SerpApi.Org
Gateley, the City’s first listed law firm, is set to lose its chief executive and axe dozens of jobs as it grapples with a swelling cost base and fears of a slowdown in client spending.
The group, which is listed on the London Stock Exchange’s Alternative Investment Market (AIM), informed shareholders on Tuesday that chief executive Rod Waldie will exit the business on 1 August due to “personal, health-related reasons”. The company also confirmed it would cut some 40 staff in a bid to bring down its cost base.
Waldie’s exit adds to a turbulent year for the listed legal firm in which its share price has cratered on concerns over spending and threats to the traditional business model of the professional services sector.
Gateley’s shares are currently trading around 60p, down more than half from 124p this time last year.
The group’s shares ticked up following its latest financial results on Tuesday morning, in which revenue rose by 8.2 per cent and profit before tax grew by over 20 per cent to £7.7m.
However, the AIM-listed group’s net debt surged by £18.7m over the year, reaching £25.3m for the year ending 30 April 2026, up from its £6.6m debt the previous financial year. The company’s overall expenses also jumped by £6.3m to £40.6m over the financial year.
Gateley’s board also rebased its dividend policy, cutting the total payout by 44 per cent to 5.3p per share, down from 9.5p in the recent financial year.
“The mixed economic outlook in the UK and the ongoing conflict in the Middle East are both near-term challenges for professional services specialist Gateley,” Russ Mould, investment director at AJ Bell, said.
Gateley, which was listed in 2015, was the first UK law firm to float on the London Stock Exchange.
Since then, the business has evolved from a purely legal practice into a broader professional services firm, focusing on diversifying its revenue streams across four key areas, including property and people.
One core part of this is boosting its presence in the Middle East, including in corporate, disputes, and resolution work. Gateley said the regions “continue to present margin-enhancing profitable growth opportunities.”
Staff set to be axed as share price tumbles
Gateley is now looking to slash its headcount as part of a push to manage costs. The group told shareholders this week it had launched a redundancy consultation process that is set to remove 40 support staff from the business.
A Gateley spokesperson told City AM the legal business has “entered a formal consultation process regarding proposed changes” but “no final decisions have been made.”
“These proposals follow a detailed review of our cost base, operating structure and ways of working,” the spokesperson said.
“Given this is an ongoing, legally defined consultation process, it would not be appropriate to comment further at this stage. Our focus is on treating our people fairly, respectfully and with care, while ensuring appropriate support is in place for those who may be affected,” they added.
Gately has already cut its total fee-earner headcount by four per cent to 983 over the year.
Some legal businesses have struggled on the market
Legal businesses have historically struggled on the London Stock Exchange.
Between 2015 and 2020, five law firms in addition to Gateley entered the market: DWF, Ince Group, Keystone, RBG Holdings, and Knights.
Prior to the pandemic, firms including Mishcon de Reya and Irwin Mitchell were also preparing to list in London before shelving their plans.
However, the pandemic and two high-profile collapses put the brakes on the trend.
In 2023, the Ince Group, formerly known as Gordon Dadds, a historic shipping firm in the City, collapsed into administration under a mountain of debt and a catastrophic cyberattack from which it never recovered.
The group was trading at around 80p per share in early 2021, but had plummeted to around the 5p mark in July 2022.
Ince was suspended from trading on the London Stock Exchange after missing a final deadline to publish its accounts before eventually falling into administration in April 2023.
Last year, RBG Holdings, formerly known as Rosenblatt Group, collapsed and entered liquidation after a brutal and public boardroom dispute between the board and its founder.
City lawyer Ian Rosenblatt took his eponymous law firm public in 2018 at a market value of £43m. However, following severe financial instability and internal conflict between the board and Rosenblatt, which resulted in his ousting, its shares plummeted and were suspended in January 2025.
On top of this, DWF was taken private by the private equity firm Inflexion in October 2023 through a £342m deal. As a result, only Gateley, Keystone, and Knights are left on the London Stock Exchange.
