Gateley's financial struggles are taking centre stage, with the law firm announcing the departure of its chief executive, Rod Waldie, amidst a significant overhaul of its operations. The company's share price has plummeted by more than 50% over the past year, currently trading at around 60p, down from 124p in August 2023. This decline coincides with a decision to reduce headcount by approximately 40 support staff as part of efforts to address rising costs and debt.
The company's financial results for the year ending 30 April 2026 paint a mixed picture: revenue rose by 8.2% to £133 million, while profit before tax increased by over 20% to £7.7 million. However, net debt surged by £18.7 million over the financial year, reaching £25.3 million – a substantial increase from £6.6 million in the prior year. Overall expenses also jumped by £6.3 million to £40.6 million.
Gateley's board has responded to these pressures by rebasing its dividend policy, slashing the total payout by 44% to 5.3p per share – a significant reduction from 9.5p in the recent financial year. Russ Mould, investment director at AJ Bell, notes that "the mixed economic outlook in the UK and ongoing conflict in the Middle East present near-term challenges for professional services specialist Gateley." The firm's decision to reduce headcount follows a review of its cost base and operating structure.
As part of this process, 40 support staff face redundancy, with a formal consultation underway. According to a company spokesperson, affected staff will be treated "fairly, respectfully and with care" – a commitment that reflects the company's efforts to manage change while prioritising employee welfare. This move is consistent with an earlier reduction in fee-earner headcount by four per cent to 983 over the year.
Gateley's struggles echo broader challenges facing legal businesses listed on the London Stock Exchange. While the firm was a pioneer in 2015, its fortunes mirror those of other law firms navigating mixed results and heightened risks. High-profile collapses like Ince Group's in 2023 have highlighted sector vulnerabilities, prompting caution among other firms considering public market listings – including Mishcon de Reya and Irwin Mitchell.