find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
Slater and Gordon announces full extent of losses

Slater and Gordon announces full extent of losses

stock market

Listed firm Slater and Gordon has released its half-year financial report, revealing a loss of almost $1 billion in the first half of FY2015-16.

Slater and Gordon ended the first half of 2015-16 with a net loss after income tax of $958.3 million, compared to a net profit after income tax $49.3 million the previous year.

The firm ended the first half of FY2015-16 with total revenue and other income of $487.5 million and gross operating cash flows used, excluding interest received, borrowing costs and income tax paid, of $62.5 million.

In a statement, Slater and Gordon said its half-year results were impacted by an $876.4 million impairment charge against the carrying value of goodwill and underperformance in its UK operations.

ASIC released a media statement following the announcement of Slater and Gordon results, announcing that it has discontinued its inquiries in relation to Slater and Gordon's financial reports for the years ended 30 June 2014 and 30 June 2015.

“ASIC today noted the decision by Slater and Gordon Limited to reduce asset values in its financial report for the half year ended 31 December 2015,” the statement read.

“ASIC also noted Slater and Gordon’s earlier decision to reclassify a portion of its work in progress and disbursement assets as non-current in its financial report for the year ended 30 June 2015.”

The firm’s share prices have slumped continuously since April 2015, which prompted the launch of a potential class action suit by rival Maurice Blackburn in December 2015.

ACA Lawyers also announced on 29 February that it has finalised a funding agreement with Justkapital Litigation Finance and London-based Woodsford Litigation Funding to investigate bringing a shareholder class action against Slater and Gordon.

Bruce Clarke, principal with ACA Lawyers, said “[Slater and Gordon’s] directors have a lot of explaining to do”.

“It is not only large institutional investors who have been burnt. Mum and dad investors and the company’s own staff took up shares in the rights issue.”

McGrathNicol was appointed to lead an investigation into the firm’s accounts in January, before Slater and Gordon announced the potential closure of two UK offices earlier this month.

Slater and Gordon was due to release its results in January but postponed to February as it was still working with its auditors and advisers to finalise its half year result.

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

Slater and Gordon announces full extent of losses
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Jetski
Oct 23 2017
How to fail well
The legal profession is due for an attitude adjustment when it comes to perceived failures, accordin...
Consultation
Oct 23 2017
Lawyers slam rushed consultation for SA repeat offenders bill
The Law Society of South Australia has expressed concern for a proposal to roll out new laws amendin...
IBA
Oct 23 2017
The pursuit of happiness in the law
A panel of legal experts have explored how to define success in the legal profession, and how lawyer...
APPOINTMENTS
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'...
opinion
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...
Help
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 & ...