21st May 2018 12:40
LONDON (Alliance News) - Gateley Holdings PLC said Monday it entered an agreement to acquire the business and assets of legal advice firm GCL Solicitors LLP for GBP4.2 million.
The total consideration will be split GBP2.3 million in cash and GBP1.9 million through the issuance of 1.2 million new Gateley shares at an average price of GBP1,604.
In the year ended March, GCL generated revenue of GBP6 million.
In a separate announcement on Monday, Gateley said it expects revenue for the year to April 2018 to be no less than GBP84 million as trading in the second half of the year remained strong.
This represents an increase by 8.0% from GBP77.6 million reported the year before.
Earnings before interest, tax, depreciation and amortisation are expected to be no less than GBP16 million, 7.0% higher than GBP14.9 million in 2017.
"I am delighted with the strong performance of the business this year and the growth we have achieved in both fees and profitability," said Chief Executive Officer Michael Ward.
"Following another year of strong momentum, and as separately announced today, I am delighted with the imminent opening of a new Gateley office in Guildford after exchanging contracts to acquire the business and assets of GCL Solicitors LLP. This strategic acquisition brings additional national reach and augments our already strong position in the Housing sector," Ward added.
Gateley shares were trading up 5.9% on Friday at 170.50 pence.
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Gateley Holdings