Gateley (GTLY) H2 2026 earnings summary

Executive summary

• Achieved strong revenue growth of 8.2% year-over-year to £194.3m, with 6.2% organic growth, reflecting resilient client demand and a diversified service offering.

• Contribution margin improved to 34.9% (up 110bps), despite Q4 transactional deferment and increased contingent contentious workstreams.

• Adjusted operating profit rose to £21.5m, with margin at 11.1%, reflecting a higher cost base now being addressed through redundancy consultation.

• GWW acquisition enhanced IP and trade mark business, and investment in the Jylo AI platform marked a key milestone in the AI roadmap.

• Entered FY27 with positive momentum, maintaining good activity levels amid macroeconomic uncertainty.

Financial highlights

• Revenue: £194.3m (FY25: £179.5m), up 8.2% year-over-year.

• Contribution: £67.7m (FY25: £60.7m), margin 34.9% (FY25: 33.8%).

• Adjusted operating profit: £21.5m (FY25: £20.9m), margin 11.1% (FY25: 11.7%).

• Adjusted EPS: 11.48p (FY25: 12.77p); total dividend per share: 5.3p (FY25: 9.5p).

• Net debt increased to £25.3m (FY25: £6.6m) due to working capital and GWW acquisition.

Outlook and guidance

• FY27 has started in line with Board expectations, with a continued focus on margin improvement and cost management.

• Ongoing investment in technology and AI, with the Jylo platform expected to drive productivity and margin gains.

• Confident in returns from recent investments and well positioned for sustainable, profitable growth.