Gateley (holdings) Share Discussion Threads

[jonwig] 17/7/2018 06:51

I sold mine in April. Perhaps a mistake.

But the reason: receivables. I see these are up again and on a closer look more might be well overdue payment terms. In a recession there may be write-offs, and it's worth noting that the building trade is their main client base.

[eentweedrie] 17/7/2018 06:20

and there they are - bloody decent!

[eentweedrie] 13/7/2018 18:06

Yes expecting decent results on Tues

[darryn1] 13/7/2018 13:00

GCL should propel this even higher.

[eentweedrie] 06/7/2018 10:59

just bought in here...looking good for results

[speedsgh] 21/5/2018 13:18

Proposed Acquisition of GCL Solicitors LLP -

Gateley (Holdings) Plc (AIM:GTLY), the national commercial law and complementary professional services group, is pleased to announce it has entered into an agreement to acquire the business and assets of GCL Solicitors LLP for a total consideration of £4.15 million. GCL specialises in legal advice for land and property clients. Completion is scheduled for 23 May 2018.

On completion, GCL will trade as Gateley Plc from its existing offices in Guildford, Surrey. This strategic acquisition is the third and largest that Gateley has made since the Group's admission to AIM in June 2015; the first being the acquisition of Gateley Capitus swiftly followed by Gateley Hamer. GCL will be the first legal business acquired by Gateley since IPO.

Background to GCL

GCL specialises in legal advice on residential developments and works with some of the UK's top housebuilders as well as promoters and landowners. GCL is also one of the leading law firms who act for overseas private investors buying new build residential properties in the UK, primarily in and around London.

GCL is a profitable and well established business which has been trading since the 1970s and converted to an LLP in 2009. In the year ended 31 March 2018, GCL generated revenues of £6 million and corporatised EBITDA of approximately £0.6 million. The Board expects the acquisition to generate operational synergies and be immediately earnings enhancing.

Terms of the acquisition

Under the terms of the acquisition agreement, Gateley will pay a total consideration on completion of £4.15 million. The total consideration will be split £2,282,500 payable in cash and £1,867,500 through the issuance of 1,164,276 new ordinary shares of 10 pence each in Gateley ('Ordinary Shares') at an average price over the past 5 days of £1.604. The cash consideration is being funded by the extension of existing Group bank facilities repayable over the three years from completion. In addition, £1.32 million of liabilities owed to the former members of GCL will be converted into loans of the same amount, repayable by Gateley over the next two years following completion.

Acquisition rationale

The acquisition of GCL is consistent with Gateley's IPO growth strategy to acquire legal and non-legal businesses that offer complementary professional and other specialist services across Gateley's five business groups. On completion of this transaction, Gateley will add 79 new members of staff to its Property Group including 6 partners.

The GCL team will integrate into Gateley's existing Residential Development team which already comprises 119 staff and sits within its Property Group.

The addition of GCL will position Gateley's offering as one of the UK's largest specialist Residential Development teams. This national strength in depth will enhance the Group's existing offering in London, which was established in 2015, as well as continue its expansion in Reading, following the recent appointment of a new partner in March 2018, and support the recent redeployment of specialist teams into Manchester and the East Midlands during 2018.

Gateley currently works with 18 out of the top 20 national housebuilders providing support on planning, land acquisition and sales of plots. When GCL joins Gateley, the Group's enlarged plot sales team will advise on circa £2.5 billion worth of plot sales annually. In addition, Gateley has been considering investment in technology to enhance further the plot sales service of its business. This acquisition will enhance its technological capabilities through GCL's existing platform.

The acquisition will also add further strength to Gateley's wider Real Estate Advisory Services (REAS) offering which provides specialist, legal and complementary services to its property clients, combining expertise from property legal advisors at Gateley Plc, with specialist advice from its capital allowances business, Gateley Capitus and its compulsory purchase and utilities compensation business, Gateley Hamer.

Commenting on the acquisition, Michael Ward, Chief Executive Officer of Gateley, said:

"I am delighted to welcome GCL to the Group. The acquisition will further strengthen our leading position in the Residential Development sector nationally and provide us with a substantial presence in the southern market, which we see as critical in developing a full service offering for our clients.

"There is a structural under supply of new housing in the UK and we see this as a market that will remain strong. The South East in particular will continue to be a significant engine for housing growth for the foreseeable future.

"The acquisition allows us to offer a greater depth of specialism and expertise in all aspects of the residential development market. We can now match our national office network to our Residential Development clients' networks with 7 Residential Development teams operating across the country. There are also clear opportunities across the Group from this strategic acquisition, not least for Gateley Hamer and Gateley Capitus and we look forward to welcoming everyone from GCL into Gateley."

