Watchstone Share Discussion Threads

[dalesiders] 23/2/2017 09:16

Glad I didn't pay A$8

[rogthepodge] 23/2/2017 01:01

you must be wetting yourself with glee Tom

[ionlypostafterbbms] 23/2/2017 00:33

SGH hits another all time low in Oz.

16cents, down for $8.

[stud-muffin] 20/2/2017 19:54

TW was totally correct about the house of cards that was QPP.

Without S&G QPP would have gone to the wall at some point last year when the kitty ran dry, I still find it amazing that WTG holders do not recognise that without our Ozzie pals it would have been curtains and for a lot of peeps that would have been ruin.

[lydnem] 18/2/2017 08:42

numb nuts

It is amazing you STILL cant accept that TW was totally correct on QPP and SNG

Your losses prove it!

[rogthepodge] 17/2/2017 23:44

yeah right, of course you do

[dalesiders] 17/2/2017 17:35

I'm Spartacus actually, Numbnuts. Frigana is where I keep my Sauvignon Blanc.

[rogthepodge] 17/2/2017 00:56

P.S. how are you paying for the major 'hovel' building job?

surely a bit too ambitious for a modest public sector employee?

you sure it is the 'royal we'? LOLOL

man up, and disclose your positions

[rogthepodge] 17/2/2017 00:52

no penury here I am afraid daley (sorry!)

now get back to that frigana

LOL

[dalesiders] 17/2/2017 00:30

I'm afraid that Tom was using the royal "we", when in fact referring to the great global shorting conspiracy of which so many of us are members. And of course it goes without saying that we are the people who have reduced Numbnuts to abject penury.

[spbcscw] 16/2/2017 12:33

What a shambles.

Settle S&G. Sell PT healthcare, Ingenie and Hubio (for what it's worth)and stop hemorrhaging money.

There have been no big client wins in years and a metric of "success" is deemed to be losing less cash than we used to!

[dalesiders] 16/2/2017 09:14

Quenron v Aviva in court. Nicky Numbnuts can act as an expert witness.

He's the only one who understood the business "model"

[jonc] 16/2/2017 08:19

One can only weep with joy at the prospect of a bunch of ambulance chasing lawyers getting their P45s.

[owenski] 16/2/2017 07:58

Wonder if Peel Hunt still feel confident about that buy note lol, never thought this business ammounted to much except a dwindling pool of cash to be sucked up on the BoD wage bill, if they lose this case that pool of cash will have another dent made in it.

[ionlypostafterbbms] 16/2/2017 01:30

Shareholder wipeout imminent. The share price is 20 cents now, not the 27 quoted in the last sentence when this was written a couple of hours ago.



Slater and Gordon pushes restructure as Australian performance weakens

Slater and Gordon has pitched a life-saving debt for equity swap to its bankers as it revealed its trading performance was weaker than expected.

BusinessDay understands the initial deal put forward by Arnold Bloch Leibler and investment bank Moelis has not yet won over the group's bankers, but talks are continuing.

Sources said the deal had been structured in a way to snuff out the impact of a $100 million-plus class action by restricting the assets that can been called upon in a settlement or court-awarded damages claims to the company's insurance.

Slater and Gordon confirmed on Thursday morning weeks long speculation that it was working with its lenders on a recapitalisation plan.

The plan is expected to take the shape of a debt for equity swap that would see its lenders take up shares in the entity, which has been financially struggling for more than a year.

Slater and Gordon also said revenue from its Australian business, previously the highlight of its weakening results, was lower than expected for the first half of 2017.

"Slater and Gordon's Australian business has more recently started to show signs of being impacted by negative sentiment about the business and increase competition in key segments," the company said in a statement to the Australian Securities Exchange.

It also said earnings from its UK business were lower than expected.

Still, the company said its first-half normalised earnings and cash from operations from its UK arm would be an improvement on the prior corresponding half.

"The company is projecting stronger billed revenue results in the second half of 2017 as it continues its UK performance transformation program," the company said.

