New Risk • Jun 17
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: UK£71.2m (US$94.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 286% Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (UK£71.2m market cap, or US$94.6m). Price Target Changed • Jun 09
Price target decreased by 14% to UK£1.63 Down from UK£1.90, the current price target is an average from 4 analysts. New target price is 181% above last closing price of UK£0.58. Stock is down 55% over the past year. The company is forecast to post earnings per share of UK£0.02 for next year compared to UK£0.01 last year. Announcement • Jun 04
Gateley (Holdings) plc Provides Earnings Guidance for the Year Fiscal Year Ended 30 April 2026 Gateley (Holdings) Plc provided earnings guidance for the year fiscal year ended 30 April 2026. For the period, the Board expects revenue for Fiscal Year 26 of c £193 million, up circa 7% on the prior year and ahead of consensus expectations. Upcoming Dividend • Feb 12
Upcoming dividend of UK£0.033 per share Eligible shareholders must have bought the stock before 19 February 2026. Payment date: 31 March 2026. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 10%. Within top quartile of British dividend payers (5.3%). Higher than average of industry peers (2.9%). Board Change • Feb 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Executive Director John Paton was the last director to join the board, commencing their role in 2026. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Dec 11
First half 2026 earnings released: EPS: UK£0.037 (vs UK£0.014 in 1H 2025) First half 2026 results: EPS: UK£0.037 (up from UK£0.014 in 1H 2025). Revenue: UK£94.3m (up 9.3% from 1H 2025). Net income: UK£5.01m (up 161% from 1H 2025). Profit margin: 5.3% (up from 2.2% in 1H 2025). Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Professional Services industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 48 percentage points per year, which is a significant difference in performance. Declared Dividend • Dec 11
First half dividend of UK£0.033 announced Dividend of UK£0.033 is the same as last year. Ex-date: 19th February 2026 Payment date: 31st March 2026 Dividend yield will be 8.9%, which is higher than the industry average of 1.9%. Sustainability & Growth Dividend is not covered by earnings (286% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 9.6% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 218% to bring the payout ratio under control. EPS is expected to grow by 27% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Announcement • Dec 11
Gateley (Holdings) Plc Proposes Interim Dividend for the Six Months Ended 31 October 2025, Payable on March 31, 2026 The Board of Gateley (Holdings) Plc proposed an interim dividend of 3.3 pence per eligible ordinary share for the six months ended 31 October 2025 (First half of 2025: 3.3 pence). This dividend will be paid on 31 March 2026 to shareholders on the Company's register on 20 February 2026, with an ex-dividend date of 19 February 2026. Announcement • Nov 20
Gateley (Holdings) Plc to Report First Half, 2026 Results on Dec 09, 2025 Gateley (Holdings) Plc announced that they will report first half, 2026 results on Dec 09, 2025 Recent Insider Transactions • Oct 10
Independent Non-Executive Director recently bought UK£52k worth of stock On the 7th of October, Martin St. Pike bought around 40k shares on-market at roughly UK£1.29 per share. This trade did not impact their existing holding. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought UK£66k more in shares than they have sold in the last 12 months. Upcoming Dividend • Oct 02
Upcoming dividend of UK£0.062 per share Eligible shareholders must have bought the stock before 09 October 2025. Payment date: 14 November 2025. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 7.4%. Within top quartile of British dividend payers (5.4%). Higher than average of industry peers (1.9%). Announcement • Sep 02
Gateley (Holdings) Plc (AIM:GTLY) acquired Groom Wilkes & Wright Llp for £9 million. Gateley (Holdings) Plc (AIM:GTLY) acquired Groom Wilkes & Wright Llp for £9 million on September 1, 2025. Under the terms of the Acquisition, Gateley has acquired Groom Wilkes & Wright LLP from its members (the "Sellers") for a maximum consideration of up to £9.0 million. The initial consideration of £5.725 million will be subject to normal working capital and balance sheet adjustments, by reference to the final completion accounts. All consideration payments will be satisfied as to 75% in cash and 25% by the issuance of ordinary shares of £0.10 each in the capital of Gateley, the balance of the consideration will be payable by reference to a two year earn-out period, with additional consideration equal to one times the EBITDA of the acquired business in each of the two years after completion. The initial cash consideration will be funded from Gateley's new £80 million revolving credit facility announced on April 14, 2025. All members of the Groom Wilkes & Wright management team will remain with the business, including Senior Partner, Trevor Wright, who has been in the trademark industry for over forty years and was a founder member of the business in 2004.
