A rival of Slater and Gordon has announced a trading halt this morning after indicating its earnings guidance was likely to be reduced.
Share trading of public liability and class action firm Shine Lawyers was suspended this morning.
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After the market closed yesterday, the firm announced its earnings for the 2016 financial year were under review and would be lower than anticipated.
“The company expects a material reduction in its previous FY2016 EBITDA guidance pending finalisation of this review,” a statement by Shine read.
“The company will update the market as soon as further information becomes available.”
The review will focus on work in progress (WIP) recovery rates and provisioning, according to the statement.
In August, the firm told shareholders its EBITDA would be between $52 million and $56 million. This represented a substantial increase on the EBITDA for FY15, which came to $44 million.
For FY15, net WIP accounted for $190.7 million of the firm’s assets, an increase of 39.3 per cent on the previous financial year.
The trading halt will last until Thursday, or the release of the updated market guidance.
The news comes after rival listed firm Slater and Gordon shares fell by almost 90 per cent from January 2015 to 2016.