Gateley (Holdings) PLC Payment of earn out consideration (2019M)

TIDMGTLY

RNS Number : 2019M

Gateley (Holdings) PLC

13 September 2019

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon publication of this announcement, this information is now considered to be in the public domain.

Gateley (Holdings) Plc

("Gateley" or the "Company")

Payment of earn out consideration for Kiddy & Partners

Gateley (Holdings) Plc (AIM:GTLY), the legal and professional services group, is pleased to announce, in accordance with the acquisition agreement of Kiddy & Partners ("Kiddy"), that a total payment of GBP1,249,863 has been approved by the Board today, being the earn-out payment made in respect of the trading performance of Kiddy for the period from 1 January 2018 to 30 April 2019. As stated in our previous RNS issued on 9 July 2019, the acquisition agreement provides for further earn-out payments to be made by reference to Kiddy's trading performance for the following twelve month periods to 30 April 2020 and 30 April 2021. The aggregate maximum remaining payment outstanding under the acquisition agreement is GBP364,676. The earn-out consideration is split equally between cash and shares. Accordingly, 389,608 ordinary shares of 10p each in Gateley ("Ordinary Shares") have been issued and allotted and application has been made to London Stock Exchange plc for these shares to be admitted to trading on AIM ("Admission"). Admission is expected at 8.00 a.m. on 18 September 2019.

Michael Ward, CEO of Gateley, said:

"We are delighted with the excellent performance of Kiddy since its acquisition in July of last year. Kiddy broadens and strengthens our people services offering within our employment, pensions and benefits group. Results to date demonstrate clear opportunities for us to collaborate and deliver integrated advice and services to a broader set of large-scale employers across a wide range of industries. Kiddy has grown almost 37% ahead of original expectations, generating GBP3m of fees since acquisition. Kiddy represents our first acquisition in the exciting Human Capital sector, which when placed alongside our global mobility and Entrust pension trustee operation, moves our business further forward, offering employers a range of high class legal and consultancy services."

Total Voting Rights

The new Ordinary Shares being issued will rank pari passu with the existing Ordinary Shares in issue. Following Admission, Gateley's total issued share capital will comprise 111,344,709 Ordinary Shares. This number may be used by shareholders in Gateley as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of Gateley under the FCA's Disclosure Guidance and Transparency Rules.

 
 Enquiries: 
 Gateley (Holdings) Plc 
 Neil Smith, Finance Director                       Tel: [phone] 
                                                     0196 
 Nick Smith, Acquisitions Director and Head         Tel: [phone] 
  of Investor Relations                              1665 
 Cara Zachariou, Head of Corporate Communications   Tel: [phone] 
                                                     0074 
                                                     Mob: [phone] 
                                                     684 946 
 finnCap - Nominated adviser and broker 
 Matt Goode / James Thompson (Corporate             Tel: [phone] 
  Finance)                                           0575 
 Andrew Burdis (ECM) 
 N+1 Singer - Joint broker                          Tel: [phone] 
                                                     3000 
 Richard Lindley / Peter Steel (Corporate 
  Finance) 
 Rachel Hayes (Corporate Broking) 
 Belvedere Communications Limited - Financial 
  PR 
 Cat Valentine ([e-mail])         Mob: [phone] 
                                                     769 078 
 Keeley Clarke ([e-mail])            Mob: [phone] 
                                                     816 525 
 
 

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September 13, 2019 02:00 ET (06:00 GMT)