Panmure Liberum acted as nominated advisor to Gateley.
Gateley (Holdings) Plc (AIM:GTLY) completed the acquisition of Groom Wilkes & Wright Llp on September 1, 2025. Reported Earnings • Aug 31
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: UK£0.01 (down from UK£0.077 in FY 2024). Revenue: UK£179.5m (up 4.1% from FY 2024). Net income: UK£1.37m (down 87% from FY 2024). Profit margin: 0.8% (down from 5.8% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 85%. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Professional Services industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Announcement • Aug 28
Gateley (Holdings) Plc to Report Fiscal Year 2025 Final Results on Aug 28, 2025 Gateley (Holdings) Plc announced that they will report fiscal year 2025 final results on Aug 28, 2025 Board Change • Jul 31
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Non-Executive Director Martin St. Pike was the last independent director to join the board, commencing their role in 2025. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Declared Dividend • Jul 17
Final dividend of UK£0.062 announced Dividend of UK£0.062 is the same as last year. Ex-date: 9th October 2025 Payment date: 14th November 2025 Dividend yield will be 7.5%, which is higher than the industry average of 1.9%. Sustainability & Growth Dividend is not covered by earnings (dividend approximately 9x earnings) nor is it covered by cash flows (198% cash payout ratio). The dividend has increased by an average of 9.6% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 933% to bring the payout ratio under control. EPS is expected to grow by 133% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Jul 16
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: UK£0.01 (down from UK£0.077 in FY 2024). Revenue: UK£179.5m (up 4.1% from FY 2024). Net income: UK£1.37m (down 87% from FY 2024). Profit margin: 0.8% (down from 5.8% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 85%. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Professional Services industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Announcement • Jul 16
Gateley (Holdings) Plc, Annual General Meeting, Sep 24, 2025 Gateley (Holdings) Plc, Annual General Meeting, Sep 24, 2025. New Risk • Jul 15
New major risk - Revenue and earnings growth Earnings have declined by 5.7% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 216% Cash payout ratio: 94% Earnings have declined by 5.7% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.3% net profit margin). Announcement • Apr 22
Gateley (Holdings) plc Announces Board and Committee Changes Gateley (Holdings) Plc announced the appointment to the Board of Martin Pike as an Independent Non-Executive Director with immediate effect. Martin brings a wealth of experience from his executive career in global professional services, followed by a series of Non-Executive Director roles including at leading FTSE 100 and FTSE 250 companies. Martin spent nearly 30 years at Willis Towers Watson where he led the EMEA risk consulting and software business and was a member of the global leadership team. Since then, Martin has held board and advisory positions in organizations including Aberdeen Group plc, where he chaired the Risk & Capital Committee, AIG Life Limited, where he was Chair of the UK business, Esure Group PLC, Faraday Underwriting Ltd. and Travers Smith LLP. A highly experienced and effective Non-Executive Director, Martin is currently a Non-Executive Director of Pension Insurance Corporation PLC, a specialist insurer, and is the Chair and Joint Founder of Greencore Homes Ltd, a zero-carbon construction business. In addition to his appointment to the Board, Martin is appointed as a member of the Board Audit and Risk Committee, and Joanne Lake is appointed Chair of the Board Remuneration Committee in addition to her current roles, all with immediate effect. Separately, Colin Jones has informed the Board of his intention to step down as a Non-Executive Director with effect from 30 April 2025. Further information on Martin Pike: Martin Pike, aged 63, is, or has been, a director or partner of the following companies or partnerships during the last 5 years: Current Directorships and partnerships: Pension Insurance Corporation PLC, Brightwell Solutions Limited, Oxford Advanced Living Limited, Greencore Homes Ltd, Past Directorships and partnerships: Aviva Protection UK Limited (previously AIG Life Limited), Faraday Underwriting Ltd, Aberdeen Group PLC, Martin Pike does not hold any legal or beneficial direct or indirect interest in the ordinary shares of the Company. Upcoming Dividend • Feb 13
