Gateley (LSE:GTLY) delivered a record financial performance for FY26, marking its eleventh consecutive year of revenue growth. Total revenue increased 8.2% to £194.3 million, including organic growth of 6.2%, while contribution margin improved despite a slight decline in adjusted operating margin. Statutory operating profit almost doubled during the year and profit before tax rose 20.4%. However, higher working capital requirements, acquisition-related spending and increased net debt contributed to a 44.2% reduction in the total dividend per share as the company rebased its shareholder distribution policy.
During the year, Gateley completed the integration of Groom Wilkes & Wright ahead of schedule, expanded investment in Austen Hays and its Dubai office, and strengthened its team through 13 senior lateral hires while reducing overall fee-earner numbers. Looking ahead, the group is targeting an adjusted operating margin of at least 13.5% through tighter pricing, cost management and improved returns from recent growth investments. Management said trading in FY27 has started in line with expectations.
The company also announced that Chief Executive Officer Rod Waldie will step down from his role and leave the board on 1 August 2026 for personal health reasons. He will remain available during a transition period to support the business. Independent non-executive director Martin Pike has been appointed Interim CEO while the board begins the search for a permanent chief executive and an additional independent non-executive director to chair the audit committee.
Chair Edward Knapp said the board remains focused on improving margins, strengthening the balance sheet and working capital management, delivering profitable growth and generating attractive returns for shareholders. Martin Pike said he intends to work closely with the existing leadership team to continue executing Gateley’s long-term growth strategy during the transition.
Gateley’s outlook is tempered by pressure on profitability, cash flow and weak technical market indicators. However, the company’s relatively low valuation and attractive dividend yield continue to provide support for the investment case.
About Gateley (Holdings) Plc
Gateley (Holdings) Plc is a UK-listed professional services group providing legal, property, corporate finance and consultancy services. The company has built a diversified business model that combines legal expertise with complementary advisory services, serving clients across a broad range of sectors.
The group continues to expand through strategic acquisitions and investment in specialist businesses, including Austen Hays and its international operations in Dubai. By broadening its service offering and strengthening its professional advisory capabilities, Gateley aims to deliver sustainable long-term growth while adapting to changing client needs and market conditions.
Leave a Reply