Listed legal firm, Slater & Gordon is bumbling along, slimming itself and continuing to cut costs as it readjusts to life after its near death experience in the UK in the past couple of years.
The company yesterday said it narrowed its full-year net loss on continuing operations to $31.9 million, from $74.5 million last year, and revealed that its chief financial officer was leaving and returning to Sydney.
Total revenue and income from continuing operations fell to $159.3 million, from $181.5 million previously, reflecting the reductions in the size of the business.
The company said yesterday it now had a “significantly improved net asset position of $63.3m (2017: net liabilities of $248.8m) following restatement of the senior secured debt facilities and separation from the UK business.”
Slater and Gordon said in February that it would be selling or winding back some of its existing businesses to achieve a narrower focus.
It nominated its succession, criminal and family law practices for run off, while retaining a smaller commercial practice. It is now focusing on its personal injury business and class action and industrial and union practice.
The shares rose 3.5% to $3.50, but only on a very small turnover. Existing shareholders were all but wiped out by the rescue deal that saw hedge funds, including Anchorage Capital, agree to convert the debt they held in the company to equity as well as the 100 for one share consolidation.
Chairman James MacKenzie said the results reflected the significant work being undertaken by the company but more needed to be done.
“The last 12 months have been a period of significant change for Slater & Gordon,” he said in a statement. “We have implemented a strong program of initiatives we believe will set us up for long-term sustainability so we can continue to unlock access to justice for the thousands of Australians who need our help.
No dividend will be paid.
The company said CFO Belinda Nucifora leaves today (Friday) and will return to Sydney and pursue other opportunities.