Upcoming dividend of UK£0.033 per share Eligible shareholders must have bought the stock before 20 February 2025. Payment date: 31 March 2025. The company is paying out more than 100% of its profits and is paying out 94% of its cash flow. Trailing yield: 7.0%. Within top quartile of British dividend payers (5.7%). Higher than average of industry peers (1.8%). Declared Dividend • Jan 17
First half dividend of UK£0.033 announced Dividend of UK£0.033 is the same as last year. Ex-date: 20th February 2025 Payment date: 31st March 2025 Dividend yield will be 7.1%, which is higher than the industry average of 1.9%. Sustainability & Growth Dividend is not covered by earnings (216% earnings payout ratio) nor is it adequately covered by cash flows (94% cash payout ratio). The dividend has increased by an average of 11% per year over the past 9 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 140% to bring the payout ratio under control. EPS is expected to grow by 134% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. New Risk • Jan 15
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.3% Last year net profit margin: 8.1% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 216% Cash payout ratio: 94% Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.3% net profit margin). Reported Earnings • Jan 15
First half 2025 earnings released: EPS: UK£0.014 (vs UK£0.048 in 1H 2024) First half 2025 results: EPS: UK£0.014 (down from UK£0.048 in 1H 2024). Revenue: UK£86.3m (up 5.3% from 1H 2024). Net income: UK£1.92m (down 69% from 1H 2024). Profit margin: 2.2% (down from 7.5% in 1H 2024). Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 6.0% growth forecast for the Professional Services industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Announcement • Jan 15
Gateley (Holdings) Plc Proposes an Interim Dividend for the First Half Ended October 31, 2024, Payable on 31 March 2025 The board of Gateley (Holdings) Plc has proposed an interim dividend of 3.3 pence per eligible ordinary share for the first half ended October 31, 2024 (first half of 2024 3.3 pence). This dividend will be paid on 31 March 2025 to shareholders on the Company's register on 21 February 2025, with an ex-dividend date of 20 February 2025. Recent Insider Transactions • Oct 15
Key Executive recently sold UK£69k worth of stock On the 7th of October, Neil Smith sold around 50k shares on-market at roughly UK£1.38 per share. This transaction amounted to 12% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Neil has been a net seller over the last 12 months, reducing personal holdings by UK£145k. Upcoming Dividend • Oct 03
Upcoming dividend of UK£0.062 per share Eligible shareholders must have bought the stock before 10 October 2024. Payment date: 08 November 2024. The company is paying out more than 100% of its profits and is paying out 95% of its cash flow. Trailing yield: 6.9%. Within top quartile of British dividend payers (5.5%). Higher than average of industry peers (1.7%). Reported Earnings • Sep 04
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: UK£0.077 (down from UK£0.098 in FY 2023). Revenue: UK£172.5m (up 6.0% from FY 2023). Net income: UK£10.1m (down 18% from FY 2023). Profit margin: 5.8% (down from 7.5% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 12%. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 6.0% growth forecast for the Professional Services industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 15% per year. Announcement • Aug 30
Gateley (Holdings) Plc to Report Fiscal Year 2024 Results on Aug 30, 2024 Gateley (Holdings) Plc announced that they will report fiscal year 2024 results at 8:00 AM, GMT Standard Time on Aug 30, 2024 Announcement • Aug 22
Gateley (Holdings) plc Announces Board and Committee Changes Gateley (Holdings) Plc announced the appointment of Edward Knapp as an Independent Non-Executive Director and Chair Designate. Edward becomes a Non-Executive Director with immediate effect and will become Chairman when Nigel Payne steps down from the board on 1 November 2024. Edward Is A Global Business Leader with Extensive Experience in Growth Strategy Design and Delivery, Technology, Risk Management and Transformation with A Particular Focus on Professional and Financial Services. He Has Held Executive and Senior Leadership Roles in Consultancy and Professional Services, High-Growth Technology Companies and Major Financial Institutions Worldwide, Including Mckinsey & Company, Barclays, Hsbc, Revolut and M&G, Where He Has Most Recently Brought A Particular Focus on Advisory, Wealth Management and Talent. as A Member of the Uk Endorsement Board He Is Accountable for Influencing, Endorsing and Adopting Standards for Audit, Accounting and Professional Services Spanning Uk Plcs. He