Gateley announces intention to become listed company

Commercial law firm Gateley is to seek a stock market listing, it confirmed today.

Gateley (Holdings) plc will launch an initial public offering (“IPO”) and apply for admission of its ordinary shares to trade on AIM, the London Stock Exchange’s international market for smaller growing companies.

The move covers Gateley's practice in England & Wales, which has offices in Birmingham, Leeds, Leicester, London, Manchester and Nottingham, as well as its office in Dubai, but not the separate practice HBJ Gateley in Scotland, where external ownership is not yet permitted.

It could make Gateley the first UK law firm to become listed, though Australian company Slater & Gordon, the world's first listed firm, has bought a number of UK practices. Irwin Mitchell, one of the first practices to become an ABS, has long been considering a listing and has also appointed City advisers.

Gateley has reported compound annual growth rate over the last 10 years of 14.3% in revenue and 14.8% in operating profit, and for the year ending 30 April 2014, it reported revenues of £54.6m, up from £51.4m, and adjusted profit before tax of £7.4m, up from £5.1m. Six month figures to 31 October 2014 were revenues of £26.7m, up from £23.1m, and adjusted profit before tax of £2.6m, up from £1.0m.

In 2014 Gateley adopted an alternative business structure (“ABS”), allowing investment by non-lawyers. Its board believes the combination of the new ABS, the transition from an LLP to a PLC, and "first mover" advantage through the proposed AIM listing, will provide greater opportunities for growth and geographical expansion, including by acquisition whether of teams or entire practices, as well as the opportunity to acquire businesses offering complementary professional and other business services. It also believes it will add to Gateley’s recruitment appeal and raise the firm's general profile.

Chief executive officer Michael Ward commented: “Gateley is a successful, fast growing and entrepreneurial legal services group which operates in a rapidly changing marketplace. We believe the catalysts for value creation are now to acquire, incentivise, differentiate and where sensible diversify. These opportunities for growth will undoubtedly be most accessible as a PLC and we want to be the first to be able to take advantage of them."