Research on Gateley (Holdings) Plc (GTLY:LON) from Equity Development
Gateley is a well-managed professional services Group with an excellent reputation for client service and an unbroken track record of revenue growth. Recent results reaffirmed expectations for FY27 alongside news of a rebased dividend and CEO change. Persistent share price weakness leaves the Group trading on depressed multiples (P/E 9%), which we consider a steep over-reaction to recent margin softness and the emergence of AI. In our view, management has a clear and credible strategy to drive a recovery in operating margins. After good news in respect of the Group’s first class action, we see scope for further potential positive catalysts for a rerating (including ongoing margin initiatives; progress on working capital; gains from the adoption of the Jylo AI platform; recovery in Corporate and/or Property sectors). Gateley has a P/E rating of just 4.9x (4.5x EV/EBITDA): a 60% discount to its 10-year average and a 50% discount to peers. We initiate coverage with a 150p Fair Value / share estimate vs a 60p last closing price.
View Full ResearchDisclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
