Aim-listed law firm Gateley reports bumper profits in first set of results since IPO
Gateley reported today profits before tax for the six months ended 31 October 2015 of £2.9m, up 11.5 per cent from £2.6m in 2014.
The law firm, which started trading on Aim in June, also revealed that revenue had increased to £29.6m, a rise of 10.9 per cent from £26.7m the same time last year.
The firm has also advised on 123 corporate deals during the period, compared to 117 in 2014, with a total value of over £970m.
Meanwhile, staff numbers at the firm have also been boosted, going from 604 to 622 in the six-month period.
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Michael Ward, chief executive of Gateley, said he was "delighted" with the company's performance, adding:
The group’s ability to deliver a strong first half performance, in an improving but challenging market, while 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.
Shares in the company rose modestly in the morning, trading at up 1.5 per cent in the early morning.
Speaking to City A.M, Ward remarked that, although he was happy to be first UK listed law firm, it "brings certain pressures in terms of everyone’s interest and we are breaking new ground.
"But we’ll see really. I wouldn’t put anyone off, provided they’ve got the will of their partnership to want to go forward and, if we have two or three, it would be quite nice really [as] we’d start developing financial data and models."
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When City PM asked the Law Society what the results meant for law firms trading as listed companies, its chief executive Catherine Dixon said:
The Law Society supports all solicitors, whatever business model they choose to use and wherever they work. We encourage innovation within the legal sector, which allows solicitors to develop a business model that best meets their clients’ needs and gives them a competitive edge in a challenging marketplace. Flexibility and innovation build resilience into the solicitor profession in England and Wales, contributing to our global standing as the legal jurisdiction of choice.