Gateley set to raise £30m from AIM listing, as Slater & Gordon’s acquisition of Quindell completes

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By Legal Futures

29 May 2015

Stock exchange: Gateley to start trading on 8 June

Stock exchange: Gateley to start trading on 8 June

National law firm Gateley is looking to raise £30m from its imminent listing on AIM, documents filed at the London Stock Exchange today have revealed.

The alternative business structure is due to list on 8 June with a market capitalisation of £100m, putting 30% of the business in the hands of investors.

Some 105m shares will be issued at a price of 95p each.

The filing showed that the seven main internal shareholders currently hold nearly 28% of the firm between them, which will drop to 20% after the float.

They are senior partner Michael Ward (who will be chief executive of the plc), construction litigation partner Peter Davies (who will be chief operating officer), corporate restructuring partner Brendan McGeever, Paul Hayward – head of the London office and the private equity team – housing partner Callum Nuttall, head of corporate restructuring Mark Wilson, and head of banking and finance Andrew Madden.

The largest two new institutional investors will be Schroder Investment Management, which will have an 8% stake, and Miton Asset Management, which will have 5.6%.

The plc’s non-executive chairman will be Nigel Payne, a former CEO of Sportingbet plc and current non-executive director of Gama Aviation Plc. Sportingbet was one of the world’s largest internet gambling companies and made a number of acquisitions whilst listed on the London Stock Exchange (both the FTSE and AIM).

Joanna Lake, an accountant turned banker, and former Eversheds partner Michael Seabrook will be The non-executive directors.

Meanwhile, Lord Howard, a former leader of the Conservative Party, has joined the board of Quindell as a senior non-executive director following the announcement that the £637m sale of its professional services division to Slater & Gordon has completed.

In a statement to the Stock Exchange, Quindell also revealed that the review of its accounting policies, by PwC, launched in December last year, was over.

Quindell previously reported that PwC had identified that certain of its former accounting policies were “largely acceptable but were at the aggressive end” of acceptable practice.

“PwC also identified that some policies were not appropriate, principally the noise induced hearing loss cases revenue and related balances that became significant during 2014.

“Having undertaken its own review and considered the findings of PwC, the company has concluded that it will adopt a more conservative approach to accounting for revenue and profit in respect of the now disposed of professional services division.”

Quindell also promised to provide a “definitive view” of historical results based on a more conservative approach and said the changes would result in a “reduction of revenue and profit”. Quindell’s results for the year ended 31 December 2014 are expected to be published by the end of next month.

The company has said that most of the proceeds of sale of the PSD to Slater & Gordon will be used in a “substantial return” of capital to shareholders.

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