Gateley (Holdings) (GTLY) AI Stock Analysis

• Market Cap: £178.25M
• Dividend Yield: 4.94%
• Average Volume (3M): 100.56K
• Price to Earnings (P/E): 30.3
• Beta (1Y): 0.30
• Revenue Growth: 4.95%
• EPS Growth: -53.49%
• Country: UK
• Employees: 1,565
• Sector: Industrials
• Sector Strength: 86
• Industry: Consulting Services
• EPS (TTM): 0.04
• Shares Outstanding: 133,519,400
• 10 Day Avg. Volume: 93,820
• 30 Day Avg. Volume: 100,558
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• 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: £170.00
• Price Target Upside: 27.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: 141.00p ▲(5.62%Upside)

The overall stock score is influenced significantly by financial performance and corporate events. The company's solid financial foundation, evidenced by strong cash flow and revenue growth, is a key strength. However, technical indicators suggest cautious sentiment, and the high P/E ratio reflects potential overvaluation concerns. The positive corporate events, including strategic growth initiatives, further bolster the outlook.

Positive Factors

Consultancy Services Growth

Consultancy services, accounting for nearly 30% of revenue, have seen significant growth, enhancing the company's cross-selling opportunities.

Financial Performance

Gateley delivered a strong first half with a revenue increase of 5.3%, showing a healthy growth trajectory.

Investment Recommendation

Analyst recommends purchasing Gateley shares, supported by potential margin recovery and a valuation that is seen as attractive.

Negative Factors

Shareholder Agreement

The non-renewal of the Orderly Market Agreement may lead to increased selling by IPO partners, potentially impacting stock stability.

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 makes money primarily through fees charged for its legal and professional services. The company's revenue streams include billing clients for legal representation, consultancy services, and advisory projects. Gateley benefits from a diverse client base spread across multiple industries, which helps mitigate sector-specific risks. Additionally, the company may engage in strategic partnerships and collaborations, enhancing its service offerings and market reach. Its multidisciplinary approach allows Gateley to capitalize on cross-selling opportunities within its varied service lines, further bolstering its financial performance.

Gateley (Holdings) Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	172.49M	162.68M	137.25M	121.38M	109.84M
Gross Profit	164.48M	155.44M	131.03M	43.91M	46.31M
EBITDA	24.19M	25.10M	34.13M	24.55M	21.93M
Net Income	10.07M	12.24M	23.02M	13.16M	11.72M
Balance Sheet
Total Assets	163.12M	148.65M	146.43M	121.64M	98.51M
Cash, Cash Equivalents and Short-Term Investments	16.67M	11.11M	16.11M	19.61M	2.92M
Total Debt	41.43M	38.79M	34.64M	30.45M	29.26M
Total Liabilities	82.79M	70.54M	71.30M	62.37M	53.67M
Stockholders Equity	80.33M	78.11M	75.14M	59.27M	44.84M
Cash Flow
Free Cash Flow	16.98M	9.01M	4.21M	23.71M	11.37M
Operating Cash Flow	18.03M	11.11M	5.31M	24.22M	12.56M
Investing Cash Flow	194.00K	-1.62M	-43.00K	-999.00K	-4.47M
Financing Cash Flow	-12.65M	-14.49M	-8.77M	-6.54M	-8.05M

Gateley (Holdings) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 133.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 133.5 is above the 20-day moving average (MA) of 129.98, above the 50-day MA of 130.28, and above the 200-day MA of 131.05, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 68.74 is Neutral, neither overbought nor oversold. The STOCH value of 79.17 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	14.51	11.37%	1.83%	5.40%	19.01%
KEYS	73 Outperform	£193.48M	22.51	45.84%	4.07%	12.22%	7.48%
RST	68 Neutral	£358.06M	28.61	5.32%	2.91%	-0.65%	―
GTLY	68 Neutral	£178.25M	30.34	7.13%	4.94%	4.95%	-53.49%
Sector *	58 Neutral	$1.34B	4.24	-2.93%	7.38%	3.67%	-51.13%
RWA	56 Neutral	£120.85M	29.69	-3.96%	14.20%	-16.16%	-145.46%
MANO	54 Neutral	£37.63M	41.18	2.18%	―	31.96%	-95.27%

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.