Market's view on Gateley Holdings
Published on April 2024
- Shares have fallen by 50% from their all-time highs in September 2021.
- Despite financial stability and dividend payments, there remains a paper loss until the share price reflects the company’s value.
- First half results showed cautious progress with subdued legal work but growth in complementary services; increased mention of “contentious work” suggests a focus on dispute resolution.
- Concerns were raised about the dilution effect of newly issued shares.
- Dividend announcements lacked a specific payment date, causing confusion among shareholders.
- The company is reviewed as part of the top 100 AIM companies, with a note on its resilience and potential underestimation by the market.
- Financial forecasts for 2023 and 2024 indicate record revenues and profits but slightly lower earnings and dividends.
- The company’s shares are considered undervalued based on its consistent performance and strong acquisition strategy.
- Discussion on why the company has succeeded compared to other listed law firms, highlighting its effective management of costs, control over bad debts, and strategic acquisitions.
- There’s a discrepancy in dividend records, questioning the accuracy of reported figures.