Gateley (holdings) Plc · LSE:GTLY
Gateley (holdings) — FY2020 Earnings Presentation
37 slides from Gateley (holdings)'s earnings presentation, Apr 30, 2020
Slide 1: Preliminary results Year ended 30 April 2020
Preliminary results Year ended 30 April 2020 1
Slide 2: Presentation team
Presentation team Neil Smith FCCA Rod Waldie Nick Smith Finance Director Chief Executive Officer Acquisitions Director 2
Slide 3: Overview
Overview 3
Slide 4: Overview
Overview Solid results for FY20 Further progression of strategy implementation during FY20 Resilience through diversification, differentiation and culture Managed operations aligned to profitable and cash positive trading year to date Cautious anticipation of continued improvement in current year tr
Slide 5: Financial highlights
Financial highlights 5
Slide 6: Financial highlights
Financial highlights Group revenue Group revenue Revenue Net assets increased mix growth increased Legal Organic growth +46.4% +6.1% 90% +3.5% to Consulting 10% Acquired £44.8m 2.6% Underlying Underlying operating basic EPS PAT Net debt PBT increased decreased decreased decreased -12.6% -71.9% +3.9%
Slide 7: FY performance
FY 20 performance Strong performance, impacted in Q4 by COVID-19, decisions taken quickly to conserve cash FY 20 FY 19 Underlying PBT bridge (£m) GROWTH (£m) (£m) 2.7 Revenue 109.8 103.5 +6.1% 3.6 (0.3) Underlying (6.0) operating profit 18.7 18.0 +3.9% 18.1 18.1 before tax Underlying profit 18.1 18.
Slide 8: Segmental analysis
Segmental analysis Sustainable growth through resilient and balanced service lines FY 20 FY 19 movement Drivers for growth £m £m Banking and Financial 16.7 17.0 (1.8)% • Surety led instructions quieter compared to FY 19 Services • International litigation opportunities • Banking/Administration activ
Slide 9: Activity and Working capital trends (4 mths to Aug 20)
Activity and Working capital trends (4 mths to Aug 20) Cumulative Utilisation Year end 90 Utilisation impact recovering 85 82 80 Resilience of complementary service lines 75 75 70 65 60 55 50 Oct Nov Dec Jan Feb Ma r Apr Ma y Jun Jul Aug Oct 19 to Aug 20 Oct 18 to Aug 19 Debtor days 100 95 Debtor da
Slide 10: FY cost decisions
FY 21 cost decisions Carefully managed costs to mitigate pandemic challenge FY20 FY19 £5.4m from pay cuts across all staff £m £m £5m COVID-19 induced cost savings – property, travel, marketing Revenue 109.8 103.5 c£2m furlough income receipts FY21 Other income 0.7 0.3 Underlying costs for FY21 expec
Slide 11: Revenue growth through economic cycles
Revenue growth through economic cycles YOY growth REVENUE (£m) Balanced business model with resilience 109.8 103.5 Ability to growth during downturn 86.1 Established business with track record 77.6 No significant client or sector dependency 67.1 60.9 53.8 50.7 44.9 43.2 33.3 29 26.8 22.5 19.4 17.2 1
Slide 12: Financial summary
Financial summary FY20 summary FY21 year-to-date summary Good momentum from FY19 into Swift action taken to: FY20, disrupted year due to Brexit, Realise cost savings election and then COVID-19 Conserve cash Further investment in staff and 4 Ample facilities in place acquisitions improving balance an
Slide 13: A proven business model
A proven business model 13
Slide 14: Resilience: Quality
Resilience Quality Industry rankings: Gateley Legal t-three 2020 Experian Market IQ British Legal Awards 2019 – UK Law Firm of the Training Journal Awards M&A Advisor League for Year 2019 – Best Leadership H1 – ranked no 1 Thames Valley Deal Awards 2020 – Corporate Development Programme nationally a
Slide 15: Resilience: Scale and Breadth
Resilience Scale and Breadth 16 legal lines 5 consulting lines 438 qualified lawyers; 21 surveyors; 10 accountants; 2 tax accountants; 11 occupational psychologists; 11 behavioural consultants More than 10,000 live client matters in September 2020 11 offices in the UK 52% 4k 20% 4,000 17 increase in
Slide 16: Resilience: Revenue YOY movement
Resilience Revenue YOY movement (%) 2008 2009 2010 2012 2013 2014 2015 2016 2017 2018 2019 2020 BFS 5 81 139 9 20 6 13 11 11 3 10 -2 Corp 22 -19 -13 8 7 -1 14 13 25 13 6 17 BS 38 48 -2 8 29 -7 -1 16 7 11 11 -7 EPB 0 -7 62 7 -3 -9 13 3 -3 6 6 18 Prop 25 -4 -6 13 3 26 16 11 20 14 30 -3 Consultancy - -
Slide 17: Resilience: People
Resilience People Connecting with our people during lockdown Health & Wellbeing Employee intranet – 25k hits per week Staff survey Pay Employee newsletter – 85% The future readership Our diversity, inclusion and wellbeing network groups provide support for our people through a number of Leadership –
