Gateley (GTLY) H2 2025 earnings summary

Executive summary

• Achieved 4.1% revenue growth to £179.5m for FY25, with organic growth at 2.8% and underlying operating profit up 3.3% year-over-year.

• Maintained underlying operating profit margin at 11.7% amid inflation and ongoing investments.

• Continued focus on long-term growth through targeted investments in platforms, systems, and people.

• Fee earner utilisation rose to 87% (from 83%), reflecting increased activity levels across the group.

• Proposed final dividend of 6.2p, maintaining total FY25 dividends at 9.5p per share.

Financial highlights

• Revenue reached £179.5m, up from £172.5m in FY24, supported by strong returns from prior investments and higher fee utilization.

• Underlying operating profit rose by £0.6 million, with margin steady at 11.7%.

• Net debt position of £6.6m, compared to net cash of £3.8m in FY24.

• Free cash flow decreased to £5.0m from £17.7m, mainly due to bonus payments and acquisition-related outflows.

• Underlying diluted EPS was 13.31p, down from 14.20p year-over-year.

Outlook and guidance

• Entering FY26 with positive momentum and trading in line with market expectations, supported by strong revenue growth in May and June 2025.

• Optimistic outlook for FY26 and beyond, while remaining mindful of macroeconomic volatility.

• Margin improvement remains a key strategic priority.

• Active M&A pipeline and continued optimism for further growth.