Commenting on the acquisition, Tony Inkin, Managing Partner of GCL said:

"We are excited to be joining Gateley who have an outstanding reputation as the market leaders for legal advice in the Residential Development and wider property sector. We have a great opportunity with our combined areas of expertise to build an unrivalled offering for clients in the South of the UK and to strengthen further the private property investment part of our business. We are looking forward to integrating with the team and also benefitting from being part of a wider professional services group that will open up many new opportunities for our existing team and clients."

[speedsgh] 21/5/2018 13:16

Trading Update -

Gateley (AIM:GTLY), the national commercial law and complementary professional services group, is pleased to announce an update on trading ahead of its audited results for the financial year ended 30 April 2018.

Trading in the second half of the financial year has remained strong and the Group performance for the full year is in line with market expectations. The Board is delighted with revenue and profit growth in the year which has enabled the Group to not only increase its returns to shareholders, but also to further invest in the business. Subject to audit, revenue for the financial year ended 30 April 2018 will be not less than £84 million (2017: £77.6 million) and adjusted EBITDA* is expected to be not less than £16 million (2017: £14.9 million).

The Group has recorded growth across all of its segmental reporting lines, reflecting Gateley's strength in depth and the benefits of years of focussed investment. Another year of measured investment over the past twelve months has resulted in the Group's Property and Corporate businesses each recording not less than 15% fee growth. As we seek further expansion opportunities through complementary professional services, our clients are benefitting from the increased breadth, depth and scale of our expert advice. Our staff numbers continue to grow as we invest in people, to support the further expansion of professional services across our national offering.

The integration of our two already acquired complementary businesses has progressed well and we are delighted with today's announcement of the exchange of contracts in advance of the strategic acquisition of the trade and assets of GCL Solicitors LLP which brings further service benefits to our clients and cross selling opportunities to both our legal and complementary services.

The Board expects to recommend a final dividend in line with its stated dividend policy of distributing up to 70% of its after-tax profits. The Group's audited results for the year ended 30 April 2018 will be announced on 17 July 2018.

Michael Ward, Chief Executive Officer of Gateley, commented:

"I am delighted with the strong performance of the business this year and the growth we have achieved in both fees and profitability. The Board recognises how hard our teams have worked again this year and wishes to thank everyone involved in Gateley's continued success.

"Following another year of strong momentum, and as separately announced today, I am delighted with the imminent opening of a new Gateley office in Guildford after exchanging contracts to acquire the business and assets of GCL Solicitors LLP. This strategic acquisition brings additional national reach and augments our already strong position in the Housing sector. Yielding immediate benefit to our mutual clients, the acquired business will link well with our Reading and London offices and we are excited about the benefits this will bring to all of our stakeholders."

[tdog1975] 21/5/2018 09:20

Good work - love this share and hope to love it for years to come

[martywidget] 02/5/2018 15:00

In case no-one has seen this recently:

City law firm Rosenblatt has confirmed that it plans to float in London next month, which will make it the fourth English law firm to go public.

...Rosenblatt confirmed... in a statement to the London Stock Exchange that it plans to float on London’s Aim market on 8 May...

...A successful listing would make it only the fourth English law firm to float, following Gateley, Gordon Dadds and Keystone...




Schedule One - Rosenblatt Group plc
EXPECTED ADMISSION DATE:
8 May 2018




[Similarly, another float]:

Sunday 29 April 2018 1:59pm
Litigation funder Vannin Capital eyeing multi-million pound London float

Litigation funding giant Vannin hires banks for bumper float


Sunday 29 April 2018 1:59pm
Litigation funder Vannin Capital eyeing multi-million pound London float


Regards.

[epo001] 02/5/2018 13:11

In the accounts under operating segments, what is the difference between segment revenue and segment contribution (about 1/3 of 'revenue')? Which is real and what is the other one doing there?

[jonwig] 02/5/2018 07:06

@ tsmith2 - I don't follow charts, but came to a similar conclusion. The level of receivables is beginning to look too high, with some under impairment. Its biggest work sector is construction, which has been weak for some time - in recession even.

[tsmith2] 01/5/2018 09:03

Have issued a lot of paper, quote of which is subject to lock-ins which come to an end.double top formation on charts too.not keen

[garbetklb] 16/3/2018 18:26

The answer from the FD was a bit terse - pointing me to their investor page. I refrained from pointing out that 16th was hardly "early March" per the results RNS.....

[jonwig] 16/3/2018 06:26

One of IC's tips for the week. Summary:

As the UK’s first listed law firm, Gateley has already started to deliver on its aspirations of organic growth and the attraction of new recruits. Through continued investment and the potential for future acquisitions, Gateley has the chance to consolidate a large but fragmented addressable market. Moreover, it currently trades on an undemanding forward multiple of 15, while offering an attractive and growing yield. In our view the stock looks undervalued. Buy.

