find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Legal Counsel
Category: Corporate and Commercial Law | Location: North Sydney NSW 2060
· 18 month fixed term contract · 3-5 years PQE with TMT exposure
View details
Listed firm halves earnings guidance

Listed firm halves earnings guidance

Stock market

ASX-listed firm Shine Lawyers has dramatically downgraded its 2015-16 earnings guidance after ending its extended trading halt.

The revised EBITDA guidance announced by Shine Lawyers is $24-$28 million, down from the $52-$56 million predicted in August 2015.

The adjustment comes after the firm reviewed its recovery rates and provision modelling with an actuarial consultant.

As a result of the review, the firm has increased its provisioning for work in progress (WIP) by a one-off sum of $17.5 million in 2015-16.

This recalculation of WIP was made on the basis that all current cases may not succeed, so provisioning must be relative to recovery rates, the firm said in a statement on the ASX.

Shine also conducted a review of its current business performance, which wiped a further $10.5 million off the initial earnings guidance.

Performance in the first half of 2015-16 was below budget due to “lower income, driven by poor fee-earner to file ratios and under performance by some fee-earners”, according to the statement.

In response, the firm committed to bringing in tighter performance management and recruitment policies.

The firm also pointed to “greater than expected” write-offs due to factors that included regulatory reform and continuing market competition, especially in Queensland.

Full results for the first half of 2015-16 are due to be released on 23 February.

The firm has now resumed trading on the ASX after a seven-day suspension from the market announced in anticipation of the earnings guidance review.

Update: Share prices dropped by 73.25 per cent on Friday as trading resumed after the announcement, opening at $2 and closing at $0.53.


Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Listed firm halves earnings guidance
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
LCA president Fiona McLeod SC
Aug 17 2017
Where social fault lines meet the justice gap in Aus
After just returning from a tour of the Northern Territory, LCA president Fiona McLeod SC speaks wit...
Marriage equality flag
Aug 17 2017
ALHR backs High Court challenge to marriage equality postal vote
Australian Lawyers for Human Rights (ALHR) has voiced its support for a constitutional challenge to ...
Give advice
Aug 17 2017
A-G issues advice on judiciary’s public presence
Commonwealth Attorney-General George Brandis QC has offered his advice on the public presence of jud...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...