finnCap Research Company Notes - 13 December 2019
Dec 13, 2019 / News
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Sector: Support Services
Gateley (GTLY) : Corp
Strengthening complementary services to legal
Key data
Share price (p) 173.5
Target price (p) 210.0
Market cap (£m) 191.2
Enterprise value (£m) 194.5
Gateley has acquired T-three Group for £3.4m (of which £0.9m deferred, all settled 50% in cash and 50% shares). T-three offers services and products that enable businesses to develop their senior people and effect cultural change. It significantly broadens Gateley’s Human Capital services and has been acquired at 4.9x historic EBITDA (3.6x on net initial). The Board expects the acquisition to be immediately earnings enhancing, putting positive pressure on our forecasts, which we will reassess with the next set of results. We reiterate our view that Gateley’s proven model retains good growth prospects, supported by the addition of high quality staff and acquisitions, strengthening the range of services offered.
Guy Hewett
020 7220 0549
ghewett@finncap.com
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