First listed law firm Gateley delivers strong results as it looks for further acquisitions
Listed law firm Gateley has boosted revenue 20 per cent and profit 18 per cent in the six months to 31 October.
The Birmingham-headquartered firm, which became the first UK law firm to go public when it floated in 2015, delivered revenue of £46.4m and profit before tax of £5m for the period.
Gateley's share price rose nearly seven per cent today to 139p.
The firm said that in its first three years since its initial public offering (IPO) it had grown turnover 47 per cent and boosted adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) 46 per cent.
It said it is on track to hit its full year earnings forecasts of £102m and Ebitda margins that are equal to those previously achieved.
Speaking to City PM Gateley chief executive Michael Ward said: “If you had said to us at IPO – we never promised to grow 50 per cent – if you said we could get there we would have been delighted with that so we have got to be delighted with it today.”
Ward said the market was growing more used to the concept of a listed law firm – Gateley has since been joined on the public markets by four further firms – and said that this was leading to more opportunities as brokers and analysts became more knowledgeable about the sector.
“We are looking at more [opportunities] now than we were three years ago and I hope the message gets around – the phone keeps ringing.”
Since its float the firm has acquired both legal and non-legal businesses, the most recent of which GCL Solicitors and Kiddy & Partners, takes the group to sixteen legal and five non-legal business lines.
Ward said that the firm “does not rule anything out” in terms of further growth plans.
“We look at everything on its merits, it happens to be that of the acquisitions to date the largest turnover was GCL at £6m, but that doesn’t mean to say we have a limit.”
Last year City law firm Rosenblatt became the fourth UK firm to go public while UK top 30 law firm DWF is targeting a main market float in the first quarter of this year.
DWF had revenue of £236m last year, meaning that if it gets its float away, it will be by far the largest UK law firm to have gone public.