Slide 18: Resilience: Finances
Resilience Finances Group revenue Net assets Net debt £109.8m £44.8m £0.9m 19
Slide 19: Progress with strategic plan
Progress with strategic plan 20
Slide 20: Our "Platforms"
Our “Platforms” Grouping professionals facing common markets/sectors deeper understanding a differentiated, compelling proposition seamless multi-disciplinary service delivery cross-selling opportunities Established Platforms Property Human Capital “Under construction” Corporate Business Services 21
Slide 21: Platform composition
Platform composition under construction under construction Property Human Capital Corporate Business Services Platform Platform Platform Platform Gateley Legal Gateley Legal Gateley Legal Gateley Legal Gateley Capitus Kiddy & Partners Gateley Capitus Gateley Hamer t-three International Investment Se
Slide 22: Theory in practice: Property Platform
Theory in practice Property Platform Town centre regeneration Infrastructure Housing schemes Stockton - on - Tees Gateley Hamer Gateley Legal Persona Associates Dudley Interchange Gateley Hamer Gateley Legal Persona Associates Slough Gateley Hamer Gateley Legal 23
Slide 23: Theory in practice: Human Capital Platform, virtual delivery
Theory in practice Human Capital Platform Cyber talent threat development programme Virtual delivery experiential event Gateley Legal t-three crisis and risk management virtual Global Pharma Co. delivery 24
Slide 24: Theory in practice: Human Capital Platform, virtual delivery
Theory in practice Human Capital Platform Strategic BD talent opportunity assessment leadership Virtual delivery development Kiddy & Partners t-three cultural change International Consulting virtual delivery Engineering co. 25
Slide 25: Theory in practice: Human Capital Platform
Theory in practice Human Capital Platform Gateley Legal t-three employment law coaching/ Transport Systems co. mentoring programme 26
Slide 26: Growth enhanced by our Platforms
Growth enhanced by our Platforms Acquired Hamer Acquired Kiddy Acquired Vinden Acquired IIS Acquired Capitus Acquired t-three Acquired Persona Revenue growth by segment 50 45 40 35 30 25 20 15 10 5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 BFS Corp BS EPB Prop Other 27
Slide 27: Leveraging our Opportunity
Leveraging our Opportunity 28
Slide 28: Leveraging our Opportunity: IPO strategy in action
Leveraging our Opportunity IPO strategy in action – differentiated, diversified and incentivised Improving operational efficiency – our pre-Covid strategy Property – Persona Associates – Guildford t-three – London Gateley Tweed – Belfast People – BD/Marketing Accounts Facilities Systems – Accounts C
Slide 29: Improving operational efficiency – our post-Covid strategy
Leveraging our Opportunity Improving operational efficiency – our post-Covid strategy Measured cost control as restrictions relaxed Flexible working for our people reduces pressure on existing sq. footage increases revenue per sq. ft rent our IPO vision of a modern, dynamic workplace/career Flexing
Slide 30: Outlook
Outlook 31
Slide 31: Outlook
Outlook FY21 better than expected start to FY21 capacity to continue profitable and cash positive trading current uncertainty precludes sensible guidance on year-end outcome Our Vision an inclusive growth mission for our people further diversification via acquisitions expanded Platforms offering wit
Slide 32: Questions?
Questions? 33
Slide 33: Appendices
Appendices 34
Slide 34: Strong cash generation and low net debt
Strong cash generation and low net debt Summary cash flow £m FY 20 FY 19 Cashflow and working capital overview PAT 11.7 13.0 Continued strong cash generation and Depreciation, amortisation, impairments 6.8 2.5 FCF Share based payment charges 0.8 0.7 Change in working capital (7.8) (3.8) Net operatin
Slide 35: Our companies
Gateley /MEGAL Providing comprehensive legal and business advice. Gateley / ween Specialist, multi-jurisdictional advice on reputation, media and privacy. INTERNATIONAL INVESTMENT SERVICES Supporting businesses to realise their international growth ambitions. Gateley /caritus Specialising in capital
Slide 36: Our offices
Our offices With offices in 11 UK locations, and another in Dubai, we have the regional network to provide our clients with the advice they need on their doorstep. 37
Slide 37: gateleyplc.com
gateleyplc.com 38