15th Jan 2025 12:53
(Alliance News) - Gateley Holdings PLC on Wednesday said interim profit declined as a result of higher exceptional costs.
The Birmingham, England-based legal and consultancy firm said pretax profit was GBP3.3 million in the six months that ended October 31, down 55% from GBP7.4 million a year before.
Revenue rose 5.3% to GBP86.3 million from GBP82.0 million. Consultancy services contributed GBP25.7 million in revenue, up by about 14% from GBP22.6 million in 2024, with consultancy bringing about 30% of group revenue during the half-year.
However, Gateley took GBP7.3 million in exceptional costs, compared to just GBP2.6 million a year before. Additionally, personnel costs rose to GBP54.7 million from GBP52.0 million. Other operating expenses increased to GBP19.1 million from GBP18.2 million.
Gateley proposed an interim dividend of 3.30 pence per share, unchanged from the year prior.
Despite the significant decline in profit, the firm reported a "strong" net cash position of GBP1.2 million at the period end, compared to net debt of GBP2.2 million the year prior.
Gateley expects annual results to be in line with market consensus and noted a "promising mergers and acquisitions pipeline" as it entered the second half of the year.
"We are pleased that our more recent organic investments are beginning to generate positive returns alongside the strong performance from our recently acquired businesses," Chief Executive Rob Waldie commented.
Gateley shares were down 1.9% at 128.00 pence each on Wednesday afternoon in London.
By Holly Munks, Alliance News reporter
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