12th Jan 2021 11:54
(Alliance News) - Gateley Holdings PLC on Tuesday said it remains optimistic for the second half of its current financial year as it posted a rise in profit despite a dip in revenue.
For the six months ended October 31, the Birmingham-based legal and professional services group posted pretax profit of GBP6.1 million, up 11% from GBP5.5 million a year prior. This was despite revenue falling 2.5% to GBP50.5 million from GBP51.8 million on a sharp reduction in activity levels in the first two months of the period.
Total expenses were reduced by 0.9% to GBP45.6 million from GBP46.1 million amid cost savings on personnel and overheads.
Looking ahead, Gateley said it intends to reinstate dividends once it is certain about the outcome of financial 2021 at the end of April, adding that its "diversified and resilient business model", coupled with a strong pipeline of work, supports the board's confidence in the future performance of the business.
"The financial 2021 revenue pipeline is robust and this, combined with the many operational efficiencies that we have so far realised in the current year, means I am confident that, despite general uncertainty arising from the pandemic, the group is positioned well to deliver a strong performance for the remainder of the financial year," said Chief Executive Rod Waldie.
Cash held as at October 31 was GBP13.1 million, up from GBP2.4 million.
Shares in Gateley were trading 4.3% higher at 158.00 pence each on Tuesday morning in London.
By Ife Taiwo; [email protected]
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