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Gateley (Holdings) (GTLY) AI Stock Analysis

GB:GTLY

Gateley (Holdings)

(LSE:GTLY)

Select Model
Rating:61Neutral
Price Target:GBX 78.00â–²(8.33% Upside)
Action:reiterated
Date:10/21/26

The score is primarily constrained by weakened and unstable profitability alongside rising leverage and shrinking equity, which increase financial risk. Technicals are constructive with the price above key moving averages and positive momentum, but valuation remains a headwind due to the elevated P/E, partially offset by the high dividend yield.

Positive Factors
Consistent Revenue GrowthConsistent top-line expansion indicates sustained demand for Gateley’s legal and advisory services across its client base. Continued growth provides a foundation for rebuilding earnings, supporting investment in fee-earner capacity, and strengthening the group’s ability to cross-sell complementary services over the next several quarters.
Negative Factors
Severe Margin CompressionThe sharp and sustained decline in net and EBIT margins shows that revenue growth has not translated reliably into earnings. If profitability remains near current levels, Gateley will have less capacity to absorb cost pressure, fund expansion, service obligations, or rebuild returns toward earlier performance.

Gateley (Holdings) (GTLY) vs. iShares MSCI United Kingdom ETF (EWC)

-60%-40%-20%0%20%40%GB:GTLY-33.94%EWC+23.59%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
GBP 97.33M
Dividend Yield
7.41%
Average Volume (3M)
181.52K
Price to Earnings (P/E)
31.8
Beta (1Y)
0.20
Revenue Growth
8.23%
EPS Growth
118.63%
Country
UK
Employees
1,594
Sector
Industrials
Sector Strength
63
Industry
Consulting Services

Gateley (Holdings) Business Overview & Revenue Model

Company Description

Gateley (Holdings) Plc engages in the provision of commercial legal services. It operates through the following segments: Business Services, Corporate, People, and Property. The Business Services segment deals with disputes from everyday operations,...

How the Company Makes Money

Gateley (Holdings) makes money primarily by delivering professional services to clients and billing for that work. The core revenue stream is fee income from legal services, typically charged on (i) time-based billing (hourly rates multiplied by time...

Gateley (Holdings) Financial Statement Overview

Summary

Revenue has grown consistently, but profitability has deteriorated sharply since 2022 and remains low (net margin ~1.5% in 2026; EBIT margin well below prior peaks). Balance-sheet risk has increased with debt-to-equity rising to ~1.05 and equity shrinking, while cash flow is positive but volatile with weaker recent cash conversion.

Income Statement

64Positive

Balance Sheet

52Neutral

Cash Flow

58Neutral
Financial statement breakdown
BreakdownTTMApr 2025Apr 2024Apr 2023Apr 2022Apr 2021
Income Statement
Total Revenue194.28M194.28M179.50M172.49M162.68M137.25M
Gross Profit186.34M186.34M82.03M78.09M155.44M131.03M
EBITDA23.48M23.48M17.21M24.19M25.10M34.13M
Net Income2.97M2.96M1.36M10.07M12.24M23.02M
Balance Sheet
Total Assets154.22M154.22M145.01M163.12M148.65M146.43M
Cash, Cash Equivalents and Short-Term Investments8.02M8.02M12.08M16.67M11.11M16.11M
Total Debt60.41M60.41M44.47M41.43M38.79M34.64M
Total Liabilities96.65M96.65M77.51M82.79M70.54M71.30M
Stockholders Equity57.57M57.57M67.50M80.33M78.11M75.14M
Cash Flow
Free Cash Flow2.90M2.90M6.41M16.98M9.01M4.21M
Operating Cash Flow5.65M5.65M7.93M18.03M11.11M5.31M
Investing Cash Flow-2.62M-2.62M3.24M194.00K-1.62M-43.00K
Financing Cash Flow-7.10M-7.10M-15.77M-12.65M-14.49M-8.77M

Gateley (Holdings) Technical Analysis

Technical Analysis SentimentNeutral
Last Price72.00

Price Trends

50DMA65.36Positive
100DMA59.74Positive
200DMA66.42Positive

Market Momentum

MACD2.16Positive
RSI54.36Neutral
STOCH30.56Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GTLY, the sentiment is Neutral. The current price of 72.00 is below the 20-day moving average (MA) of 72.28, above the 50-day MA of 65.36, and above the 200-day MA of 66.42, indicating a neutral trend. The MACD of 2.16 indicates Positive momentum. The RSI at 54.36 is Neutral, neither overbought nor oversold. The STOCH value of 30.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:GTLY.