Currently Serves as A Non-Executive Director of F&C Investment Trust plc and Has Extensive International Private-Equity Backed and plc Board and Advisory Experience, Including Chairman of the Audit and Risk Committee and Non-Executive Director of Aim Company Ten Lifestyle Group plc and Formerly as A Non-Executive Director of Mattioli Woods Plc. on Appointment, Edward Will Become A Member of the Remuneration, Audit and Risk and Nomination Committees. from 1 November 2024, He Will Take over the Role of Chairman of the Board, and Chairman of the Nomination Committee. Edward Stephen Knapp, aged 40, is, or has been, a director or partner of the following companies or partnerships during the last 5 years: Current Directorships: Asia House Enterprises Limited: Asia House, F&C Investment Trust plc, Possibility+ Limited, Ten Lifestyle Group plc, The Payment Systems Regulator Limited, United Kingdom Endorsement Board. Past Directorships: Dunsfold Airport Limited, Eureka Management Company Limited, Mattioli Woods plc, Redwood Bank Limited, Trinity College (CSP) Limited, Trinity (B) Limited, Trinity College (D) Limited, Trinity College (E) Limited, Trinity College (F) Limited, Walton Farms Limited. Recent Insider Transactions • Aug 12
Independent Non-Executive Director recently bought UK£52k worth of stock On the 8th of August, Colin Jones bought around 40k shares on-market at roughly UK£1.30 per share. This trade did not impact their existing holding. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold UK£73k more in shares than they bought in the last 12 months. Declared Dividend • Jul 18
Final dividend of UK£0.062 announced Dividend of UK£0.062 is the same as last year. Ex-date: 10th October 2024 Payment date: 1st January 1970 Dividend yield will be 7.0%, which is higher than the industry average of 1.9%. Sustainability & Growth Dividend is not covered by earnings (123% earnings payout ratio) nor is it adequately covered by cash flows (98% cash payout ratio). The dividend has increased by an average of 11% per year over the past 9 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 36% to bring the payout ratio under control. EPS is expected to grow by 63% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Jul 17
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: UK£0.077 (down from UK£0.098 in FY 2023). Revenue: UK£172.5m (up 6.0% from FY 2023). Net income: UK£10.1m (down 18% from FY 2023). Profit margin: 5.8% (down from 7.5% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 12%. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Professional Services industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 14% per year. New Risk • Jul 01
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.7% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.7% per year for the foreseeable future. Minor Risks Dividend is not well covered by cash flows (159% cash payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (8.1% net profit margin). Shareholders have been diluted in the past year (5.3% increase in shares outstanding). Significant insider selling over the past 3 months (UK£176k sold). Valuation Update With 7 Day Price Move • May 24
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to UK£1.35, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 22x in the Professional Services industry in the United Kingdom. Total loss to shareholders of 20% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£2.65 per share. Announcement • May 16
Gateley (Holdings) Plc to Report Fiscal Year 2024 Results on Jul 16, 2024 Gateley (Holdings) Plc announced that they will report fiscal year 2024 results on Jul 16, 2024 Recent Insider Transactions • Apr 08
Key Executive recently sold UK£76k worth of stock On the 3rd of April, Neil Smith sold around 60k shares on-market at roughly UK£1.26 per share. This transaction amounted to 17% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Neil's only on-market trade for the last 12 months. Upcoming Dividend • Feb 16
Upcoming dividend of UK£0.033 per share at 7.1% yield Eligible shareholders must have bought the stock before 22 February 2024. Payment date: 28 March 2024. Payout ratio is on the higher end at 88%, and the cash payout ratio is above 100%. Trailing yield: 7.1%. Within top quartile of British dividend payers (6.1%). Higher than average of industry peers (1.9%). Price Target Changed • Jan 24
Price target decreased by 9.1% to UK£2.00 Down from UK£2.20, the current price target is an average from 3 analysts. New target price is 38% above last closing price of UK£1.45. Stock is down 23% over the past year. The company is forecast to post earnings per share of UK£0.099 for next year compared to UK£0.098 last year. Declared Dividend • Jan 19
