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Gately Holdings acquires residential developments legal advice specialist

Gateley will pay a total consideration on completion of £4.15mln, of which £2.28mln will be paid in cash with the rest being satisfied through the issue of 1/16mln Gately shares.
Roof of house under consideration
The GCL team will integrate into Gateley's existing Residential Development team

Gateley Holdings PLC (LON:GTLY), the national commercial law and complementary professional services group, is to acquire GCL Solicitors for £4.15mln.

GCL specialises in legal advice for land and property clients. Once the acquisition goes through, the business will trade under the Gately name.

In the year ended 31 March 2018, GCL generated revenues of £6 million and underlying earnings (Ebitda) of around £600,000.

The board of Gately expects the acquisition to generate operational synergies and to be immediately earnings enhancing.

“The acquisition will further strengthen our leading position in the Residential Development sector nationally and provide us with a substantial presence in the southern market, which we see as critical in developing a full-service offering for our clients,2 said Michael Ward, the chief executive officer of Gately.

"There is a structural under-supply of new housing in the UK and we see this as a market that will remain strong. The south-east, in particular, will continue to be a significant engine for housing growth for the foreseeable future,” he added.

In a separate announcement, Gately said trading in the second half of the financial year (which runs to the end of April) had remained strong and the group’s performance for the full year is in line with market expectations.

The group has recorded growth across all of its segmental reporting lines and expects revenue to be not less than £84mln, up from £77mln in the previous financial year. Ebitda is tipped to be at least £16mln, up from £14.9mln the year before.

Shares in Gately were up 3.7% in early deals.

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