Gateley (Holdings) (GTLY) AI Stock Analysis

• Market Cap: £168.80M
• Dividend Yield: 7.42%
• Average Volume (3M): 149.02K
• Price to Earnings (P/E): 121.6
• Beta (1Y): 0.29
• Revenue Growth: 4.06%
• EPS Growth: -86.89%
• Country: UK
• Employees: 1,565
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): >-0.01
• Shares Outstanding: 136,125,870
• 10 Day Avg. Volume: 204,277
• 30 Day Avg. Volume: 149,022
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £165.00
• Price Target Upside: 33.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: 131.00p ▲(5.65% Upside)

Gateley (Holdings) faces significant challenges with high valuation and declining profitability margins. While the dividend yield is attractive, the company's financial performance and technical indicators suggest caution. Addressing leverage and improving cash flow generation are critical for future growth.

Positive Factors

Revenue Stability

Gateley's stable revenue base, supported by diverse service offerings, ensures consistent cash inflow, aiding long-term financial health.

Diversified Service Portfolio

A broad range of services across industries enhances market resilience and client retention, supporting sustained revenue growth.

Balanced Asset Structure

A stable equity ratio indicates prudent asset management, providing a solid foundation for future investments and growth opportunities.

Negative Factors

Declining Profitability Margins

Reduced profitability margins can strain financial resources, limiting reinvestment capacity and affecting long-term competitive positioning.

Increased Leverage

Higher leverage increases financial risk, potentially impacting credit ratings and limiting strategic flexibility in adverse conditions.

Weak Cash Flow Generation

Declining cash flow generation can hinder operational funding and investment in growth initiatives, affecting long-term sustainability.

Gateley (Holdings) Business Overview & Revenue Model

Company Description

Gateley (Holdings) Plc, together with its subsidiaries, provides commercial legal and consultancy services in the United Kingdom, Europe, the Middle East, North and South America, Asia, and internationally. It operates through five segments: Banking and Financial Services; Corporate; Business Services; Employees, Pensions and Benefits; and Property. The company offers legal services for asset finance, banking, and restructuring services; corporate, family, private client, and taxation services; commercial, commercial dispute resolution, litigation, and shipping services; tweed services; employment and pension services; and construction, planning, real estate, and residential development services. It also provides pension trustee, tax incentive, specialist property consultancy, human capital consultancy, investment consultancy, and employee benefit trust services, as well as commercial landlord and tenant, corporate advisory, and dispute resolution and consultancy services. The company was formerly known as Gateley Plc and changed its name to Gateley (Holdings) Plc in May 2015. Gateley (Holdings) Plc was incorporated in 2014 and is based in Birmingham, the United Kingdom.

How the Company Makes Money

Gateley generates revenue primarily through its legal and consultancy services, which include billable hours, fixed fees, and retainer agreements with clients. The company has established key revenue streams through its extensive client base, which includes both individual and corporate clients. Significant partnerships with various organizations and participation in industry networks enhance its market reach and service offerings. Additionally, Gateley benefits from ancillary services, such as property management and project management, which contribute to its overall earnings. The company's diversified service portfolio and reputation for quality help to drive recurring business and new client acquisition.

Gateley (Holdings) Financial Statement Overview

Summary

Gateley (Holdings) presents a mixed financial picture. While there are strengths in revenue stability and a balanced asset structure, declining profitability margins and increased leverage pose challenges. Cash flow generation has weakened, which could impact future financial flexibility.

Income Statement

Gateley (Holdings) shows a mixed performance in its income statement. The gross profit margin has been relatively stable, but the net profit margin has significantly decreased from previous years, indicating pressure on profitability. Revenue growth has been modest, with a slight increase in the latest year. However, the EBIT and EBITDA margins have declined, suggesting challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has increased, indicating a rise in leverage, which could pose a risk if not managed properly. Return on equity has decreased, reflecting reduced profitability for shareholders. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals some concerns. The free cash flow growth rate has significantly declined, indicating potential issues in generating cash. The operating cash flow to net income ratio is low, suggesting inefficiencies in converting income into cash. However, the free cash flow to net income ratio remains relatively healthy, indicating some resilience in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	179.50M	179.50M	172.49M	162.68M	137.25M	121.38M
Gross Profit	82.03M	82.03M	78.09M	155.44M	131.03M	43.91M
EBITDA	19.68M	17.21M	24.19M	25.10M	34.13M	24.55M
Net Income	1.36M	1.36M	10.07M	12.24M	23.02M	13.16M
Balance Sheet
Total Assets	145.01M	145.01M	163.12M	148.65M	146.43M	121.64M
Cash, Cash Equivalents and Short-Term Investments	12.08M	12.08M	16.67M	11.11M	16.11M	19.61M
Total Debt	44.47M	44.47M	41.43M	38.79M	34.64M	30.45M
Total Liabilities	77.51M	77.51M	82.79M	70.54M	71.30M	62.37M
Stockholders Equity	67.50M	67.50M	80.33M	78.11M	75.14M	59.27M
Cash Flow
Free Cash Flow	7.74M	6.41M	16.98M	9.01M	4.21M	23.71M
Operating Cash Flow	9.27M	7.93M	18.03M	11.11M	5.31M	24.22M
Investing Cash Flow	-1.53M	3.24M	194.00K	-1.62M	-43.00K	-999.00K
Financing Cash Flow	-14.47M	-15.77M	-12.65M	-14.49M	-8.77M	-6.54M

Gateley (Holdings) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 124.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GTLY, the sentiment is Positive. The current price of 124 is below the 20-day moving average (MA) of 128.35, below the 50-day MA of 125.67, and below the 200-day MA of 130.69, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 51.59 is Neutral, neither overbought nor oversold. The STOCH value of 29.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GTLY.

