Gateley (holdings) Share Discussion Threads

[qs99] 04/5/2017 14:16

fingers xd it can zoom through recent high and keep going this time!

[qs99] 04/5/2017 13:19

thanks jonwig, looks like it is perking up again today....

[jonwig] 02/5/2017 15:42

This website used to have excellent discussion boards, which it's dropped. I don't think this article adds much, apart from exposure:

The share price performance of legal services business Gateley Holdings (LSE: GTLY) has been exceptional in recent months. It has risen by 23% since the start of the year, and by 61% in the last year. Despite this, it trades on a PEG ratio of only 1.7 owing to its forecast growth rate of 9% in the current year. This would follow a similar rate of growth in each of the last two years, which indicates that the company offers a relatively robust and sustainable growth profile.

In addition to capital growth potential, Gateley Holdings is also an attractive income stock. It currently yields 4.3% from a dividend which represents 71% of earnings. This indicates that dividends may increase at a faster pace than the company’s bottom line over the medium term, which suggests a double-digit dividend growth rate may be on the cards.

With inflation set to rise and the stock market being relatively high at the present time, Gateley Holdings has obvious potential for growth and income investors. Its shares may have risen in price in recent months, but that upward trend may be set to continue in future months.

[qs99] 18/4/2017 13:26

pushing through that £1.60 barrier again IMO

[qs99] 06/4/2017 09:18

ok, so a few months ago, thanks mate. so must be something else as it really didn't seem to move for a long time, now up 20%+!

[jonwig] 06/4/2017 09:03

QS - not much coverage in IC. Two recent articles summarised:

• 19 Jan 2017: attracted much attention when it became the UK's first listed law firm, but since then it's chugged along below the radar. The group spent much of 2016 using its 'PLC' status to acquire businesses outside of the traditional legal spectrum, in turn helping to diversify its income stream.

• 6 Dec 2016 (H1 results): Unsurprisingly, Gateley's shares rose 6 per cent on the back of these numbers as the group appears to be taking full advantage of recent acquisitions, while also rewarding shareholders handsomely. With the shares still at just 12 times forward earnings, and coupled with a forward dividend yield of 5.6 per cent, we remain buyers.

[qs99] 06/4/2017 08:47

maybe expectation of better results? Yield IMO is still pretty good around these levels....has been tipped I am sure by usual IC etc over the past months, but this looks like break-out territory IMO....GLA

[qs99] 06/4/2017 08:47

maybe expectation of better results? Yield IMO is still pretty good around these levels....has been tipped I am sure by usual IC etc over the past months, but this looks like break-out territory IMO....GLA

[jamgr0] 05/4/2017 15:27

I wonder what could be driving this rise

[jonwig] 05/4/2017 14:44

Results dates from last year, July and December. There was an trading update on 19 May last.

The only broker forecast I can find is Cantor Fitz. with target 145p dated Aug 2016.
2016 Revenue £75.10m, PBT £13.00m, eps 9.80p, div 6.94p. They won't update until they have some firm numbers, I feel.

[qs99] 05/4/2017 13:51

yup, just bumped up some more....looking good for £2 over the coming weeks IMO...great yield as well.

[jamgr0] 05/4/2017 12:50

Nice rise today, hopefully this is a leg up from 150

[qs99] 05/4/2017 10:04

showing great strength here IMO

[qs99] 24/3/2017 06:32

and Yield is decent IMO, a good ISA stock DYOR

[jamgr0] 23/3/2017 23:14

No problem, it's also useful for showing the kind of deals going through. There's many decent companies on that list.The billing is as free as market forces allow, though corporate clients are increasingly looking for fixed fee arrangements for specific work, and to package work together to prevent costs running high. They're more savvy. But IMO that's one reason Gateley are in a good position because they can offer other business services like tax, surveying and pensions besides bog standard legal advice. So essentially they give more bang for your buck and that's what corporate clients are looking for particularly in a crowded market. The fact Gateley is trail blazing, if you will, really stands it apart as a firm. Certainly expecting the figures later this year to be promising.

[jonwig] 23/3/2017 09:09

Jamgr0 - thanks for that. As I said, I couldn't find it on the Investors section of the website, but arguably it should have been there as it supports in detail the rather bland phrases they put in front of shareholders, such as "... a national commercial law firm and complementary business services group".

Obviously shareholders are more concerned with earnings! For personal client work, there are national fee guidelines. Is there any equivalent for corporate work, or is it a free market?

[jamgr0] 22/3/2017 16:31

It is, and can be found at: The claim about being in the top 3 on transaction volume was more than mere fluff, as it came from Experian Corpfin. Though I take your point. It also depends on the profits these deals are generating.

[jonwig] 22/3/2017 14:17

Jamgr0 post #121 - is the document you refer to in the public domain? I can't find it on the website.

"... Gateley in the top 3 UK corporate legal advisers based on transaction volume." I'd hazard that ones choice of legal advice is quite strongly driven by word-of-mouth recommendation: I've certainly chosen (or rejected) our personal solicitors on that basis.

[skinny] 22/3/2017 13:47

Speedsgh/QS99 - thanks.

[qs99] 22/3/2017 13:43

From last year's prelims....

"The Board has adopted a progressive dividend policy to reflect the expectation of future cash flow generation and long-term earnings potential of the Group, paying up to 70% of profits after tax each year. Following the announcement of our interim dividend of 1.895p per share that was paid in January 2016, the Board proposes a full year final dividend at its Annual General Meeting on 21 September 2016 of 3.764p per share, which if approved, will be paid on 28 September 2016 to shareholders on the register at the close of business on 2 September 2016. The shares will go ex-dividend on 1 September 2016."

Yield IMO is attractive....basic premis in life IMO is that lawyers always make money! hehe....DYOR

[speedsgh] 22/3/2017 13:42

Skinny - As per their Admission Document...



19. Dividend policy
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.

[skinny] 22/3/2017 13:34

Can someone point me to the dividend policy - all that I can find on their site is the following.

"Over the last ten years Gateley has grown its revenue by a compound aggregate growth rate of 14.3% and operating profit by 14.8%, with strong cash generation and a typical cash conversion of 95% every year over the last three years supporting both growth aspirations and an attractive dividend policy."

[qs99] 22/3/2017 13:16

nicely through £1.50....

[qs99] 22/3/2017 10:21

wow, thanks jamgr0 that should mean could fee drop through then IMO....let's see

[jamgr0] 22/3/2017 10:12

Certainly established a support around the 1.40 level. The company released a report recently on corporate deals in 2016 which makes for very promising reading. One measure put Gateley in the top 3 UK corporate legal advisers based on transaction volume. Hopefully this is reflected in this year's results.