Birmingham-based law firm Gateley, which became the first in the UK to float on the London Stock Exchange in June, says it expects to post results that show ten per cent growth for the last financial year.
In a trading update for the year ended April 30 2015 Gateley’s board said the business continued to perform well in the second half of its financial year.
The board said second half revenues continued to demonstrate strong fee income growth and demand for Gateley’s services and as a result full year revenue for the Group is expected to be not less than £60 million, representing a ten per cent increase over 2014 and yielding an EBITDA in line with management expectations.
Gateley is set to announce its preliminary results on September 15.
The company’s CEO Michael Ward said: “We are encouraged to report such a strong trading statement, our first as a public company. “Post-admission to the Alternative Investment Market, Gateley continues to trade very well and we look to the future with confidence.”
Speaking in June Mr Ward said the £140 million flotation on the Alternative Investment Market (AIM) would open up acquisition opportunities, amid a plan to grow through taking over niche firms or legal teams.
He also said the move was good news for Birmingham.
He said: “This particular story is of a business that started in Birmingham in the early 19th century – we can track it right back here to the city of Birmingham. It is a great Birmingham story.”
Gateley, which is based in Edmund Street, currently has more than 380 fee earners across its six offices in England – which also include Leeds, Leicester, London, Manchester and Nottingham – and one in Dubai.
In 2014 the firm took advantage of legislation changes to adopt an alternative business structure, allowing non-lawyers to own and invest in law firms.
That move was key to the transition from a limited liability partnership to a listed entity.
Mr Ward told the Post: “This isn’t the end of the agenda, this is the beginning, and we think it is the right next step.
“It will differentiate us in the marketplace and allow us to diversify revenue streams, which in a crowded marketplace is good.
“It is also an opportunity to incentivise staff, putting capital in their hands far earlier than would otherwise have been allowed.
“Our view is you have to keep investing and innovating and you can do that in different ways.
“Our step into the public market is a perfect opportunity.”
Gateley was formed through the merger of Henderson Boyd Jackson and Gateley Wareing in 2006 and since then further mergers have taken place with Shaw & Croft and Holmes Hardingham.
It has seen sustained growth in recent years, increasing its profit before tax from £17.1 million in 2012/13 to £20.4 million in 2013/14.