Gateley (Holdings) Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

GB:GTLY against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
GB:KEYSGB:KEYS80OutperformGBP 240.27M19.1061.14%6.78%20.86%31.27%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
GB:GTLYGB:GTLY61NeutralGBP 98.18M31.784.61%7.41%8.23%118.63%
GB:KGHGB:KGH58NeutralGBP 141.59M29.624.58%3.41%28.41%-36.92%
GB:RWSGB:RWS51NeutralGBP 527.05M-5.46-12.70%4.47%-0.86%-481.50%
GB:CPIGB:CPI41NeutralGBP 307.23M-1.53-677.10%―-16.13%-1315.87%

* Industrials Sector Average

Performance Comparison

-50%0%50%100%GB:GTLYGB:CPIGB:RWSGB:KEYSGB:KGHDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
GB:GTLY and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
GB:GTLYGateley (Holdings)71.50-36.74-33.94%
GB:CPICapita plc256.50-50.00-16.31%
GB:RWSRWS Holdings142.0072.34103.84%
GB:KEYSKeystone Law Group Plc764.00161.3926.78%
GB:KGHKnights Group Holdings Plc165.00-2.38-1.42%

Gateley (Holdings) Corporate Events

Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial DisclosuresShareholder Meetings

Gateley shareholders back all AGM resolutions, boosting board flexibility

Positive
Oct 6, 2026

Gateley reported that all resolutions at its Annual General Meeting were passed on a poll, confirming strong shareholder support for the board’s proposals. Investors backed the receipt of the annual report, approval of the directors’ remu...

Business Operations and Strategy

Gateley Unifies Property Consultancies Under New Built Environment Brand

Positive
Sep 28, 2026

Gateley has launched Gateley Built Environment, a new unified brand that brings together its property consultancy businesses Gateley Smithers Purslow, Gateley Vinden, Gateley RJA and Gateley Hamer into a single market-facing identity. With around 325...

Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings

Gateley Publishes 2026 Annual Report and Sets October AGM in London

Neutral
Sep 11, 2026

Gateley (Holdings) Plc has published its Annual Report for the year ended 30 April 2026 and the Notice of its 2026 Annual General Meeting on its investor website. Hard-copy versions will be sent to shareholders who have opted for physical mailings, e...

Business Operations and StrategyFinancial DisclosuresLegal Proceedings

Gateley’s Austen Hays Secures First Class Action Settlement, Boosting Group Outlook

Positive
Sep 7, 2026

Gateley has announced that its class action arm, Austen Hays, has secured a settlement in its first class action case, marking a significant milestone for the business and delivering a resolution for the clients involved. Settlement payments are due...

Business Operations and StrategyExecutive/Board Changes

Gateley Grants New Restricted Share Awards and Modestly Expands Share Capital

Positive
Sep 4, 2026

Gateley has granted restricted share awards over 925,251 ordinary shares to senior leaders who have recently joined or demonstrated exceptional performance, largely using shares held by its Employee Benefit Trust. An additional 230,000-share award wa...

Executive/Board Changes

Incoming Interim CEO Martin Pike Increases Stake in Gateley

Positive
Jul 23, 2026

Gateley (Holdings) Plc reported that non-executive director and incoming interim chief executive officer Martin Pike purchased 50,000 ordinary shares in the company at an average price of 58 pence per share on 23 July 2026. Following this transaction...

Business Operations and StrategyExecutive/Board ChangesDividendsFinancial DisclosuresM&A Transactions

Gateley lifts revenue to record high, rebases dividend as it targets margin gains

Neutral
Jul 21, 2026

Gateley reported its eleventh consecutive year of revenue growth, with FY26 income rising 8.2% to £194.3m and organic growth of 6.2, while contribution margin improved despite a slightly lower adjusted operating margin. Statutory operating profi...

Business Operations and StrategyExecutive/Board Changes

Gateley CEO Rod Waldie to Step Down; Martin Pike Named Interim Chief

Neutral
Jul 21, 2026

Gateley has announced that Chief Executive Officer Rod Waldie will step down from his role and as an Executive Director on 1 August 2026 for personal, health-related reasons, though he will support the group during a transition period. The board has...

Business Operations and StrategyExecutive/Board Changes

Gateley CEO to Step Down as Board Installs Interim Leader and Launches Search

Neutral
Jul 21, 2026

Gateley (Holdings) has announced that Chief Executive Officer and Executive Director Rod Waldie will step down from his roles on 1 August 2026 for personal, health-related reasons, though he will remain available to support a smooth leadership transi...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 20, 2026