Six months after floating on the London Stock Exchange, Gateley has announced turnover has grown 10.9 per cent, from £26.7m to £29.6m.
Profit before tax has also increased by 11.5 per cent to £2.9m from a pro-forma figure of £2.6m. The biggest increase in revenue came from the firm’s corporate group, which grew turnover by 20 per cent.
Gateley CEO Michael Ward said: “The group’s ability to deliver a strong first half performance, in an improving but challenging market, whilst at the same time transitioning the business from an LLP to a Plc not only highlights the capabilities of the senior management team but also reconfirms our strategy of using our more flexible Plc status to enhance shareholder value through organic growth and strategic acquisitions.”
The financial statement also shows the firm’s operating costs have increased by 6.8 per cent to £25.3m. The number of fee-earners at the firm also increased to 386 resulting in an 8.1 per cent rise in personnel costs, from £16.7m to £18m. However personnel costs fell to 60.8 per cent of revenue. Gateley’s balance sheet now stands at £7m before its shareholder dividend is paid.
During the first six months of trading the firm has made eight lateral partner hires including former Pitmans managing partner Christopher Avery who was brought in to launch a new office in Reading.
Gateley became the first UK law firm to float on AIM in June and raised £30m through the placing of over 31,000 shares.
The flotation raised £5m for the firm while the firm’s selling shareholders raised £25m in gross proceeds. In order to replace the former partners’ capital Gateley also took out £10m of bank debt.
Gateley’s basic earning per share also increased 5 per cent to 2p. Following today’s announcement Gateley’s share price stands at 103.7p and it is offering an initial interim dividend of 1.895p. The dividend will be paid on 22 January 2016 to those who hold shares on 29 December 2015.
