Slater and Gordon moves to reassure investors
SHARES in Slater & Gordon, the Australian legal firm, have staged something of a recovery after heavy falls last week.
The stock rose aftet the firm, which has hundreds of employees in Manchester and Liverpool, sought to reassure investors following last week’s falls. A number of former partners in Manchester firm Pannone took shares in Slater and Gordon as part of the terms of the sale in late 2013.
It reaffirming its financial guidance for fiscal 2016 and said it remained compliant with its debt obligations, pushing the share price up more than 30% to 92.5 cents. The stock plunged last week after Chancellor George Osborne said the government is looking to restrict compensation to people who sustain minor whiplash injuries in car accidents.
The sell-off resulted in Slater and Gordon shares losing 51% last Thursday and another 27% on Friday.
But the stock staged a partial recovery on Monday after group managing director Andrew Grech said the UK proposals wouldn’t have any impact on the SGL business in Australia, nor have a material effect on the SGL business in the UK.
“It is also important to note that the proposals (even if enacted in their current form) do not eliminate the right to claim compensation, or the opportunity for people injured in road traffic accidents to obtain advice and assistance with the claims process,” Mr Grech said in a statement.
The UK government will not start a consultation process until January 2016, and the earliest implementation date will likely be April 2017.
“SGS is well positioned to continue to be a leading provider of services to people who require legal and other assistance as a result of road traffic accidents in the UK in the 2017 financial year and beyond,” Mr Grech said.
