Gateley (Holdings) (GTLY) AI Stock Analysis

• Market Cap: £141.57M
• Dividend Yield: 8.8%
• Average Volume (3M): 241.45K
• Price to Earnings (P/E): 31.3
• Beta (1Y): 0.17
• Revenue Growth: 6.04%
• EPS Growth: -24.55%
• Country: UK
• Employees: 1,565
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 0.06
• Shares Outstanding: 136,125,870
• 10 Day Avg. Volume: 446,157
• 30 Day Avg. Volume: 241,448
• PEG Ratio: -1.47
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 27.10
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 106.00p ▲(1.92% Upside)

Gateley (Holdings) faces challenges with declining profitability and bearish technical indicators. However, positive corporate events and a high dividend yield provide some support. The stock's high P/E ratio suggests overvaluation, but strategic initiatives and shareholder confidence offer potential for future improvement.

Positive Factors

Revenue Stability

Stable revenue indicates a consistent demand for Gateley's services, supporting long-term business sustainability and client retention.

Diversified Service Portfolio

A diversified service portfolio reduces reliance on a single revenue stream, enhancing resilience against industry-specific downturns.

Attractive Dividend Yield

A high dividend yield can attract income-focused investors, supporting stock demand and providing a steady return to shareholders.

Negative Factors

Declining Profitability Margins

Reduced profitability margins can limit reinvestment in growth opportunities and affect long-term competitive positioning.

Increased Leverage

Higher leverage increases financial risk, potentially impacting Gateley's ability to invest in growth and manage economic downturns.

Weak Cash Flow Generation

Weak cash flow generation can constrain operational flexibility, limiting Gateley's ability to fund new projects and manage liabilities.

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 through a diversified revenue model primarily focused on fee-based services. The company's key revenue streams include legal services, which encompass corporate law, real estate law, and dispute resolution, as well as consultancy services offered to businesses in areas such as tax, employment, and regulatory compliance. The firm also generates income through its property consultancy services, which assist clients in navigating real estate transactions and management. Significant partnerships with corporate clients and ongoing contracts with public sector organizations further enhance its revenue stability. Additionally, Gateley's growth strategy often involves acquisitions of complementary businesses, which can expand its service offerings and client base, contributing to its overall earnings.

Gateley (Holdings) Financial Statement Overview

Summary

Gateley (Holdings) shows a mixed financial picture. While revenue stability and a balanced asset structure are strengths, declining profitability margins and increased leverage pose challenges. Cash flow generation has weakened, impacting 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	187.52M	179.50M	172.49M	162.68M	137.25M	121.38M
Gross Profit	140.78M	82.03M	78.09M	155.44M	131.03M	43.91M
EBITDA	20.50M	17.21M	24.19M	25.10M	34.13M	24.55M
Net Income	4.45M	1.36M	10.07M	12.24M	23.02M	13.16M
Balance Sheet
Total Assets	158.69M	145.01M	163.12M	148.65M	146.43M	121.64M
Cash, Cash Equivalents and Short-Term Investments	10.63M	12.08M	16.67M	11.11M	16.11M	19.61M
Total Debt	57.36M	44.47M	41.43M	38.79M	34.64M	30.45M
Total Liabilities	87.58M	77.51M	82.79M	70.54M	71.30M	62.37M
Stockholders Equity	71.11M	67.50M	80.33M	78.11M	75.14M	59.27M
Cash Flow
Free Cash Flow	462.00K	6.41M	16.98M	9.01M	4.21M	23.71M
Operating Cash Flow	3.04M	7.93M	18.03M	11.11M	5.31M	24.22M
Investing Cash Flow	-2.44M	3.24M	194.00K	-1.62M	-43.00K	-999.00K
Financing Cash Flow	-4.13M	-15.77M	-12.65M	-14.49M	-8.77M	-6.54M

Gateley (Holdings) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 104.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 104 is below the 20-day moving average (MA) of 105.95, below the 50-day MA of 111.51, and below the 200-day MA of 120.14, indicating a bearish trend. The MACD of -2.27 indicates Negative momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 52.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GTLY.

Gateley (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEYS	76 Outperform	£187.77M	19.28	56.75%	5.98%	16.29%	22.80%
RST	66 Neutral	£364.22M	38.78	4.01%	2.31%	6.90%	145.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KGH	61 Neutral	£152.75M	20.16	7.40%	2.75%	8.01%	-23.02%
GTLY	56 Neutral	£141.57M	31.33	5.86%	8.80%	6.04%	-24.55%
MANO	54 Neutral	£24.53M	38.62	1.56%	―	-4.67%	590.48%
RWA	53 Neutral	£87.81M	-5.93	-11.22%	12.88%	-14.31%	-361.93%

Gateley (Holdings) Corporate Events

Gateley to Announce Half-Year Results Earlier Than Usual

Gateley (Holdings) PLC has announced that it will release its half-year results for the period ending 31 October 2025 on 9 December 2025. This announcement will replace the usual pre-close trading update, indicating a shift in their reporting schedule, which may impact stakeholders by providing earlier insights into the company’s financial performance.

Gateley EBT Acquires Shares to Support Employee Incentives

Gateley (Holdings) PLC announced that its Employee Benefit Trust (EBT) has purchased 1,245,454 ordinary shares from certain employees and their spouses, including persons discharging managerial responsibilities (PDMRs). This acquisition, funded by the company’s existing cash resources, is intended to satisfy future employee share option vesting. The transaction represents approximately 0.97% of the company’s total voting rights, indicating a strategic move to support employee retention and incentivization.

Gateley Director Increases Stake with Share Purchase

Gateley (Holdings) Plc announced that its Non-Executive Director, Martin Pike, has purchased 40,000 ordinary shares of the company at an average price of 128.9 pence per share. This transaction increases Pike’s beneficial interest to 0.03% of the company’s issued share capital, indicating confidence in the company’s future prospects and potentially impacting investor sentiment positively.

Gateley (Holdings) PLC Passes All Resolutions at AGM

Gateley (Holdings) PLC announced the successful passing of all resolutions at its Annual General Meeting, including the approval of the Directors’ Remuneration Report, the declaration of a final dividend, and the appointment and reappointment of several directors. This outcome reflects strong shareholder support and positions the company to continue its strategic initiatives and maintain its market presence.

Gateley Announces Internal Share Transfer by Strategic Board Member

Gateley (Holdings) Plc announced a significant share transaction involving Callum Nuttall, a member of its strategic board, who transferred 1,027,000 ordinary shares to his wife, Caroline Martine Annabel Nuttall, without consideration. This transaction, conducted on the London Stock Exchange, reduces Callum Nuttall’s beneficial interest in the company to 567,045 ordinary shares, representing 0.42% of the company’s issued share capital. This internal share transfer reflects personal financial management decisions and does not directly impact the company’s operations or market positioning.

Gateley Announces CFO Succession with Appointment of John Paton

Gateley (Holdings) Plc announced the upcoming departure of Neil Smith, its long-serving Chief Financial Officer (CFO), effective April 30, 2026. John Paton, with extensive experience in finance, mergers and acquisitions, and corporate strategy, will succeed him. Paton, who previously served as CFO at Alpha Financial Markets Consulting, will join Gateley as an Executive Director in January 2026 and assume the CFO role in May. This transition is part of a structured succession plan, ensuring continuity in Gateley’s growth strategy. The announcement underscores Gateley’s commitment to maintaining its trajectory of growth and transformation in the professional services industry.

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.