Slater and Gordon slips to first half loss

Law firm Slater and Gordon says it’s stabilising after a period of turmoil, but a $10.3m loss shows there’s more work to do.

Slater and Gordon has lost billions, flirted with bankruptcy and became embroiled in shareholder class actions over its UK woes. Pic: AAP

Slater and Gordon has slipped to a $10.3 million first-half loss after a fall in income from the law firm’s personal injury business.

The firm had posted a $141.3 million net profit in the first half of 2018, although that figure was inflated by the $211.2 million gain from the sale of its UK business.

Its loss from continuing operations for the six months to December 31 narrowed to $8.2 million, from $21.4 million in the prior corresponding period, as the company trimmed costs amid the overhaul necessitated by a disastrous UK expansion.

Total revenue and other income from continuing operations slipped 12 per cent to $75.1 million, with improved class action revenues partially offsetting the reduced income from personal injury.

Chair James MacKenzie said the results showed the work undertaken to stabilise and transform the company, which lost billions, flirted with bankruptcy and became embroiled in shareholder class actions over its UK woes.

“The business now has a simplified operating model and a clearly defined service offering, and we are now in a position where we are focused on the future and growing our core services,” Mr MacKenzie said.

“Undoubtedly these results show that there is still work to do to continue to improve but they also show that we are heading in the right direction.”

Slater and Gordon’s market capitalisation disintegrated as its share price collapsed from $8.07 in August 2015 to 1.81 cents in February 2018.

The stock was valued at 2.53 cents before the market opened today.

AAP