Gateley (holdings) Share Discussion Threads

[jonwig] 11/6/2019 16:23

Not bad, sale above current bid:

"Gateley (AIM: GTLY), the law led professional services group, is pleased to announce that the Company's Employee Benefit Trust ("EBT") has today sold 600,000 ordinary shares of 10 pence each in the capital of the Company ("Ordinary Shares") to satisfy institutional demand at a price of 162p per Ordinary Share (the "Sale")."

[jonwig] 09/6/2019 10:22

GTLY covered in the Hardman Monthly, page 27:



Summary:

Gateley is a fully invested, consistent performer in a new and exciting space, which is likely increasingly to attract investor attention. It is a high-quality professionalservices group with significant growth potential, an excellent track record of delivery, a strong management team, and a strategy to diversify further in complementary professional services.

[bbluesky] 23/5/2019 13:38

epo 001 many thanks. Even better, of course and even more enticing. Just to show a comparison with a high quality and select breed:

Published on II this morning from Stockopedia


Name Yield % Dividend Cover DPS Increases (past 10 years) DPS Gwth % (current year) DPS Gwth % (forecast next year)

Sage 2.2 1.8 9 5 4.12
ABF 1.8 2.9 9 51.8 3.9
Diageo 2.1 1.8 9 4.9 6.4
Schr 3.7 1.8 9 0.9 0.2
Burb 2.4 2 9 2.9 5.2
Informa 2.9 1.9 9 7.1 5.6
L & G 6.2 1.8 9 7 6.9
Compass 2.2 2 9 11.3 8.6
STJ 4.4 0.7 9 12.5 7.1
Pru 3.1 2.9 9 5 5.79
Source: Stockopedia

[epo001] 23/5/2019 13:21

bbluesky, that differed from my spreadsheet which made it 4.54% and I spent some time with my calculator digging around. The HL yield is based on the last year's dividend (2.2+4.8p). My yield is based on the last 2 divi payments (2.6+4.8p). In the presence of rising dividends, HL will always understate the yield.

[epo001] 23/5/2019 12:11

jonwig, thank you.

[bbluesky] 23/5/2019 10:48

Which by Hargreaves Lansdown's calculations is currently a sumptuous 4.23%.

[jonwig] 23/5/2019 09:24

It's in the 2015 prospectus:

The Board intends to adopt a progressive dividend policy to reflect the expectation of future cash flow generation and long-term earnings potential of the Group.

Based on the above expectations, the Directors intend that the Group will pay an interim dividend and a final dividend to be announced at the time of the interim and preliminary results in approximate proportions of one-third and two-thirds, respectively, of the total annual dividend.

It is expected that the first dividend payment will be announced with the interim results for the year ending 30 April 2016.

It is the intention, subject to the availability of distributable reserves and where the cash flow requirements of the Company mean it is prudent to do so, to pay as dividends up to 70 per cent. of adjusted profits after tax. The Board may however revise the Group’s dividend policy from time to time in line with the actual
results of the Group.

I don't think it's been changed since.

[epo001] 23/5/2019 09:10

The RNS states that dividends will be in line with their stated dividend policy. I can't seem to find this dividend policy statement, anyone got a link?

[this_is_me] 23/5/2019 07:16

Yes, it looks good, sensible policies giving steady progress.

[jonwig] 23/5/2019 07:08

Yes, trading update:



"In-line" with expectations, so eps of 12.5 - 13p. General trend looks positive.

[bbluesky] 21/5/2019 17:41

Flurry of positive activity post lunch,so maybe an update tomorrow?

[jonwig] 05/5/2019 14:47

GTLY covered in the Hardman Monthly, p21:

[bbluesky] 01/5/2019 16:38

New high for Keystone Law Group today. And with Rosenblatts going strongly on good results, sector looks encouragingly strong.Trading announcement for GTLY last year 21 May, so not long now.

[jonwig] 22/3/2019 07:49

I haven't followed DWF Group which seems to be the largest of the bunch. I see the share price hasn't moved from the issue at 122p.

Of the existing listed firms, Keystone and Rosenblatt seem to have their own individual 'racy' characteristics which have been positive for their share price. Gordon Dadds (which I held for a few weeks) might have made a bad misstep with its big acquisition. That one looks dodgy to me.

Gateley might be thought the stodgiest and most conventional of the firms, which suits me fine. I went to an AGM a couple of years ago and was quite impressed.

The ii article, thanks:

[bbluesky] 22/3/2019 07:29

Good article on the sector in Interactive Investor Daily News (21 March) following the DWF IPO

"DWF IPO: Are these AIM law firms better value? by Andrew Hore "

[bbluesky] 20/3/2019 09:34

I see Keystone Law Group is at an all time high and powering on. Just a matter of time now for GTLY?

KEYS pe 82.5 and 0 divi, £141m market cap. GTLY 13.87 pe and 4.31 yield, £169 market cap

Knights PLC another law group on AIM similarly at an all time high...

[jonwig] 25/2/2019 17:44

I'd be reasonably happy at the way the share disposal went. They've handled the transition from LLP to PLC pretty skilfully so far, and they've just said:

"The Group is on track to deliver full year earnings in line with market forecasts, which were raised following the positive Trading Update announced on 23 November 2018, with revenues of not less than £102m and EBITDA margins in H2 19 not less than those achieved previously."

(Strange, as the year end is 30 April!)

[robsy2] 08/1/2019 08:30

Yes.I've joined the fray this morning.Looks like a pretty good company.
R2

[podgyted] 08/1/2019 08:21

Good result as foretold in the TU - confident outlook.

The share price has backtracked for a few months - this now looks good value IMHO.

[bbluesky] 12/10/2018 19:58

Apols something has not appeared: 4% points behind Labour among 18 to 29 year old in 2015, but today it is 40 points behind. If...

[bbluesky] 12/10/2018 19:55

Increasing receivables is always a worry, but that is what lawyers are for (and strong management)! As for the housing market,some of which has been tanking, I am a long term bull. From The Times: the Tories were 4% points behind Labour among 18 to 29 if the Tories can ever take their minds off Brexit, they are in for a rude shock, as to survivability, which is generally when politicians make decisions!

[jonwig] 11/10/2018 08:54

I think I said I'd sold because of the size of the receivables and the way they are increasing, with some overdue debts. GTLY are exposed to housing and construction, and I beleive they will be charging legal fees on alternatives to immediate billing. (See 2018 accs note 13.)

Has the Motley Fool author looked at this? Quite honestly, I don't see the balance sheet as 'rock hard', and generally find MF articles to be a bit superficial.

That said, the current share price does seem to discount a lot!