The Newswire

Your daily serving of financial goodness

Slater and Gordon Provides Guidance on UK Regulatory Changes; Board Remains Confident

Slater and Gordon Provides Guidance on UK Regulatory Changes; Board Remains Confident
Nov 30, 2015 By Simon Herrmann Tags: SGH

Embattled law firm Slater and Gordon (ASX:SGH) provided an update on the potential impact of UK regulatory changes and reassured investors that impacts won’t be as severe as the general public fears.

In announcement released to the ASX this morning Slater and Gordon reaffirmed its FY16 guidance of A$1,150m of revenue and $A205m EBITDA and also stated that it remains in compliance with its debt obligations.

Given the lack of detail available, the company admits that impacts on performance in 2017 and beyond is hard to predict, however the earliest date of implementation for the proposed changes will be April 2017.

Managing Director, Andrew Grech said: “These proposals will not have any impacts on the Slater and Gordon Lawyers business in Australia. Nor are they expects to have a material impacts on the SGL business in the UK, given practice diversity and the profile of clients for whom SGL acts.”

Andrew Greech also points out that the proposals in the current form will not eliminate the right to claim compensation or remove the right to obtain advice with the claim process.

Furthermore he stated: "SGH is well positioned to continue to be a leading provider of services to people who require legal and other assistance as a result of RTAs in the UK in the 2017 financial year and beyond.”

Management will not provide any guidance post FY16 as it would be premature in nature. Over the past few decades Slater and Gordon has faced various regulatory changes and managed to adjust its business model. The company has successfully responded to various challenges and is expected to find a way to overcome any headwinds in the UK.

SGH opened significantly higher on Monday as investors had time to consider all implications over the weekend. Volatility is expected to remain high in the short-term.

Wise-owl will provide its subscribers with any updates in due course.

Share this article

Simon Herrmann Author: Simon Herrmann Nov 30, 2015

Simon is a financial analyst at independent research firm Wise-owl who wants to change the world by disrupting the cliché approach to investment decision making with convergent thinking. Wise-owl’s goal is plain and simple: Find the best opportunities for our members by following a proven methodology and to create long-term value through high-quality advice, innovation, technology and education. We combine industry experience and the agile mentality of a start-up. Wise-owl is the future of stock market investing.

Growing Cases of Cancer Fuel Demand for Diagnostic Technology: Sienna Cancer IPO

The Australian government estimates that over 130,000 new cancer cases will be diagnosed in 2017 and the risk of individuals dying from cancer by their 85th birthday will be one in five.

Author: Simon Herrmann Jun 23, 2017

Errors

Sign Up for Free Trial
Subscribe
Recent Tweets
Recent News