to be the most positive feature. Presumably it refers to dispute resolution?

[jonwig] 31/10/2023 09:10

No idea, but I've developed total immunity!

[wsm812] 31/10/2023 09:05

Who keeps negging you jonwig? Someone has a gripe against you! Internet points mean so much to some people haha

[jonwig] 31/10/2023 08:18

Yes, but you can't have everything!

[wsm812] 31/10/2023 07:58

Won't the issue of these share dilute our holding?

[jonwig] 31/10/2023 07:06

Good news announcement:

[jonwig] 28/10/2023 09:56

Dividend arrived yesterday (ii).

[jonwig] 26/10/2023 06:48

They are the only company I know which doesn't give a pay date when the dividend is announced.

[epo001] 25/10/2023 20:41

The AR states that it will be paid in October so I suppose an announcement is imminent.

[jonwig] 25/10/2023 20:04

Final dividend is 6.2p, went xd on 28/09. (Announced in the final results.) The dividend was passed unanimously at the AGM, so it's surprising a pay date hasn't been stated.

[epo001] 25/10/2023 19:09

There was a dividend paid last October and I was expecting a dividend announcement after the AGM. Is the silence significant? I don't remember any dividend RNS but presumably there now can't be one in October.

[jonwig] 23/10/2023 19:37

They don't say but MCap is the measure I think.

[epo001] 23/10/2023 14:36

How is that top 100 ranked? Market cap, order of preference?

[jonwig] 20/10/2023 08:17

IC is reviewing the top 100 AIM companies. GTLY is No.90:

Like many of its legal peers, Gateley (GTLY) has been struggling to entice investors since interest rates rose and recession fears mounted. The group trades on a forward price/earnings ratio of under 10, compared with a five-year average of 12.2, as worries about the resilience of listed law firms start to increase.

We may be underestimating this mid-market player, however. For starters, most of Gateley’s solicitors have remained busy this year, despite the company’s exposure to transactional work, and fees are up on an organic basis. Nor is Gateley entirely reliant on legal services. About a quarter of its turnover now comes from consulting, and this division is growing quickly: organic sales increased by 18.4 per cent in the year to 30 April 2023, and there appears to be an abundance of cross-selling opportunities.

Gateley isn’t as flashy or fast growing as some Aim constituents. However, it has a good track record, defensive characteristics, and solid prospects. Buy. JS

[dekle] 07/10/2023 08:35

I would love to see them put a pound on

[tole] 07/10/2023 06:42

Gateley (Holdings) (LON:GTLY) – AGM Due For Undervalued GroupIn early September Chairman Nigel Payne informed shareholders that the legal services group in the year to end April had continued its unbroken record of year-on-year revenue and underlying profit growth."This year has been another strong one for Gateley.Our people have excelled in client delivery, they have continued to overcome every challenge presented to them, and have delivered further strategic progress for the business, combining to generate an excellent set of results.As we focus on service line enhancing opportunities that meet our clients' needs and fulfil our strategy to build a broader professional services group, our acquisition pipeline remains strong, trading in the current year is in line with the board's expectations and we look forward to the immediate future with cautious optimism."On Tuesday 17th October he will be standing in front of shareholders at the professional services group's AGM.For the current year to end April 2024 analysts James Allen and Nick Anderson at Liberum Capital estimate further record revenues of £177m (£163m), raising pre-tax profits to £26.6m (£25.0m), but with slightly lower earnings at 15.5p (16.3p) and an eased dividend of 9.0p (9.5p) per share.They do see an increase in the 2025 year – with £192m sales, £28.9m profits, 16.6p earnings and a 9.8p dividend per share."Gateley remains one of the most oversold names in our professional services coverage, which we feel is undeserved given its strong track record of delivery since listing in 2015."Their price objective for the shares is a mighty 290p, compared to last night's close of just 144p, at which the group is valued at only £189m.A positive reaction from the AGM could help to boost interest in the group's shares.

