Gateley pushes up revenue despite Middle East conflict impacting client sentiment - CEO says the firm is “well positioned to deliver future, profitable growth”
Professional services group Gateley is set to report revenue ahead of expectations for its 2026 financial year, despite a slowing of activity due to uncertainty around the UK November Budget, and recent developments in the Middle East impacting client sentiment.
In a trading update for the year ended 30 April 2026, the business said revenue for FY26 is expected to be about £193m, up 7 per cent on the prior year.
Underlying operating profit is expected of between £21m - £22m, in-line with consensus expectations.
Gateley said the 11.1 per cent adjusted operating margin reflects changing business mix and higher than anticipated transactional deferment as it progressed through Q4.
During Q2, the company experienced a slowing of certain transactional services activity due to uncertainty surrounding the Budget. Although this normalised, recent events in the Middle East, combined with a worsening medium term interest rate outlook, have impacted client sentiment.
As such, a mix of transactional timelines have paused and extended beyond the financial year.
During FY26, Gateley saw strong growth in targeted contentious workstreams, which has resulted in the group building significant contingent unbilled time.
The update said: "These workstreams are highly attractive from a margin perspective albeit remain dependent on successful outcomes for revenue and profit recognition.
"Overall the group's revenue performance was strong, reflecting broader improvements in utilisation and the diversified nature of the business across all of our platforms."
The business has also been boosted by the acquisition of Groom Wilkes & Wright, which has been "trading strongly and ahead of our expectations".
As previously reported, Gateley took cost actions during the year resulting in fee earner headcount marginally down against the start of the year and average team utilisation improving.
Within this, the group has also selectively hired in FY 26, especially in high-value work areas, including contentious litigation where activity levels continue to be strong.
Chief executive Rod Waldie said: "I am pleased to be reporting our full year results update. Whilst our Q4 experienced longer than anticipated transactional cycles as a result of the macro backdrop, we enter FY 27 with good activity levels across transactional and contentious workstreams, and we continue to see attractive mandated and pipeline opportunities across the group's platforms.
"With the diversified nature of the group's business, strong expertise across excellent teams and numerous growth opportunities, we are well positioned to deliver future, profitable growth."