First half dividend of UK£0.033 announced Shareholders will receive a dividend of UK£0.033. Ex-date: 22nd February 2024 Payment date: 28th March 2024 Dividend yield will be 6.6%, which is higher than the industry average of 2.0%. Sustainability & Growth Dividend is covered by earnings (88% earnings payout ratio) but not covered by cash flows (157% cash payout ratio). The dividend has increased by an average of 12% per year over the past 8 years. However, payments have been volatile during that time. EPS is expected to grow by 18% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Board Change • Jan 19
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Colin Jones was the last independent director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Jan 17
First half 2024 earnings released: EPS: UK£0.048 (vs UK£0.037 in 1H 2023) First half 2024 results: EPS: UK£0.048 (up from UK£0.037 in 1H 2023). Revenue: UK£82.0m (up 7.6% from 1H 2023). Net income: UK£6.14m (up 32% from 1H 2023). Profit margin: 7.5% (up from 6.1% in 1H 2023). Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Professional Services industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Nov 22
Gateley (Holdings) Plc to Report First Half, 2024 Results on Jan 17, 2024 Gateley (Holdings) Plc announced that they will report first half, 2024 results on Jan 17, 2024 Price Target Changed • Sep 29
Price target decreased by 14% to UK£2.20 Down from UK£2.55, the current price target is an average from 3 analysts. New target price is 49% above last closing price of UK£1.48. Stock is down 23% over the past year. The company is forecast to post earnings per share of UK£0.099 for next year compared to UK£0.098 last year. New Risk • Sep 26
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 7.5% Last year net profit margin: 17% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 97% Cash payout ratio: 161% Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (7.5% net profit margin). Shareholders have been diluted in the past year (4.3% increase in shares outstanding). Reported Earnings • Sep 07
Full year 2023 earnings released: EPS: UK£0.098 (vs UK£0.12 in FY 2022) Full year 2023 results: EPS: UK£0.098 (down from UK£0.12 in FY 2022). Revenue: UK£162.7m (up 19% from FY 2022). Net income: UK£12.2m (down 14% from FY 2022). Profit margin: 7.5% (down from 10% in FY 2022). Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Professional Services industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 7% per year. Announcement • Aug 31
Gateley (Holdings) Plc to Report Fiscal Year 2023 Results on Sep 06, 2023 Gateley (Holdings) Plc announced that they will report fiscal year 2023 results on Sep 06, 2023 Announcement • Aug 01
Gateley (Holdings) Plc, Annual General Meeting, Oct 17, 2023 Gateley (Holdings) Plc, Annual General Meeting, Oct 17, 2023, at 11:30 Coordinated Universal Time. Announcement • Jun 28
Gateley (Holdings) Plc Announces Board Changes Gateley (Holdings) Plc announced that, due to ill health, Suki Thompson, Non-Executive Director, has notified the Company of her intention to stand down from the board with immediate effect. The Group will look to appoint a new Non-Executive Director and will make a further announcement in due course. Non-Executive Director, Joanne Lake will chair the remuneration committee until an appointment is made. Price Target Changed • Jun 08
Price target decreased by 7.4% to UK£2.30 Down from UK£2.48, the current price target is an average from 3 analysts. New target price is 39% above last closing price of UK£1.65. Stock is down 23% over the past year. The company posted earnings per share of UK£0.12 last year. Announcement • Jun 02
Gateley (Holdings) Plc Provides Earnings Guidance for the Year Ended April 30, 2023 Gateley (Holdings) Plc provided earnings guidance for the year ended April 30, 2023. For the year, the group expected revenue to be not less than £161 million, a c.17% increase on the prior year (FY22: £137.2 million). Upcoming Dividend • Feb 16
Upcoming dividend of UK£0.033 per share at 4.9% yield Eligible shareholders must have bought the stock before 23 February 2023. Payment date: 31 March 2023. Payout ratio is a comfortable 73% and the cash payout ratio is 80%. Trailing yield: 4.9%. Lower than top quartile of British dividend payers (5.5%). Higher than average of industry peers (2.3%). Reported Earnings • Jan 19
First half 2023 earnings released: EPS: UK£0.051 (vs UK£0.05 in 1H 2022) First half 2023 results: EPS: UK£0.051 (up from UK£0.05 in 1H 2022). Revenue: UK£76.1m (up 22% from 1H 2022). Net income: UK£6.37m (up 7.5% from 1H 2022). Profit margin: 8.4% (down from 9.5% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Professional Services industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Jan 18
