Gateley (Holdings) (AIM:GTLY) shares plunged 12.8%, to 57.88p, on Thursday, after a FY26 trading update that warned transactional timelines had paused and extended.
The shares fell from a previous close of 66.4p, trading between 55p and 68p.
Gately told investors that underlying operating profit is anticipated between £21m and £22m, in-line with consensus expectations.
Meanwhile, an 11.1% adjusted operating margin (FY25: 11.7%) reflects the changing business mix and higher-than-anticipated transactional deferment through Q4, the company said, pointing to slowed transactional services following the UK's November Budget uncertainty, as well as the later Middle East developments, and a worsening medium-term interest rate outlook.
This has meant that transactional timelines have extended beyond FY26, the company explained.
Gately said it ended the year with £25.3m of net debt (FY25: £6.6m), whilst noting the cash-weighted acquisition of Groom Wilkes & Wright and an increase in working capital.
Gately said it has taken cost actions that marginally reduced fee-earner headcount and improved average utilisation while selectively hiring in high-value areas, and added that it remains focused on margin improvement including investments in AI.
"We enter FY 27 with good activity levels across transactional and contentious workstreams, and we continue to see attractive mandated and pipeline opportunities across the Group's Platforms," said Rod Waldie, Chief Executive Officer.
The company is slated to announce full-year results in mid-July.
