GATELEY (HOLDINGS) PLC

Earnings Release • Dec 15, 2015

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RNS Number : 0337J

Gateley (Holdings) PLC

15 December 2015

For Immediate Release	15 December 2015

Gateley (Holdings) Plc

("Gateley" or the "Group")

Half Year Results for the six months ended 31 October 2015

"Solid six months trading performance…."

Gateley, (AIM:GTLY), a leading national full-service commercial law firm, reports its unaudited results for the six months ended 31 October 2015, being the first six months of the business as a Plc following admission of the Group to trading on AIM on 8 June 2015. The comparative period results set out below represent the LLP's results for the six months ended 31 October 2014 on a pro-forma basis.

Financial highlights

·      Revenue up 10.9% to £29.6m (2014: £26.7m)

·      Adjusted EBITDA* up 40.6% to £4.5m (Pro-forma 2014: £3.2m)

·      Profit before tax up 11.5% to £2.9m (Pro-forma 2014: £2.6m)

·      Basic EPS up 5% to 2.0p (Pro-forma 2014: 1.9p)

·      Initial interim dividend declared of 1.895p

* Adjusted underlying pro-forma EBITDA excludes income or expenses that relate to non-underlying items

Operational highlights

·      Successful IPO raised £30m in June 2015

·      Advised on 123 (2014: 117) corporate deals with an aggregate value in excess of £970m

·      Eight new lateral partner hires since 1st May with overall staff numbers increasing from 604 to 622 over the six month reporting period.

·      Utilisation of fee generating staff at 85% (October 2014: 83%)

·      Strong balance sheet, strong cash generation and new long term bank facilities provide a robust platform for growth and a smooth transition from the previous LLP to the new Plc corporate structure

Michael Ward, CEO of Gateley, commented:

"I am delighted with the performance of the business during the six month period to 31 October 2015, a period in which we have achieved and in some cases over-achieved against the targets we set ourselves at the time of our IPO in June 2015.

The Group's ability to deliver a strong first half performance, in an improving but challenging market, whilst at the same time transitioning the business from an LLP to a Plc not only highlights the capabilities of the senior management team but also reconfirms our strategy of using our more flexible Plc status to enhance shareholder value through organic growth and strategic acquisitions.

These results represent a very solid start to our life as a Plc and I believe will serve to further raise our profile, differentiate us from our direct competitors and attract quality staff. As such, the Board looks forward to the remainder of its first year as a Plc with confidence."

Enquiries:

Gateley (Holdings) Plc
Nick Smith, Acquisitions Director and Head of Investor Relations	+44 207 653 1665
Cara Zachariou, Head of Communications	+44 121 234 0074 or +44 7703 684 946
Cantor Fitzgerald Europe - Nominated adviser and broker	+44 207 894 7000
David Foreman, Philip Davies, Michael Reynolds (Corporate Finance)
David Banks, Tessa Sillars (Corporate Broking)
Buchanan - Financial PR adviser	+44 207 466 5000
Mark Edwards Helen Chan	Gateley@buchanan.uk.com
Jane Glover

CEO Operational Review

Whilst the legal market remains improving but challenging all of our business groups have increased their turnover when compared to the same period last year.  Our Corporate Group saw an increase of over 20% in their revenues thereby maintaining its third position nationally for deal volume in the Experian Corporate Finance - M&A advisor legal table, and first place in the Midlands.  The new residential development team which was set up in London at the beginning of the year has made significant steps forward and has been well received by existing national house builder clients who have offices located in the South East.

Since 1 May 2015 we have welcomed eight new lateral partner hires to the business across our offices evidencing our ability to continue to attract and retain talent.  Our overall staff numbers have increased from 604 to 622 over the six month reporting period.

We have announced our intention to open a full service office in Reading and the recruitment of staff is proceeding well.

