As usual, Gateley has issued its FY26 trading update (April year-end). Revenue in FY26 is expected to be c.£193m, up around 7%, which we note would be 2% above our previous forecast of £189.6m, “reflecting broader improvements in utilisation and the diversified nature of the business across all of our Platforms”. We have increased our revenue estimates by 2% in FY26, FY27 and FY28. The statement adds that it expects “underlying operating profit of between £21m - £22m, in-line with consensus expectations”. We had forecast £22.5m. The margin is expected to be c.11.1% so lower than the 11.7% of FY25, which “reflects changing business mix and higher than anticipated transactional deferment as we progressed through Q4”. We think that the mix will have been impacted by lower transactional work (which is typically higher margin) and higher contentious work (where Gateley often incurs cost before the profit has materialised) and that FY27 could benefit from the timing of delayed transactional work and contentious work being settled. We have decreased our underlying operating profit estimates by 2% in FY26, by 5% in FY27 and by 2% in FY28.