Gateley (holdings) Share Discussion Threads

[2vdm] 13/9/2022 07:41

Agree jonwig. Well done to the BOD. Great results.

[jonwig] 13/9/2022 07:30

Outstanding FY results today:



PER of around 13.5x doesn't do justice.

[dekle] 05/9/2022 10:20

The only share I currently hold for IHT purposes is SNX. I'd like to add to it.

[tradertrev] 05/9/2022 08:29

martke, I too am on the lookout for IHT compliant AIM companies and Gateley is on my short list too. Do you know of a definitive list of such companies, from which to select?
With Gateley I will probably wait for the roughly annual placing of shares from former partners, which usually provides a good buying opportunity.

[jonwig] 05/9/2022 07:08

FY results 13 Sept.

[martke] 29/7/2022 16:36

Positive Investors Chronicle article yesterday.
July 28, 2022,By Jemma Slingo.
"The term ‘Steady Eddie’ isn't always a compliment. It implies a plodding competence; an uninspiring dependability. When it comes to investments, however, this is sometimes exactly what's needed."

The article warns of inflation (salaries of qualified staff and lawyers rising)and competition for staff. Praises diversification into related but non legal businesses. Says the 4 "platforms", Business, Corporate, People & Property, offers diversification and makes the overall company lower risk.

Concludes, "However, those in search of stability, resilience and composure in the face of a crisis – all at a good price – should look no further".

I am looking for Inheritance Tax compliant AIM companies, so "Steady Eddies" with decent dividends are fine for me. 2023 forecast; PE 11.9. Yield 5.12%

....... Sales.....PBTm...... EPS(p) .....DPS(p)
2020... 110 .......17.8...... 12.5........ nil
2021... 121 .......19 ........13.2........ 7.5
2022... 137....... 22........ 14.1........ 8.5
2023... 160....... 25........ 16.1........ 9.8
2024... 172....... 27........ 16.5 .......10.1

[petewy] 29/7/2022 16:08

Big coverage in the IC. Thinking going back in,

[jonwig] 13/6/2022 07:52

The old manjagement were very good, getting the partners-to-PLC transition done well, and the acquisition starategy into non-legal activities underway. New managemnt seem to be accelerating the process.

Other quoted law firms seem to be buying up only law firms; I think GTLY's strategy of integrating with related but unregulated areas is the right one.

[this_is_me] 13/6/2022 07:17

Continuing progress, particularly in the smaller consultancy side of the business.

[this_is_me] 20/4/2022 08:26

Yes It looks to be a good deal. A good price and a well run operation.

[jonwig] 20/4/2022 08:01

Acquisition, largest to date, and looks attractively priced:

[epo001] 23/3/2022 14:19

KGH down another 16% today, the KGH board is quite amusing at the moment. Lots of fantasists insisting they were big buyers yesterday as the fall was overdone.

[jonwig] 22/3/2022 08:33

Knights Group (KGH) has just put out a stinker of a trading update with shares down almost 50%. Reasons: Covid and WFH.

Unless Gately delivers a shock, I think it's already gone beyond these factors. (Update in May expected.)

[km18] 18/2/2022 14:11

...from last year...

Company overview:
Gateley was among the first companies to adopt the Alternative Business Structure, which allows non-lawyers to own and invest in law firms. The company provides commercial legal services together with complementary non-legal services. They could also act as trustees in pension scheme and provide specialist tax incentive advice. The company operate through four main platforms – property, people, corporate and business services. GTLY has more than 580 professional advisers and more than 1000 people across 11 offices in the UK. They have a rich portfolio of clients and part of their strategy is to grow by acquisitions. The resulting goodwill should not raise any red flags as it stands at less than 10% of total assets.
The financial of the company look solid. Revenue growth is at 12.6% CAGR however, EPS is only growing at 0.361%. ROCE for FY21 reached nearly 20% and Return on Capital is in the top quartile of the industry. Gearing is reasonable at 18.3% (excluding the IFRS 16) and divis have been rising continuously, reaching 7.5p in FY21.
We’ll keep today’s report short, while we wait for the interim results, that should be coming any day now. The Group’s primary business is legal, generating the majority of revenue, unlike other companies in the sector like RBGP. The yearly performance was very strong, with revenue increasing by 10.5% and Net CFO was £25.4m (nearly triple the Profit after tax). Outlook was also very positive with first months of the current period showing good pipelines of new work and even acquisition opportunities....

...from WealthOracleAM

[tradertrev] 08/2/2022 08:46

I've never come across a law-firm yet that was reticent about increasing their charge-out rates! The current situation in the stockmarket is all about pricing power relative to cost pressures and on that score Gateley should be fine.

[yf23_1] 08/2/2022 07:52

"stories of newly qualified people on big salaries"

I'd hazard a guess there may be cost pressures affecting margins.

[2vdm] 08/2/2022 07:33

I'm surprised that the share price seems to be so down, given the good news. I know it's not an "exciting share", but will consider adding at this level. Views appreciated.

[woodyjmw] 12/1/2022 19:11

Yes, law firms appear very busy, stories of newly qualified people on big salaries in the press, all seems to point to increasing revenues.

[jonwig] 12/1/2022 08:14

H1 results:



good, and well signalled in advance, so no surprises. Could make 15p in the full year, so forward PER is about 15x. Good value I think.

[tradertrev] 30/11/2021 10:19

Interesting article today:

I doubt hardly any of these firms will make it to a listing - unlike Gateley their models require most of the revenue to end up in partners' pockets. It will be extremely difficult to transform their business models to accommodate a sufficient share of profits and dividends being allocated both to longer term investment and to outside capital.
If any of them do make it, I'd be surprised if they are successful investments for outsiders.

[2vdm] 24/11/2021 07:55

Yes an excellent update

[jonwig] 24/11/2021 07:13

Trading update, all good:

[tradertrev] 20/10/2021 18:41

Most of them probably were already snapped up by the time the announcement was made. They only make the announcement when they know it's going to go smoothly.

[jonwig] 20/10/2021 17:12

Proposed placing of 5m existing shares at 220p shouldn't arouse any concern. They did the same in Feb 2020 (4.75m at 200p). I'd be surprised if the shares weren't snapped up.