We continue to be successful in maintaining our presence on legal panels and can confirm re-appointment to the national legal panel for Taylor Wimpey for a further three years and to one of our UK clearing bank panels for a further five years.

We are continuing to explore acquisitions of businesses providing complementary professional services to enable us to further diversify our income streams going forward.

We are consulting with all employees about the shape and form of an all staff share ownership scheme which we are committed to delivering before the end of this financial year.

My thanks go to our staff for their continuing support and encouragement.

Finance Director's review

For clarity of understanding and ease of future comparison, we have set alongside our six month trading results for the period to 31 October 2015, Pro-forma financial results for the six months of the prior year as if the Plc structure of the Group had been in place during the prior year.  A summary of the corporate structure changes effected in order to move from an LLP to a Plc is included in Note 1 below.

During the six months ended 31 October 2015 the Group delivered solid organic revenue growth of 10.9% with total revenues of £29.6m (Pro-forma 2014: £26.7m). This growth continued the trend in revenue growth seen in the preceding twelve months to 30 April 2015.  In the six months to 31 October 2015 the business has seen measured expansion across all of its segmental reporting divisions with fee growth of between 4.8% and 22.3% being achieved across the Group's five divisions operating in six regional locations across the UK, complemented by the expanding Dubai office. 

Operating costs rose by 6.8% to £25.3m (Pro-forma 2014: £23.7m).  This growth in operating costs has been driven by the Board continuing to invest in the future of the business and its people for the benefit of clients.  Fee generating staff rose by 3.5% to 386 (Pro-forma 2014: 373).  Personnel costs rose accordingly by 8.1% from £16.7m to £18m, however, as the business continues to scale, this cost fell to 60.8% of revenue (Pro-forma 2014: 62.5%).  In addition to expanding the number of fee earners, the business has also increased its efficiency with utilisation of fee generating staff rising to 85% (2014: 83%).

Other operating expenses increased by 4.3% to £7.3m (Pro-forma 2014: £7m). This increase in costs is as a direct result of additional spending incurred to capitalise on the brand-enhancing marketing opportunities post listing together with associated professional costs resulting from the Group's new corporate requirements.  

Adjusted EBITDA of £4.5m is up by 40.6% from £3.2m and Pre-tax Profit was up 11.5% to £2.9m (Pro-forma 2014: £2.6m).  Adjusted numbers are stated after excluding income or expenses that relate to non-underlying items.  Non-underlying items include one-off professional costs in respect of the Group's future strategy together with the costs associated with the IPO in June.  The net position of the Group balance sheet has transformed from nil, as is typical with a law firm LLP structure, to £7m (before dividend), positioning the business well for future expansion.

Earnings per share

Reported basic and diluted earnings per share were 2.0p (Pro-forma 2014: 1.9p).  

Dividend

The Board intends to adopt a progressive dividend policy to reflect the expectation of future cash flow generation and long-term earnings potential of the Group, paying up to 70 per cent of after tax profits each year.  Based on our interim results, the Board is pleased to announce an interim dividend of 1.895p per share which will be paid on 22 January 2016 to shareholders on the register at the close of business on 29 December 2015.  The shares will go ex-dividend on 24 December 2015.

Cash flow and financing

Cash generated from operating activities is in excess of profits after tax for the first six months of trading as a Plc.

Closing cash totalled £7.8m arising from the change in funding structure and new debt funding. The Group's net debt position as at 31 October 2015 has changed as a result of replacing former members' capital, otherwise known as "fixed capital", with £10m of new term bank debt, together with the injection of new money from the issue of shares totalling £5m.  The total injection of £15m of new cash into the Group balance sheet on admission has been partially used to repay in full all former members' fixed capital and undistributed LLP profits in respect of the year ended 30 April 2014.  The remaining undrawn profits of the LLP for the year ended 30 April 2015 were converted into loans from members of the LLP upon admission.  The remaining surplus funds continue to assist in the on-going working capital funding of the Group.

