Shares in Gateley has fallen by over 12%, despite the professional services group announcing that it expects its full year revenue to land ahead of expectations.

The firm stated that in the year to 30 April, its revenue is set to increase by 7% year-on-year to around £193m, while its underlying operating profit is set to reach between £21m and £22m, which is in line with consensus expectations.

However, the firm said that following a strong start to its 2026 financial year, the group experienced a “slowing of certain transaction service activity” through Q2, as uncertainty around the Autumn Budget caused some client activity to be paused.

It also added that recent developments in the Middle East, combined with a worsened medium term interest rate outlook, have impacted customer sentiment.

Despite this, the group has taken cost actions, which were announced last year, and have resulted in fee earner headcount being marginally down against the start of the year and average team utilisation improving.

Gateley stated that it remains focused on margin improvements including from its system investments, such as the AI platform, Jylo, and returns from selective hiring in key growth areas, whilst also managing its cost base.

CEO at Gateley, Rod Waldie, concluded: "I am pleased to be reporting our full year results update. Whilst our Q4 experienced longer than anticipated transactional cycles as a result of the macro backdrop, we enter FY27 with good activity levels across transactional and contentious workstreams, and we continue to see attractive mandated and pipeline opportunities across the group's platforms.

"With the diversified nature of the group's business, strong expertise across excellent teams and numerous growth opportunities, we are well positioned to deliver future, profitable growth."

Gateley will announce its full year results in mid-July.

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