Key facts
- Gateley CEO Rod Waldie will exit the business on August 1 due to personal, health-related reasons.
- The company plans to cut approximately 40 staff positions.
- Gateley's net debt increased by £18.7m to £25.3m in the financial year ending April 30, 2026.
- Overall expenses rose by £6.3m to £40.6m.
- The dividend payout was reduced by 44% to 5.3p per share.
Gateley, the first UK law firm to list on the London Stock Exchange's Alternative Investment Market (AIM), is facing significant challenges, including the impending departure of its chief executive and planned job cuts. CEO Rod Waldie will exit on August 1 for personal, health-related reasons. The firm also confirmed it is initiating a redundancy consultation process that could result in the loss of approximately 40 support staff positions, aiming to reduce its swelling cost base.
These developments come amid concerns over a potential slowdown in client spending and a challenging economic outlook. Gateley's share price has more than halved in the past year. While the firm reported an 8.2% increase in revenue and over 20% growth in profit before tax to £7.7m for the financial year ending April 30, 2026, its net debt surged by £18.7m to £25.3m. Overall expenses also climbed by £6.3m to £40.6m.
In response to the financial pressures, Gateley's board has rebased its dividend policy, cutting the total payout by 44% to 5.3p per share. The company is also focusing on diversifying its revenue streams and expanding its presence in the Middle East. Historically, several UK law firms that have listed on the stock exchange have struggled, with some, like Ince Group and RBG Holdings, collapsing into administration or liquidation, while others, such as DWF, have been taken private.