Net Debt movement since 30 April 2015

	As at 31 October 2015	As at 30 April 2015
	£m	£m
Cash and cash equivalents	7.8	2.6
Fixed capital	-	(6.7)
Term bank loans	(9.9)	-
Net debt before loans from former members of Gateley Heritage LLP	(2.1)	(4.1)
Loans from former members of Gateley Heritage LLP	(9.8)	(10.2)
Net debt after loans from former members of Gateley Heritage LLP	(11.9)	(14.3)

Current trading and outlook

Trading since 31 October 2015 has continued in the same vein as the previous eighteen months in what remains an improving but challenging market.  It has been pleasing to see that our new Plc status continues to raise our profile and attract interest from potential acquisition targets and lateral hires, as well as the media.  We feel confident the Group can deliver in line with expectations and that it is well placed to do so after a busy first six months.

Gateley (Holdings) Plc

Consolidated income statement and other comprehensive income

For the period ended 31 October 2015

			Note	Unaudited Period from 1 May 2015 to 31 October 2015	Pro-forma Unaudited Period from 1 May 2014 to 31 October 2014
				£000	£000
Revenue			2	29,636	26,672
Other operating income			3	149	209
Personnel costs			5	(18,014)	(16,661)
Other operating expenses				(7,298)	(7,001)
Adjusted EBITDA			4	4,473	3,219
Share based payments				(100)	-
Depreciation				(357)	(388)
Non-underlying items
One off professional costs				(171)	(41)
IFRS transitional lease adjustment				-	(186)
Admission costs				(755)	-
Operating profit				3,090	2,604
Net financing (expense)/income				(160)	15
Profit before tax				2,930	2,619
Taxation			6	(800)	(602)
Profit for the period after tax				2,130	2,017

Earnings per share

Basic and diluted earnings per share (pence)		7	2.0	1.9

The results for the periods presented above are derived from continuing operations.  There were no other items of comprehensive income to report.

Gateley (Holdings) Plc

Consolidated statement of financial position

at 31 October 2015

	Note	Unaudited as at 31 October 2015	Pro forma unaudited as at 31 October 2014
		£000	£000
ASSETS
Non-current assets
Property, plant and equipment		1,422	1,663
Investment property		164	160
Investments		70	30
Total non-current assets		1,656	1,853
Current assets
Trade and other receivables	9	31,238	25,161
Cash and cash equivalents		7,808	12,293
Total current assets		39,046	37,454
Total assets		40,702	39,307
Non-current liabilities
Other interest-bearing loans and borrowings	10	(7,920)	(8,000)
Loans from former members of Gateley Heritage LLP	10	(1,538)	(1,500)
Provisions	12	(339)	(612)
Total non-current liabilities		(9,797)	(10,112)
Current liabilities
Other interest-bearing loans and borrowings	10	(1,987)	(2,000)
Loans from former members of Gateley Heritage LLP	10	(8,317)	(8,714)
Trade and other payables	11	(13,466)	(11,204)
Provisions	12	(150)	(260)
Total current liabilities		(23,920)	(22,178)
Total liabilities		(33,717)	(32,290)
NET ASSETS		6,985	7,017
EQUITY
Share capital	13	10,527	10,527
Share premium		4,333	4,423
Merger reserve		(9,950)	(9,950)
Treasury reserve		(55)	-
Retained earnings		2,130	2,017
TOTAL EQUITY		6,985	7,017