[tole] 10/9/2023 21:23

https://masterinvestor.co.uk/latest/small-cap-catch-up-severfield-gateley-and-halfords/Gateley (Holdings) – Ongoing Track Record For DeliveryFor the year to end April Gateley continued its unbroken record of year-on-year revenue and underlying profit growth.The £205m capitalised company has over 1,400 people, some 1,000 of whom are fee earners, spread across offices in 15 UK locations and another in Dubai.The group's business is predominantly legal and professional services through Gateley Legal, advising over 5,000 clients across its four core business Platforms including Property, People, Business Services and Corporate.Chairman Nigel Payne stated that:"This year has been another strong one for Gateley.Our people have excelled in client delivery, they have continued to overcome every challenge presented to them, and have delivered further strategic progress for the business, combining to generate an excellent set of results.As we focus on service line enhancing opportunities that meet our clients' needs and fulfil our strategy to build a broader professional services group, our acquisition pipeline remains strong, trading in the current year is in line with the board's expectations and we look forward to the immediate future with cautious optimism."James Allen at the group's corporate brokers Liberum Capital has a Buy rating out on the shares, with a reduced Target Price of 290p a share (320p).For the current year to end April 2024 his estimates are for revenues to rise to £177m (£163m), while pre-tax profits could increase to £26.6m (£25.1m), but with earnings of 15.5p (16.3p) and covering a lower dividend of 9.0p (9.5p) per share.For the coming 2025 financial year Allen goes for £192m sales, £28.9m profits, 16.6p earnings and a 9.8p dividend per share.This group's shares have been oversold and now deserve a much higher multiple rating, especially so considering its impressive cash generation and its ongoing year-on-year revenue and profit growth record, despite the economic environment.The group will be holding its AGM on Tuesday 17th October.The shares, at 154p, really should be heading back up towards the 200p level achieved in late September last year, thereafter even higher.The shares are a strong hold for existing shareholders and a bargain for new ones too, we could well be having a re-run of my original moving Target.(Profile 18.05.20 @ 155p set a Target Price of 195p*)

[se81] 08/9/2023 12:10

thanks jonwig- they're certainly very boring compared to their listed peers (boring being good in this case)

there was also a little coverage in the times

hxxps://www.thetimes.co.uk/article/revenue-rise-drives-dividend-at-law-firm-2mwrpbc8z

[jonwig] 08/9/2023 09:31

se81, thanks for the Liberum comment - a few things spring to mind.

They were the first to go public, and spent a lot of time and effort in getting the transition right to suit existing partners. They don't seem to have had any problems there.

I believe they do more contract business and less litigation, which gives them better control of costs and bad debts.

Their main area is construction and property development, which gives them cross-selling opportunities for the companies in related services which they have taken over. Good long-term strategy!

Off topic, I visited their Leeds office earlier this summer (the German Consulate is in there). There was lots of activity, mostly young-ish people, and the only person formally and smartly dressed was the receptionist!

[se81] 08/9/2023 09:12

Does anyone have an opinion as to why GTLY have succeeded where all the other listed law firms have failed? Their peers seem to be putting out numbers riddled with adjustments and increasing indebtedness- what are these guys doing differently?

Does it even trade on a premium to others if you use unadjusted metrics?

Latest Liberum 24E would be quite impressive again if hit

Sales 177m
EBITDA 31.9m
EBIT 26.6m
PBT 26.6m
FD EPS 15.5p
DPS 9p

"Gateley’s FY 23 results are slightly ahead of revised
estimates with EPS increasing by 12% yoy, despite obvious
macro headwinds. The acquisition of RJA Consultants was
announced at the end of July for £6m, which is again
intended to further build out the diversification of the
business. We leave headline underlying numbers
unchanged, only making minor adjustments for the RJA
acquisition. Net cash reduced from £10.4m in FY 22 to
£4.3m in FY 23, as expected, mostly driven by extra
investment in Gateley Smithers Purslow. We nudge down
our net cash estimate from £8m to £6m in FY 24, purely due
to acquisition consideration, and believe Gateley’s strong
balance sheet remains a differentiator. Gateley remains one
of the most oversold names in our professional services
coverage, which we feel is undeserved given its strong
track record of delivery since listing in 2015. BUY, TP 290p"

[epo001] 06/9/2023 15:49

Everything I can find says the interim dividend was 3.3p, with a 6p final that makes 9.3 not 9.5 as is being claimed. My ISA records also show 3.3p, that's quite some innaccuracy.