Gateley (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KGH	77 Outperform	£165.19M	21.80	―	2.34%	8.01%	-23.02%
KEYS	73 Outperform	£218.85M	22.48	41.99%	2.93%	16.29%	22.80%
RST	64 Neutral	£365.59M	38.92	5.30%	2.26%	6.90%	―
GTLY	57 Neutral	£168.80M	121.57	1.85%	7.42%	4.06%	-86.89%
MANO	54 Neutral	£37.90M	42.65	―	―	21.88%	-4.23%
RWA	46 Neutral	£83.88M	-5.64	-4.33%	13.64%	-14.31%	-361.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Gateley (Holdings) Corporate Events

Gateley (Holdings) PLC Issues Equity Following Successful RJA Acquisition

Gateley (Holdings) PLC announced the issuance of equity related to its acquisition of RJA Consultants, now Gateley RJA, following the achievement of a revenue target that exceeded expectations. The successful performance of RJA has resulted in the final earn-out payment, reflecting its valuable contribution to Gateley’s property platform and its alignment with government housing policies, enhancing Gateley’s market position in the property and insurance sectors.

The most recent analyst rating on (GB:GTLY) stock is a Hold with a £134.00 price target. To see the full list of analyst forecasts on Gateley (Holdings) stock, see the GB:GTLY Stock Forecast page.

Gateley Announces Share Awards to Boost Employee Engagement

Gateley (Holdings) Plc has announced a grant of share awards to senior employees and directors as part of its incentivisation and equity recirculation strategy. The move involves issuing over 2 million new Ordinary Shares to the Gateley Employee Benefit Trust for allocation in share scheme awards, enhancing employee engagement and aligning interests with the company’s growth ambitions.

The most recent analyst rating on (GB:GTLY) stock is a Buy with a £165.00 price target. To see the full list of analyst forecasts on Gateley (Holdings) stock, see the GB:GTLY Stock Forecast page.

Gateley (Holdings) PLC Releases Annual Report and Announces AGM Details

Gateley (Holdings) PLC has released its Annual Report for the year ending April 30, 2025, and announced the details of its upcoming Annual General Meeting (AGM). The AGM is scheduled to take place on September 24, 2025, at the company’s London office. This announcement is significant for shareholders and stakeholders as it provides insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (GB:GTLY) stock is a Buy with a £165.00 price target. To see the full list of analyst forecasts on Gateley (Holdings) stock, see the GB:GTLY Stock Forecast page.

Gateley Unveils Fifth Annual Responsible Business Report

Gateley (Holdings) PLC has released its fifth annual Responsible Business report, highlighting its commitment to sustainability and community impact. The report introduces 14 new objectives aligned with the UN Sustainable Development goals and details partnerships with organizations like Birmingham Panthers and Maiden Cricket, as well as collaborations with carbon accounting specialists. These initiatives aim to enhance social mobility and create accessible pathways into the sector, reflecting Gateley’s dedication to continuous improvement and societal contribution.

The most recent analyst rating on (GB:GTLY) stock is a Buy with a £170.00 price target. To see the full list of analyst forecasts on Gateley (Holdings) stock, see the GB:GTLY Stock Forecast page.

Gateley (Holdings) PLC Announces Total Voting Rights Update

Gateley (Holdings) PLC has announced the total number of Ordinary Shares in issue as of 31 July 2025, which stands at 133,701,626 with no shares held in treasury. This information is crucial for shareholders as it serves as the denominator for calculating their interest in the company, in line with the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:GTLY) stock is a Buy with a £165.00 price target. To see the full list of analyst forecasts on Gateley (Holdings) stock, see the GB:GTLY Stock Forecast page.

Gateley Enhances Board with Strategic Appointments

Gateley (Holdings) Plc has appointed Jenny Goldie-Scot and Sunil Gadhia as Independent Non-Executive Directors to its Board, enhancing its governance and strategic growth initiatives. The appointments aim to leverage their extensive experience in global financial services and legal sectors, supporting Gateley’s commitment to attracting exceptional talent and strengthening its market position.

The most recent analyst rating on (GB:GTLY) stock is a Buy with a £170.00 price target. To see the full list of analyst forecasts on Gateley (Holdings) stock, see the GB:GTLY Stock Forecast page.

Gateley (Holdings) Strengthens Board with New Appointments

Gateley (Holdings) Plc has announced the appointment of Jenny Goldie-Scot and Sunil Gadhia as Independent Non-Executive Directors to its Board, effective immediately. These appointments are part of Gateley’s strategy to enhance its governance and risk management structure, with the separation of the Audit & Risk Committee into two distinct committees. Jenny Goldie-Scot will chair the new Risk Committee, while Sunil Gadhia will join the Nomination and Remuneration Committees. This move is expected to support Gateley’s growth ambitions and strengthen its leadership with the extensive experience both appointees bring from their careers in global financial services and legal sectors.

The most recent analyst rating on (GB:GTLY) stock is a Buy with a £170.00 price target. To see the full list of analyst forecasts on Gateley (Holdings) stock, see the GB:GTLY Stock Forecast page.

Gateley Reports Revenue Growth Amidst Challenging Market Conditions

Gateley (Holdings) PLC reported a 4.1% revenue growth for the fiscal year ending April 2025, driven by a 3.9% organic growth in legal services despite challenging market conditions. The company maintained its operating profit margin at 11.7% and integrated its recent acquisition successfully, while also focusing on strategic hiring and stakeholder alignment. The company is optimistic about FY26, aiming for sustainable, long-term growth despite macroeconomic volatility.

The most recent analyst rating on (GB:GTLY) stock is a Buy with a £170.00 price target. To see the full list of analyst forecasts on Gateley (Holdings) stock, see the GB:GTLY Stock Forecast page.