One of the last remaining listed law firms has more than doubled its borrowing ahead of an expansion push, the stock market was told today. Gateley plc said the new revolving credit facility would provide ‘increased flexibility’ to support growth plans.
The facility provides total committed funding of £80m until April 2028 with options to extend this to April 2030, split equally between Bank of Scotland, HSBC UK, Barclays and NatWest.
The lending deal replaces the group’s existing £30m facility with Bank of Scotland and HSBC and is on improved terms and conditions, Gateley said. That facility was due to end this month after three years and had been payable at a margin of 1.95% above the average interest rate.
‘The facility will provide us with additional headroom and flexibility to continue with our stated strategy to grow organically and through acquisitions, further diversifying the group’s business,’ said chief executive Rod Waldie. ‘We continue to position ourselves to invest in and grow our platforms to provide an increasing breadth of services to our clients.’
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Gateley is one just a handful of legal businesses still trading on the stock exchange, after the collapse earlier this year of RBG Holdings and the acquisition last year of DWF by private equity investors. The company markets itself as a professional services group and says this ability to rely on different strands of income has set it apart from rivals.
Waldie added: ‘The aggregation of complementary legal and consultancy services on our four market-facing platforms of corporate, business services, people and property continues to differentiate Gateley, strengthen our appeal to clients and enhance our resilience.’
Earlier this year, Gateley reported strong financial results for the six months to 31 October 2024, with revenue and underlying profit before tax each up by more than 5%. Revenue from consultancy services grew each quicker and now makes up around 30% of the business’ total revenue.
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