Gateley (Holdings) plc Announces Interim Dividend for the First Half of 2023, Payable on 31 March 2023 Gateley (Holdings) Plc announced that the board proposed an interim dividend of 3.3 pence (H1 22: 3.0 pence) per share. This dividend will be paid on 31 March 2023 to shareholders on the register at the close of business on 24 February 2023. The shares will go ex-dividend on 23 February 2023. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Suki Thompson was the last independent director to join the board, commencing their role in 2017. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Price Target Changed • Nov 02
Price target decreased to UK£2.41 Down from UK£2.64, the current price target is an average from 6 analysts. New target price is 34% above last closing price of UK£1.80. Stock is down 21% over the past year. The company is forecast to post earnings per share of UK£0.13 for next year compared to UK£0.12 last year. Reported Earnings • Sep 14
Full year 2022 earnings released Full year 2022 results: Revenue: UK£137.2m (up 13% from FY 2021). Net income: UK£14.3m (up 8.5% from FY 2021). Profit margin: 10% (in line with FY 2021). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Professional Services industry in the United Kingdom. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 6 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Suki Thompson was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment improved over the past week After last week's 19% share price gain to UK£2.14, the stock trades at a trailing P/E ratio of 17.8x. Average forward P/E is 23x in the Professional Services industry in the United Kingdom. Total returns to shareholders of 54% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£3.52 per share. Upcoming Dividend • Feb 10
Upcoming dividend of UK£0.03 per share Eligible shareholders must have bought the stock before 17 February 2022. Payment date: 31 March 2022. Payout ratio is a comfortable 66% and the cash payout ratio is 77%. Trailing yield: 4.9%. Within top quartile of British dividend payers (4.2%). Higher than average of industry peers (1.8%). Reported Earnings • Jan 13
First half 2022 earnings: EPS and revenues exceed analyst expectations First half 2022 results: EPS: UK£0.05 (up from UK£0.04 in 1H 2021). Revenue: UK£62.3m (up 24% from 1H 2021). Net income: UK£5.92m (up 25% from 1H 2021). Profit margin: 9.5% (in line with 1H 2021). Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 3.7%. Earnings per share (EPS) surpassed analyst estimates by 3.7%. Over the next year, revenue is forecast to grow 3.9%, compared to a 9.9% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Recent Insider Transactions • Oct 27
COO, Partner & Executive Director recently sold UK£511k worth of stock On the 21st of October, Peter Davies sold around 232k shares on-market at roughly UK£2.20 per share. This was the largest sale by an insider in the last 3 months. This was Peter's only on-market trade for the last 12 months. Reported Earnings • Sep 09
Full year 2021 earnings released: EPS UK£0.11 (vs UK£0.10 in FY 2020) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2021 results: Revenue: UK£121.4m (up 11% from FY 2020). Net income: UK£13.2m (up 12% from FY 2020). Profit margin: 11% (in line with FY 2020). Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Price Target Changed • Aug 10
Price target increased to UK£2.62 Up from UK£2.33, the current price target is an average from 6 analysts. New target price is 23% above last closing price of UK£2.13. Stock is up 73% over the past year. Reported Earnings • Jul 21
Full year 2021 earnings released: EPS UK£0.11 (vs UK£0.10 in FY 2020) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2021 results: Revenue: UK£123.8m (up 13% from FY 2020). Net income: UK£13.2m (up 12% from FY 2020). Profit margin: 11% (in line with FY 2020). Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Price Target Changed • May 27
Price target increased to UK£2.41 Up from UK£2.00, the current price target is an average from 8 analysts. New target price is 20% above last closing price of UK£2.02. Stock is up 38% over the past year. Major Estimate Revision • May 27
Consensus EPS estimates increase to UK£0.11 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from UK£114.5m to UK£119.1m. EPS estimate increased from UK£0.07 to UK£0.11 per share. Net income forecast to grow 14% next year vs 20% growth forecast for Professional Services industry in the United Kingdom. Consensus price target up from UK£2.00 to UK£2.41. Share price rose 5.5% to UK£2.02 over the past week.