Gateley (Holdings) Plc

Consolidated cash flow Statement

for the unaudited period ended 31 October 2015

		Note	Unaudited Period from 1 May 2015 to 31 October 2015
			£000
Cash flows from operating activities
Profit for the period			2,130
Adjustments for:
Depreciation and amortisation			357
Financial income			(121)
Financial expense			280
Profit on disposal of property, plant and equipment			(2)
Tax expense		8	800
			3,444
Decrease in trade and other receivables			457
Decrease in trade and other payables			(987)
Decrease in provisions			(48)
Net cash flows from operations			2,866
Tax expense paid			-
Net cash from operating activities			2,866
Investing activities
Interest and other financial income paid			(159)
Acquisition of property, plant and equipment			(280)
Cash acquired with subsidiary			2,719
Proceeds from sale of property, plant and equipment			2
Net cash from investing activities			2,282
Cash flows from financing activities
Proceeds from issue of shares		13	4,910
Proceeds from new term bank loans		10	9,907
Repayment of loans from former members of Gateley Heritage LLP			(5,402)
Repayment of fixed capital from former members of Gateley Heritage LLP			(6,717)
Payment of finance lease liabilities			(38)
Net cash from financing activities			2,660
Net decrease in cash and cash equivalents			7,808
Cash and cash equivalents at beginning of period			-
Cash and cash equivalents at end of period			7,808

The consolidated cash flow statement relates to the Group's transactions for the six month period from 1 May 2015 and 31 October 2015.  It is not prepared from the Pro-forma position of the Group as demonstrated elsewhere within this announcement as it purposely displays the exact cash performance of the Group in respect of its conversion period from LLP to Plc. 

Gateley (Holdings) Plc

Consolidated statement of changes in equity

for the unaudited period ended 31 October 2015

	Share capital	Share premium	Merger reserve	Treasury reserve	Retained earnings	Total equity
	£000	£000	£000	£000	£000	£000
On incorporation	-	-	-	-	-	-
Changes in equity for the six months ended 31 October 2015
Total comprehensive income for the period	-	-	-	-	2,130	2,130
Repurchase of treasury shares	-	-	-	(55)	-	(55)
Issue of shares	10,527	4,483	(9,950)	-	-	5,060
Share issue costs	-	(150)	-	-	-	(150)
Balance at 31 October 2015	10,527	4,333	(9,950)	(55)	2,130	6,985

The following describes the nature and purpose of each reserve within equity:

Share premium - Amount subscribed for share capital in excess of nominal value.

Merger reserve - Represents the difference between the nominal value of shares acquired by the company in the share for share exchange with the former Gateley Heritage LLP members and the nominal value of shares issued to acquire them.

Treasury reserve - Represents the repurchase of shares for future distribution by Group's Employee Benefit Trust.

Retained earnings - All other net gains and losses and transactions with owners not recognised anywhere else.

Gateley (Holdings) Plc

Notes

for the unaudited period ended 31 October 2015

1              Basis of preparation and significant accounting policies

These interim unaudited financial statements for the six months ended 31 October 2015 have been prepared on the basis of the accounting policies expected to be adopted for the period ended 30 April 2016.  These are in accordance with the Group's accounting policies as set out in the historical financial information included in the AIM Admission Document.

The recognition and measurement requirements of all International Financial Reporting Standards ('IFRSs'), International Accounting Standards ('IAS') and interpretations currently endorsed by the International Accounting Standards Board ('IASB') and its committees as adopted by the EU and as required to be adopted by AIM listed companies have been applied.  AIM-listed companies are not required to comply with IAS 34 'Interim Financial Reporting' and accordingly the Company has taken advantage of this exemption.

The financial information contained in this interim report does not constitute statutory accounts for the six months ended 31 October 2015 and should be read in conjunction with the historical financial information included in the AIM Admission Document. 

The condensed unaudited financial statements for the six months to 31 October 2015 have not been audited or reviewed by auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.

The Pro-forma adjustments and results, used within the consolidated income statement, have been prepared consistently with information provided on historical results in the Group's Admission Document upon listing.  The balance sheet, cash flow statement and related notes include Pro-forma adjustments that demonstrate the inclusion of partners' pay as a personnel cost, a Pro-forma corporation tax charge together with the drawdown of term loans totalling ten million pounds, repayable over five years.  The proceeds received from the term loans were used to repay individual members' fixed capital and support working capital after admission.  Also included within the Pro-forma changes is the receipt by the Group of net proceeds from the Placing of five million pounds.

