Gateley Holdings Plc (LON:GTLY) is the topic of conversation when Hardman & Co Analyst Steve Clapham joins DirectorsTalk. Steve explains why Gateley have become the first major UK law firm to list on the stockmarket, why we don’t see others listed, opportunities for growth in the UK legal sector, resilience for law firms in an economic downturn, the risks and the Gateley Investment Proposition.
Gateley Holdings Plc is a broad-based UK legal services firm. It floated on AIM in mid-2015. It is a leader in the UK mid market, having grown strongly over the last decade through one of the most difficult ever trading environments for professional services businesses. With 14% compound growth in revenues at stable profit margins over that period, its strategy is to continue this organic growth, fuelled by lateral hires and new office openings, complemented by selective bolt-on acquisitions in adjacent business service lines. The reasoning behind the IPO has been amply justified.
For the past 20 years Hardman & Co has been producing specialist research designed to improve investors’ understanding of companies, sectors, industries and investment securities. It’s analysts are highly experienced in their sectors, and have often been highly rated by professional investors for their knowledge. Their focus is to raise companies’ profiles across the UK and abroad with outstanding research, investor engagement programmes and advisory services. Some of their notes have been commissioned by the company which is the subject of the note; this is clearly stated in the disclaimer where this is the case.