London-listed Gateley (AIM:GTLY) said it expects to report higher revenue this financial year despite slowed growth as a result of the coronavirus pandemic.
Gateley said the first half of the financial year saw ‘a solid trading performance’ while the Covid-19 disruption had constrained business growth in the final two months of FY20.
The commercial law firm said revenue will be no less than £108m for the twelve months ending 30 April, compared with £103.5m on-year.
The Board attributes a solid revenue performance to ‘the breadth and depth of the group's legal and consulting service lines and the resilient revenue streams that they yield,’ it said.
To minimise any financial impact as a result of the pandemic, Gateley has implemented salary cuts, furloughed several staff, and has cancelled or deferred all discretionary expenditure during the period.
Shares in Gateley were trading flat at 152p on Tuesday afternoon.
The Board also said it has also negotiated increased and extended working capital facilities of up to £20 million with the group's banking partners should such facilities prove to be necessary.
As a result of these actions, the Board said it maintains confidence that the group’s balance sheet is ‘robust’ and ‘well placed to benefit from organic and acquisitive growth opportunities.’
The company’s audited FY20 results are now expected to be announced in September 2020 to give the board more time to assess the short to medium-term business impact of Covid-19.
"The current trading environment is full of uncertainties,” said Rod Waldie, CEO of Gateley.
“With a stable and experienced management team, a resilient and diversified business model and a strong balance sheet, however, we believe that Gateley is well placed to weather the storm that is affecting all businesses,” he added.
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