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Gateley (Holdings) PLC (GB:GTLY)
LSE:GTLY
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Gateley (Holdings) (GTLY) AI Stock Analysis

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GB:GTLY

Gateley (Holdings)

(LSE:GTLY)

Rating:68Neutral
Price Target:
141.00p
▲(15.57%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
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) (GTLY) vs. iShares MSCI United Kingdom ETF (EWC)

Gateley (Holdings) Business Overview & Revenue Model

Company DescriptionGateley (Holdings) PLC is a UK-based legal and professional services group that operates across various sectors, including real estate, banking and financial services, corporate, and commercial. The company offers a range of services such as legal advice, consultancy, and strategic advisory, focusing on delivering integrated and comprehensive solutions to its clients.
How the Company Makes MoneyGateley 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
Gateley (Holdings) demonstrates solid revenue growth and strong cash flow generation, supporting its operations and financial stability. While the income statement shows growing revenues, profitability challenges are evident due to lower EBIT margins. The balance sheet reflects a well-managed capital structure with moderate leverage. Overall, the company is in a healthy financial position, but it should focus on improving profitability margins.
Income Statement
78
Positive
Gateley (Holdings) shows a consistent increase in revenue with a 6% growth from 2023 to 2024. The gross profit margin remains high at approximately 95%, indicating efficient cost management. However, the net profit margin decreased from 7.5% to 5.8%, reflecting a dip in profitability, primarily due to lower EBIT. Overall, the company demonstrates revenue growth but faces challenges in maintaining net profitability.
Balance Sheet
72
Positive
The company maintains a moderate debt-to-equity ratio of 0.52, suggesting a balanced leverage. Return on equity (ROE) has declined to 12.5% from 15.7% the previous year, reflecting reduced profitability. The equity ratio remains strong at 49.2%, indicating a solid capital structure with adequate equity financing. Despite some weakening in profitability metrics, the balance sheet remains stable.
Cash Flow
85
Very Positive
Operating cash flow increased significantly, supporting a robust operating cash flow to net income ratio of 1.79. Free cash flow grew by 88%, indicating strong cash generation and efficient capital expenditure management. The free cash flow to net income ratio also improved, highlighting the company's ability to convert earnings into cash effectively. Overall, cash flow performance is a strong point for the company.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue176.83M172.49M162.68M137.25M121.38M109.84M
Gross Profit65.61M78.09M155.44M131.03M43.91M46.31M
EBITDA23.08M24.19M25.10M34.13M24.55M21.93M
Net Income5.85M10.07M12.24M23.02M13.16M11.72M
Balance Sheet
Total Assets153.51M163.12M148.65M146.43M121.64M98.51M
Cash, Cash Equivalents and Short-Term Investments14.16M16.67M11.11M16.11M19.61M2.92M
Total Debt40.64M41.43M38.79M34.64M30.45M29.26M
Total Liabilities72.68M82.79M70.54M71.30M62.37M53.67M
Stockholders Equity80.83M80.33M78.11M75.14M59.27M44.84M
Cash Flow
Free Cash Flow13.55M16.98M9.01M4.21M23.71M11.37M
Operating Cash Flow14.84M18.03M11.11M5.31M24.22M12.56M
Investing Cash Flow4.01M194.00K-1.62M-43.00K-999.00K-4.47M
Financing Cash Flow-16.33M-12.65M-14.49M-8.77M-6.54M-8.05M

Gateley (Holdings) Technical Analysis

Technical Analysis Sentiment
Negative
Last Price122.00
Price Trends
50DMA
129.62
Negative
100DMA
131.64
Negative
200DMA
130.98
Negative
Market Momentum
MACD
-2.07
Positive
RSI
23.68
Positive
STOCH
10.71
Positive
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 122 is below the 20-day moving average (MA) of 129.95, below the 50-day MA of 129.62, and below the 200-day MA of 130.98, indicating a bearish trend. The MACD of -2.07 indicates Positive momentum. The RSI at 23.68 is Positive, neither overbought nor oversold. The STOCH value of 10.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GTLY.

Gateley (Holdings) Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£196.33M22.8445.84%287.92%13.00%11.16%
77
Outperform
£145.88M12.8111.37%267.65%5.40%19.01%
68
Neutral
£162.89M120.101.85%778.69%4.95%-53.49%
67
Neutral
£374.49M30.095.32%193.36%-0.65%
67
Neutral
£2.85B10.424.69%215.06%2.73%-20.56%
55
Neutral
£116.06M29.69-3.96%1021.95%-16.16%-145.46%
54
Neutral
£34.13M38.242.18%31.96%-95.27%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GTLY
Gateley (Holdings)
122.00
-1.95
-1.57%
GB:RWA
Robert Walters
169.50
-166.21
-49.51%
GB:RST
Restore
273.50
23.15
9.25%
GB:MANO
Manolete Partners Plc
78.00
-60.00
-43.48%
GB:KEYS
Keystone Law Group Plc
619.00
-1.01
-0.16%
GB:KGH
Knights Group Holdings Plc
170.00
44.12
35.05%

Gateley (Holdings) Corporate Events

Private Placements and FinancingDividendsBusiness Operations and StrategyFinancial Disclosures
Gateley Reports Revenue Growth and Strategic Expansion Plans for FY25
Positive
Jun 3, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Gateley Appoints Martin Pike as Independent Non-Executive Director
Positive
Apr 22, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Gateley Secures £80 Million Credit Facility to Fuel Growth
Positive
Apr 14, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 03, 2025