Legal status

Gateley (Holdings) Plc was incorporated on 13 November 2014. On 29 May 2015 the Company acquired 100 per cent of the issued share capital of Gateley Plc which had, on the same day, acquired the business assets and liabilities of Gateley Heritage LLP, formerly the partnership of Gateley LLP.  Following this Group reorganisation the financial statements for the period ended 31 October 2015 have been prepared on a merger accounting basis as though this Group structure had always been in place and a full six month set of results is therefore presented.  The first day of trading of the Group included in this six month interim statement was therefore 1 May 2015. 

On 8 June 2015, Gateley (Holdings) Plc was admitted to the AIM market of London Stock Exchange Plc.

Going concern

The Company and the Group remain cash generative and have sufficient medium term facilities in place, including two unsecured term loans for £5 million each repayable quarterly over five years together with unsecured overdraft facilities of up to £6 million.

On the basis of their assessment of the Group's financial position, forecast and projections, the Group's directors have a reasonable expectation that the Company will be able to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing these initial accounts.

Statement of Directors' responsibilities

The Directors confirm that, to the best of their knowledge, this condensed set of consolidated financial statements have been prepared in accordance with the AIM Rules.

Cautionary statement

This document contains certain forward-looking statements with respect of the financial condition, results operations and business of Gateley.  Whilst these statements are made in good faith based on information available at the time of approval, these statements and forecasts inherently involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future.  There are a number of factors that could cause the actual results of developments to differ materially from those expressed or implied by these forward looking statements and forecasts.  Nothing in this document should be construed as a profit forecast.

Gateley (Holdings) Plc

Notes

for the unaudited period ended 31 October 2015

2              Operating segments

The Chief Operating Decision Maker ("CODM") is the Strategic Board. The Group have the following five strategic divisions, which are its reportable segments.  These divisions offer different products and services and are managed separately because they report different specialisms from the legal teams in those divisions.

The following summary describes the operations of each reportable segment:

Reportable segment	Operations
Banking and Financial Services	Provision of legal advice in respect of asset finance, banking and corporate recovery services.
Corporate	Provision of legal advice in respect of corporate, private client and taxation services.
Business Services	Provision of legal advice in respect of commercial, commercial dispute resolution (litigation), regulatory, shipping, transport and insurance services.
Employees, Pensions and Benefits	Provision of legal advice in respect of employment and pension services.
Property	Provision of legal advice in respect of construction, planning, real estate and residential development services.

The revenue and operating profit are attributable to the principal activities of the Group.  A geographical analysis of revenue is given below:

	2015	Pro-forma 2014
	£000	£000
United Kingdom	28,514	25,588
Europe	498	521
Middle East	429	300
North and South America	122	57
Asia	49	141
Other	24	65
	29,636	26,672

Six month period to 31 October 2015

	Banking and Financial  Services	Corporate	Business Services	Employee Pensions and Benefits	Property	Total segments	Other expenses and  movement in unbilled revenue	Total
	£000	£000	£000	£000	£000	£000	£000	£000
Segment revenue	5,051	5,210	4,442	3,688	10,116	28,507	1,129	29,636
Segment contribution (as reported internally)	1,820	1,568	2,017	1,679	4,813	11,897	1,129	13,026
Costs not allocated to segments								(9,937)
Net financial expense								(159)
Profit before tax								2,930

Gateley (Holdings) Plc

Notes

for the unaudited period ended 31 October 2015

Operating segments (continued)

Pro-forma six month period to 31 October 2014

	Banking and Financial  Services	Corporate	Business Services	Employee Pensions and Benefits	Property	Total segments	Other expenses and  movement in unbilled revenue	Total
	£000	£000	£000	£000	£000	£000	£000	£000
Segment revenue	4,818	4,261	4,023	3,129	8,889	25,120	1,552	26,672
Segment contribution (as reported internally)	1767	1,064	1,757	1,211	3,742	9,541	1,552	11,093
Costs not allocated to segments								(8,489)
Net financial expense								15
Profit before tax								2,619

No other financial information has been disclosed as it is not provided to the CODM on a regular basis.

