Gateley (GTLY) H1 2026 earnings summary

Executive summary

• Revenue increased 9.3% year-over-year to £94.3m in H1, with 8.6% organic growth, the strongest in three years, driven by management initiatives and investment returns.

• Interim dividend maintained at 3.3p per share, reflecting consistent shareholder returns.

• Investments in people, systems, and platforms supported growth and operational improvements.

• Margin progression was held back by ongoing investments, cost increases, and a Q2 slowdown in transactional services.

• Management remains confident in meeting full-year consensus expectations.

Financial highlights

• H1 revenue reached £94.3m, up from £86.3m last year, with utilization rising to 89% from 88%.

• Underlying operating profit margin declined to 9.2% from 10.5% due to increased staff and overhead costs.

• Underlying profit before tax fell 10.8% to £9.5m; underlying diluted EPS was 5.65p.

• Net debt increased to £19.6m, mainly due to M&A, investments, CapEx, and share recirculation.

• Lock-up days increased to 170, with debtor days at 97, reflecting slower client payments and more contentious work.

Outlook and guidance

• H2 expected to benefit from lifted client inertia and return of transactional activity, with full-year results anticipated to be in line with market consensus.

• Returns from recent investments and cost savings in H1 expected to enhance H2 performance.

• Targeting at least a 13.5% underlying operating profit margin in the medium term.

• Full-year consensus expectations: revenue of £189.4m and underlying profit before tax of £23.8m.