Gateley (Holdings) AIM:GTLY Stock Report

Gateley (Holdings) plc Provides Revenue Guidance for the Year Ended 30 April 2022

Gateley (Holdings) Plc Announces Planned Succession Board Changes

Gateley announced that Victoria Garrad, Group HR Director, was appointed to the Gateley (Holdings) Plc Board (the "Board") on 1 May 2022, in line with succession planning outlined in the Group's Half Year Results announcement issued on 12 January 2022. Victoria replaces Peter Davies, Chief Operating Officer ("COO"), who stepped down from the Board on 30 April 2022. Peter will continue to hold the position of COO for another 12 months, in order to facilitate an orderly transfer of responsibilities to Victoria who will then be appointed COO on 1 May 2023. Peter will remain on the Strategic Board and will continue to chair the Operations Board until 30 April 2023. Victoria joined Gateley in 1996 and has been the Group HR director, a non-plc board role, since 1 May 2017. Prior to this, she was a Partner in the legal services employment team and has been a member of the Operations Board since 2011 and the Strategic Board since 2017.

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.

Gateley (Holdings) Plc (AIM:GTLY) acquired Smithers Purslow from the existing management team and their related parties.

Gateley (Holdings) Plc (AIM:GTLY) acquired Smithers Purslow from the existing management team and their related parties for £20.0 million on April 19,2022. As per the terms of the transaction the total consideration will be paid on a on a debt free, cash free, normalized working capital basis. The initial consideration of £12.15 million will be satisfied on completion in part by the issuance of 3.31 million ordinary shares each in the capital of Gateley with a cash consideration of £5.4 million and a contingent payment of up to £7.85 million could be payable subject to Smithers Purslow achieving at least £4.5 million of EBITDA over the 24 months to September 30, 2023. the cash consideration will be funded from Gateley's new revolving credit facility announced on April 19,2022.Smithers Purslow will trade under the name Gateley Smithers Purslow with immediate effect. In the year ended September 30 2021, revenue was reported at £11.7 million. All members of the Smithers Purslow team will remain with the business and Managing Director, Stephen Fraser and Senior Director, Andrew Bussey will join the Gateley Smithers Purslow management board. The acquisition is expected to be earnings enhancing in the first year post acquisition. Richard Lindley of Liberum Capital Limited acted as financial advisor to Gateley (Holdings) Plc. Gateley (Holdings) Plc (AIM:GTLY) Completed it's acquisition of Smithers Purslow from the existing management team and their related parties for £20.0 million on April 19,2022.