3              Other operating income

	2015	Pro-forma 2014
	£000	£000
Rental income	145	189
Gateley (Manchester) LLP income	4	20
	149	209

4              Operating profit

Operating profit is stated after charging the following:

	2015	Pro-forma 2014
	£000	£000
Operating lease costs	56	64
Operating lease costs on property	1,339	1,237
Depreciation on owned assets	357	388
Profit on sale of fixed assets	(2)	(4)
Foreign exchange losses	2	13
Auditor's remuneration - audit services	46	46
Auditor's remuneration - other assurances (included in listing costs)	60	-
Auditor's remuneration - tax advisory services	6	10
Auditor's remuneration - corporate finance services (included in listing costs)	300	-
Share based payment expense	100	-
Non-underlying items
Listing costs	926	-
IFRS transitional lease adjustment	-	186
One-off professional costs	-	41

Gateley (Holdings) Plc

Notes

for the unaudited period ended 31 October 2015

Non-underlying items include one-off professional costs in respect of the Group's future strategy, on-going property lease restructuring costs and listing costs in respect of the Group's admission to the AIM market of London Stock Exchange Plc.  Additional costs also arose in 2014 resulting from the release of operating lease incentives in accordance with IFRS, whereby lease incentives are now recognised over the full term of the lease.

5              Employee benefit expenses

The average number of persons employed by the Group during the year, analysed by category, was as follows:

		Number of employees
		2015	Pro-forma 2014
	Legal fee generating staff	386	373
	Administrative staff	231	216
		617	589
		2015	Pro-forma 2014
		£'000	£'000
Employee benefit expenses (excluding directors and key management personnel)
Wages and salaries		15,367	14,304
Social security costs		1,687	1,570
Pension costs		287	252
Share based payment expenses		99	-
		17,440	16,126
Benefit expenses of directors and key management personnel
Wages and salaries		503	465
Social security costs		70	70
Share-based payment expenses		1	-
		574	535
	Total employee benefit expense including directors and key management personnel	18,014	16,661

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the directors of the company as well as certain Directors of subsidiary companies

Gateley (Holdings) Plc

Notes

for the unaudited period ended 31 October 2015

6              Taxation

	2015	Pro-forma 2014
	£000	£000
Current tax expense
Current tax on profits for the period	800	602
Total current tax	800	602
Deferred tax expense
Origination and reversal of temporary differences	-	-
Total tax expense	800	602

The reasons for the difference between the actual tax charge for the period and the standard rate of corporation tax in the United Kingdom applied to profits for the period are as follows:

	2015	Pro-forma 2014
	£000	£000
Profit for the period	2,930	2,619
Tax using the Company's domestic tax rate of 20% (2014 - 22.2%)	586	580
Expenses not deductible for tax purposes	254	-
Timing differences	(40)	22
Total tax expense	800	602

7              Earnings per share

Pro-forma basic earnings per share, shown on the consolidated income statement, is based on profit after tax divided by 105,274,159, being the weighted average total number of shares in issue during the period.

8              Dividends

An interim dividend of 1.895p per share has been declared on these six month results to 31 October 2015 totalling £1,994,945.   This dividend will be paid on 22 January 2016 to shareholders on the register at the close of business on 29 December 2015.  The shares will go ex-dividend on 24 December 2015.  This dividend has not been recognised as a liability in these interim statements.

