Slater and Gordon’s news these days is going from bad to worse. Following a first half loss of AUD$425 million the law firm’s shares continue to plummet, dropping 25 per cent this week.
The increased loss was due to a AUD$350 million additional writedown on its disastrous UK business, which the firm has been working hard to turnaround.
SBS report that the shares, which were valued at $8.07 less than two years ago, dropped 25 per cent to 12 cents on Monday after the firm said revenue for the six months to December 31 slipped 33.8 per cent to $322.7 million amid underperformance in both UK and Australia personal injury claims.
“While we have made progress in the UK in the past 12 months, the turnaround is taking longer than we anticipated and billed revenue performance in segments of the business is lower than expected,” managing director Andrew Grech said in a statement.
“In Australia, our business leaders have had to combat almost two years of the effects of the negative publicity and sentiment.”
Slater & Gordon’s Bad Deal
The souring of matters for Slater & Gordon happened following the purchase of the former Quindell business for $1.3 billion in 2015, which led to a loss of $1.02 billion in the 2015/16 financial year and a collapse in share price from its all-time high of $8.07 in April 2015.
The misstep has – and continues to deliver – potentially catastrophic consequences to the trail blazing firm, the first in the world to list on a stock exchange that is now producing an embarrassment of bad news days.