(Alliance News) - Gateley (Holdings) PLC on Wednesday reported a jump in revenue, boosted by recent acquisitions, but a drop in profit in "challenging" market conditions.

The professional services group said in the year ended April 30, revenue rose 19% to GBP162.7 million from GBP137.2 million the year before, while pretax profit fell to GBP16.2 million from GBP26.8 million. Basic earnings per share nearly halved to 9.77 pence from 19.35p.

The company said it had delivered a strong financial performance through its diversified and resilient business model, benefitting from a full year's contribution from the prior year's acquisitions, Adamson Jones Ltd and Gateley Smithers Purslow Ltd.

The group achieved organic revenue growth of 6.2%, despite macro-economic headwinds, which created challenging market conditions in the second half of the year, it said.

The balance sheet remains strong and the firm has significant headroom in its banking facilities to enable investment in organic and acquisitive growth opportunities, it added.

Looking ahead, Gateley said the new financial year has started in line with the board's expectations, with a good pipeline of work and an encouraging pipeline of M&A opportunities.

The dividend was raised 12% to 9.5 pence per share from 8.5p the year before.

Shares in Gateley rose 1.0% to 154 pence in London on Wednesday.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.