Listed legal services group Gateley will take a ‘cautious’ approach into the next six months as some sectors continue to face challenges. The firm – one of the few legal practices remaining on the London Stock Exchange – today described its six-month performance as ‘resilient’ given the current climate.
In the six months to 31 October 2023, profit before tax rose by 16.8% to £7.4m on revenue up 7.6% to £82m. The dividend of 3.3p per share is identical to the same period last year.
However the business has a net debt of £2.2m against the cash reserves of £1.1m it reported a year ago. It admitted that activity levels in the most recent quarter have been ‘subdued’, particularly for some transactional teams. Trading conditions, the half-year report noted, were ‘generally difficult’ throughout the last six months.
The company told investors that a combination of ongoing uncertainty and varying activity levels makes forecasts difficult, but it expects final results for the full year to be ‘broadly in line’ with the wider market.
Rod Waldie, chief executive, added: ‘Our H2 24 outlook reflects our cautious view on the market conditions we are currently experiencing. That said, I am confident in the ability of our excellent teams to continue to rise to the challenge for the remainder of this year, and beyond. We continue to invest in the business and remain confident and well-positioned to deliver our long-term ambitions.’
Gateley stressed that its operational focus has been aimed at current and future efficiency, with AI towards the top of the agenda.
At the same time, office closures are ongoing as part of a planned rationalisation strategy. The company has surrendered its lease for office space in Leicester and moved some teams in the east Midlands to its Nottingham office.
Shares in Gateley Holdings plc slipped 12% to 139p on the news.
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