Gateley (Holdings) (GTLY) AI Stock Analysis

• Market Cap: £177.79M
• Dividend Yield: 7.17%
• Average Volume (3M): 95.98K
• Price to Earnings (P/E): 128.4
• Beta (1Y): 0.28
• Revenue Growth: 4.06%
• EPS Growth: -86.89%
• Country: UK
• Employees: 1,565
• Sector: Industrials
• Sector Strength: 73
• Industry: Consulting Services
• EPS (TTM): >-0.01
• Shares Outstanding: 135,714,840
• 10 Day Avg. Volume: 71,481
• 30 Day Avg. Volume: 95,978
• 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: 24.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: 134.00p ▲(1.13% Upside)

Gateley (Holdings) receives a moderate overall stock score. The most significant factor is the mixed financial performance, with declining profitability and increased leverage being key concerns. Technical analysis shows some positive momentum, but valuation metrics indicate potential overvaluation. The high dividend yield is a positive aspect for income investors.

Positive Factors

Mergers and Acquisitions

Gateley's strong balance sheet provides headroom for M&A, with the pipeline promising.

Operating Margins

Management targets a rise in operating margins to 13.5% or more through increased pricing, enhanced cross-selling, and returns from recent investments.

Negative Factors

Earnings Estimates

The analyst has trimmed the earnings per share estimates for the coming years due to a higher effective tax rate.

Shareholder Agreement

The group will not renew the Orderly Market Agreement, which ends in June 2025. This limited IPO partners to selling 10% of the shares they held at admission p.a.

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: 132.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 132.5 is above the 20-day moving average (MA) of 125.78, above the 50-day MA of 126.66, and above the 200-day MA of 131.06, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 76.20 is Negative, neither overbought nor oversold. The STOCH value of 76.80 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	£152.75M	13.41	11.37%	2.59%	5.40%	19.01%
KEYS	64 Neutral	£185.55M	21.59	45.84%	3.05%	13.00%	11.16%
Sector *	64 Neutral	$10.75B	15.58	7.62%	2.01%	2.80%	-14.32%
RST	64 Neutral	£357.37M	38.05	4.01%	2.03%	6.90%	―
GTLY	60 Neutral	£177.79M	128.43	1.85%	7.17%	4.06%	-86.89%
MANO	54 Neutral	£49.51M	55.39	2.18%	―	21.88%	-4.23%
RWA	46 Neutral	£107.84M	29.69	-11.22%	11.10%	-14.31%	-361.93%

Gateley (Holdings) Corporate Events

Gateley Reports Revenue Growth and Strategic Expansion Plans for FY25

Gateley (Holdings) PLC reported a 4% increase in group revenue for the fiscal year ending April 30, 2025, with organic growth contributing 3%. Despite a decline in net interest income due to lower interest rates, the company maintained its operating margin and plans to propose a final dividend of 6.2p, aligning annual dividends with the previous year. The company also renewed and increased its revolving credit facility to £80m to support its growth strategy, positioning itself for further expansion in FY26. The company remains optimistic about its future prospects despite the unpredictable economic environment.

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 Appoints Martin Pike as Independent Non-Executive Director

Gateley (Holdings) Plc has appointed Martin Pike as an Independent Non-Executive Director, enhancing its board with his extensive experience in global professional services and leadership roles in FTSE 100 and FTSE 250 companies. This strategic appointment aligns with Gateley’s growth strategy and commitment to attracting exceptional talent, while Colin Jones will step down from his role as a Non-Executive Director at the end of April 2025.

Gateley Secures £80 Million Credit Facility to Fuel Growth

Gateley (Holdings) PLC has secured a new £80 million revolving credit facility to support its growth strategy, replacing its previous £30 million facility. This new agreement, involving Bank of Scotland, HSBC UK, Barclays, and NatWest, provides Gateley with increased financial flexibility to pursue organic growth and acquisitions, enhancing its service offerings and market resilience.