[jonwig] 16/3/2018 05:34

More listed law firms to come?

[garbetklb] 09/3/2018 07:59

I've just emailed the FD asking re dividend payment - Stockopedia showing 2nd March, but I've not received anything via Share Centre or Alliance Trust. Has anyone else?

[jonwig] 18/1/2018 11:40

ARDEN PARTNERS:

The group is among a tier of mid-market domestic law firms set to consolidate a highly fragmented and diversified UK professional services market. Further to regulatory change, traditional law firms such as Gateley now have a “level playing field” opportunity to enhance their earnings quality beyond legal revenue streams. As such, the group is in a position to use its shares both as an acquisition currency and as a recruitment tool, which, we believe, will prove a unique selling point to professional staff in a highly competitive labour market; lateral partner hires – a key driver to organic growth - have increased markedly post IPO.

The quality of earnings was highlighted in H118 in which period organic growth totalled 8.5% reflecting robust activity levels – Corporate and Banking & Financials sectors were both +20% - and partner recruitment in recent periods. Including an incremental uplift from the Hamer acquisition total H118 revenues were up 9.8%.

We believe the UK stock market will increasingly appreciate the investment merits of the legal sector within the professional services landscape and we believe this sub-sector is poised to mirror the premium ratings afforded with growth companies in the professional services sector.

[jonwig] 05/12/2017 09:32

ARDEN PARTNERS:

Revenue growth of 9.8% to £38.6m highlights robust activity levels including an incremental uplift from the Hamer acquisition; stripping this out, organic growth totalled 8.5% and builds on the strong organic growth momentum delivered in FY17.

Revenues are typically skewed to the second half; this resulted in a H1;H2 revenue split of 45.3%;54.7% in FY17. We note that H118 revenues of £38.6m equate to 46.5% of our forecast £88m revenues for FY18. Activity levels (hours booked but yet to be billed) are running ahead of revenues providing good confidence on H218 outcome.

Deal flow has held up well into FY18 to date with particularly good activity levels in Corporate (H118 revenue +23.6%), Banking & Financial (H118 revenue +19.9%) and Property (H118 revenue +10.2%, 6.7% organic). Employee, Pensions and Benefits was 5.3% ahead whilst Business Services was down 3.3% largely reflecting timing issues that should result in growth in H218.

As such, core markets clearly continue to perform well supported by the growing headcount that is 6.4% ahead at 763 employees, including six new legal partner hires in the period. The rate of partner hires is meaningfully ahead of that achieved pre-IPO. We believe this is a testimony to the success of the strategy to move from LLP to a plc with the group’s profile and ability to attract new fee earners is meaningfully enhanced by the non-traditional approach to corporate structure for a UK law firm.

Adjusted EBITDA up 5.8% ahead at £5.3m. H118 EBITDA margin was slightly lower 13.7% (H117; 14.1%) reflecting strategic recruitment and investment in new, complimentary [sic] service lines.

[jonwig] 05/12/2017 08:33

N+1SINGER:

Gateley has produced double-digit H1 revenue growth with adjusted EBITDA 6% up on the prior year, a little better than suggested by the recent trading update. The company continues to invest in future growth (in particular, launching a new Global Mobility Service), hence a continuance of last year’s trading pattern of H1 EBITDA lagging both H1 revenue growth and full year expected EBITDA growth. Operating cashflow continues to be healthy, albeit not as strong as internally budgeted and the H1 dividend has been maintained at 2.2p, in line with unchanged EPS at 3.1p.

Management expects the full year result to be in line with market expectations so consensus estimates are unlikely to change. With double-digit full year EPS growth in prospect, the shares continue to look good value on cal’18 PER of 15.2x
and Gateley’s distinctive business and remuneration model continues to work well.

[jonwig] 05/12/2017 07:21

Interim results:



Flat eps disguise growth in turnover and investment in recruitment and future growth.

[sharesoc] 03/12/2017 18:31

There is a blog post which mentions Gateley Holdings available here:

[jonwig] 27/11/2017 07:17

KEYS should open at a premium to the 160p offer price today.

[jonwig] 27/11/2017 07:14

"In-line" trading statement:



Consistent in-line statements right from the IPO I think. No more acquisitions on the horizon?

"We continue to invest in our people through the release of further share incentive option schemes where participation remains strong across professional and support staff alike." I'm pleased they recognise the importance of this in an overwhelmingly "people business", and I accept the dilutive effect of aligning staff with outside shareholders.

Results next month.

[speedsgh] 16/11/2017 14:24

Keystone Law Group plc: Announcement of Intention to Float on AIM -