Australia’s first publicly listed legal firm Slater & Gordon has tipped further losses to bring its deficit in the 2016 financial year to more than $1 billion.
The Victoria-based injury compensation law firm will post a comparatively good $60 mil loss in the six months to July in addition to the nearly $950 mil first half loss.
Slaters currently has the support of its banks and is counting on the second-half improvement to form the basis of consolidation or the 2017 year and beyond.
The company’s problems stem from the botched acquisition of U.K. retail injury claims manager Quindell for which it paid $1.3 billion, double what the market now believes was reasonable.
“In the second half we have taken significant steps towards turning around the performance of the UK business,” said managing director Andrew Grech.
The company has also been hit by the sterling exchange rate depreciation following the Brexit vote.
Slater + Gordon has 7 offices in Queensland.