Gateley (Holdings) Plc

Notes

for the unaudited period ended 31 October 2015

9              Trade and other receivables

			2015	Pro-forma 2014
			£000	£000
Trade receivables			19,967	15,304
Unbilled revenue			9,314	8,230
Prepayments and accrued income			1,957	1,627
			31,238	25,161

10           Other interest-bearing loans and borrowings

The contractual terms of the Group's interest-bearing loans and borrowings (including loans from former members of Gateley Heritage LLP), which are measured at amortised cost are described below.

	2015		Pro-forma 2014
	Face value	Carrying amount	Face value	Carrying amount
	£000	£000	£000	£000
Non-Current liabilities
Unsecured bank loan	7,920	7,920	8,000	8,000
Loans from former members	1,538	1,538	1,500	1,500
	9,458	9,458	9,500	9,500
Current liabilities
Unsecured bank loan	1,987	1,987	2,000	2,000
Loans from former members	8,317	8,317	8,714	8,714
	10,304	10,304	10,714	10,714

On 8 June 2015 Gateley Plc entered into two new loan agreements of £5m each.  The total £10m of term loans are repayable quarterly over 5 years commencing on 8 December 2015.  Interest is chargeable at 2.25% over LIBOR.  The injection of cash from these loans is shown on the consolidated cash flow statement.

On 8 June 2015 undrawn surplus profits and tax provisions owed to former members of Gateley Heritage LLP were converted into unsecured loans from members.  Interest is chargeable at 0.5% over Bank of England base rate.  Current forecasting projections show all such loans as repayable within two years of admission to the AIM market.  Fixed capital loans totalling £6.7m represented borrowings from former members which were repaid following admission to the AIM market on 8th June 2015.

The Group has overdraft facilities, repayable on demand, totalling £6 million.

Included within trade and other payables are gross finance lease liabilities.

Gateley (Holdings) Plc

Notes

for the unaudited period ended 31 October 2015

11           Trade and other payables

			2015	Pro-forma 2014
			£000	£000
Current
Trade payables			3,474	3,068
Other taxation and social security payable			3,833	2,814
Other payables			493	271
Accruals and deferred income			5,647	4,975
Obligations under finance leases			19	76
			13,466	11,204

12           Provisions

Professional indemnity

	2015	Pro-forma 2014
	£000	£000
At beginning of period	537	467
Provisions made during the period	-	405
Provisions used during the period	(48)	-
Provisions reversed during the period	-	-
At end of period	489	872
Non-current	339	612
Current	150	260
	489	872

The professional indemnity provision represents amounts equal to the insurance excesses payable on outstanding claims against the Group which are covered by the Group's professional indemnity insurance policy.

Gateley (Holdings) Plc

Notes

for the unaudited period ended 31 October 2015

13           Share capital

Authorised

			2015	2015
			Number	£'000
Total ordinary shares of 10p each			105,274,159	10,527,416

Issued and fully paid

			2015	2015
			Number	£'000
Ordinary shares of 10p each
On incorporation - 13 November 2014			10	1
Issued on acquisition of business			100,000,001	10,000,000
Issued on initial public offering			5,274,148	527,415
At 31 October 2015			105,274,159	10,527,416

The share capital reflects the shares issued to acquire Gateley Plc on 29 May 2015.  In line with the requirements of merger accounting the structure and share capital issued has been recorded as though it had always been in place.

On the Group's admission to the AIM market of London Stock Exchange Plc on 8th June 2015 a further 5,274,148 10p ordinary shares were issued and fully paid up.

14           Business combinations

On 19 May 2015, the Company acquired 100% of the share capital of Gateley EBT Limited (formerly Ensco 1133

Limited) for £1.

On 29 May 2015, the Company acquired 100% of the share capital of Gateley Plc (formerly Ensco 1102 Limited)

via a share for share exchange.

On 29 May 2015, the Company acquired 100% of the share capital of Entrust Pension Limited for £1.

On 29 May 2015, the Company acquired the membership interest of Gateley UK LLP for £1.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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