Press release Nov. 27, 2020
Trading update: resilient financial performance with activity now above pre-COVID levels
Gateley (AIM:GTLY), the legal and professional services group, is pleased to announce a trading update ahead of its half year results for the six months ended 31 October 2020 (the "Period"), which will be announced in January 2021.
The Group has demonstrated considerable resilience throughout the Period as a result of its well-diversified service lines, generating revenue of not less than £50.0m as compared with £51.8m for the prior year. We are also pleased to report that the Group's activity levels and revenue generation continue to follow an improving trend with monthly activity during September and October being in excess of the prior year comparable periods.
This resilient revenue performance combined with the Board's swiftly implemented cost-reduction initiatives put in place during the early stages of the COVID 19 pandemic, have combined to yield an underlying adjusted profit before tax[1] of not less than £7.0m for the Period, compared with £6.6m for the prior year. The Group has significant liquidity with net cash of £9.6m at the Period end (FY20: Net debt £0.9m).
Following a resilient first half performance, the business has entered the second half of the financial year with a strong sense of optimism, tempered only by possible further impacts from the global pandemic and Brexit. The Board looks to the future with confidence.
[1] Underlying adjusted profit before tax excludes share based payment charges, amortisation and exceptional items.
Commenting, Rod Waldie, Chief Executive Officer of Gateley, said:
"I am delighted with the Group's operational and financial performance in the first six months of the financial year. Our loyal and dedicated staff have continued to serve our clients to the highest standard whilst working even more closely together across our Platforms to attract new work, in what has become a "new normal" trading environment.
"The Group is successfully leveraging its breadth of diversified service lines that are increasingly important to our clients. Our revenue pipeline continues to strengthen and this, combined with the many operational efficiencies and cost reduction measures that we have introduced in 2020, leads me to be confident that, despite the circumstances, the Group is well positioned to deliver, to all of its stakeholders, a strong performance for the financial year."
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Mentioned in this update
Rod Waldie
CEO & Partner