Slater and Gordon has been in financial trouble since midway through 2015, when accounting issues were discovered shortly after its $1 billion purchase of the professional services arm Quindell.

Since the disastrous acquisition, Slater and Gordon's share price has fallen from more than $8 to 27¢.

More to come

[ionlypostafterbbms] 16/2/2017 01:23

Doomed. The Quindell contagion & the curse of Rob Terry is taking another victim, wiping out AUS$ billions & destroying more lives.



Today’s Update

The problem is that Slater & Gordon today reported that its UK businesses are continuing to perform poorly with more write downs likely ahead, while the “Australian operations have started to show signs of being affected by negative sentiment about the business and increased competition in key segments”.

As a result of the problems the group forecast that it would post a net operating cash outflow for the period of up to negative $20.9 million, which means its lenders are likely to be running out of patience.

Given that Slater & Gordon now either faces its creditors forcing into administration or the prospect of a recapitalisation deal that is likely to be highly dilutory to existing shareholders it seems the share price will remain under pressure indefinitely.

[ionlypostafterbbms] 16/2/2017 01:16

SGH going down the toilet right now.

Glug, glug, glug.

Bloody fools, if they had just read Shareprophets on Quindell & Rob Terry they would have known this QPP was a fraud & not had anything to do with it!
.......................................

ASX Announcement. 16 February 2017

Slater and Gordon Limited.


Market update: Lender discussions and trading performance

Further to the update provided on 28 December 2016, Slater and Gordon Limited (ASX:SGH) is continuing to work with its lenders to agree on a recapitalisation plan for the Group. The negotiations are ongoing and the Company expects that negotiations will be concluded in coming months. It is clear that based on performance expectations and liquidity the continued support of the Company’s lenders is fundamental, as current levels of bank debt exceed total enterprise value.

The Company provides the following update on recent trading performance ahead of the release of its half year financial results on 27 February 2017.
Half year results are not finalised and remain subject to Board approval and auditor’s review.

UK Operations

Slater and Gordon’s UK business has shown signs of improvement, but recovery is slower than expected.
Whilst progress is being made in terms of realigning the cost base of the business to its future needs, billed revenue performance in segments of the business is lower than expected. Nevertheless, the Company expects its H1 FY17 UK normalised EBITDAW and cash from operations to be an improvement on the prior corresponding period. Revenue performance reflects slower than anticipated progress with various productivity improvement initiatives and (in some practice groups) slower than expected case settlement profiles. The Company is projecting stronger billed revenue results in H2 FY17 as it continues its UK performance transformation programme.

There are impairment indicators in relation to the UK domiciled goodwill assets and the Company will test its UK goodwill values for impairment as part of the half year results process. Recent trading experience and the slower than expected recovery in the UK have caused the Company to adjust expected trading results from the UK downwards, and this is likely to have an adverse impact on assessed asset values. As at 30 June 2016, there was $327.2m of goodwill on the balance sheet relating to the UK business.

Australian Operations

Slater and Gordon’s Australian business has more recently started to show signs of being impacted by negative sentiment about the business and increased competition in key segments.

H1 FY17 fee and services revenue in Australia is expected to be lower than the prior comparative period with declines across both the Personal Injury Law (PIL) and General Law (GL) businesses. This is due to a numbers of factors, including lower workers compensation settlement rates and a relatively lower number of project litigation matters being concluded in H1. Both the PIL and GL businesses are projecting stronger fee results in H2 FY17.

Slater and Gordon expects that the first half revenue declines will be partly offset by a reduction in operating expenditure.

A performance improvement programme is underway in Australia to address areas of underperformance. The Company will seek to ensure that the Australian business remains strong and continues to improve and grow over time.

Cash flow

Group cash flow performance has continued to improve but remains a challenge. Net operating cash flow is expected to further improve from H2 FY16 (-$20.9m) but will remain a net cash outflow.
ENDS

[rogthepodge] 16/2/2017 00:36

'IOnlyPost' is a bit slow off the mark re: Slater and Gordon's
dampening of expectations hmmmmmmmmm

maybe he is abroad?