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General Information

Slater & Gordon Limited
SGH
http://www.slatergordon.com.au
Specilised Consumer Services
2,139
351

Current Price Data+

Current Price Open High Low Last Close Volume Price Movement
$6.12 $6.07 $6.15 $6.07 $6.10 1385200 $0.02 ( 0.33% )
  • +Security prices are delayed by least 20 minutes and are indicative only.

Current Broker Consensus Recommendation

Buy
25/05/2015
3

Company Overview

Business Description
Slater & Gordon Limited (SGH) is an Australian law firm specializing in insurance claims, commercial, family and asbestor-related law. SGH also provides advice to organizations involved in commercial or business disputes. SGH operates core business with 70 offices throughout Australia and across 12 locations in the UK. SGH now includes five brands in total: Slater & Gordon (national), Trilby Misso Lawyers and Conveyancing Works (Queensland), Russell Jones & Walker and Claims Direct (UK).
Strategy Analysis
SGH's strategy is to continue to lead the consolidation of the national personal injuries litigation market, to extend the geographical reach of the business, to expand the range of services we offer clients and to continue to build the Slater & Gordon brand. SGH is pursuing an ongoing acquisition program and the acceleration of the organic growth of the business through advertising and other national brand building initiatives. This will lead to expansion into new and emerging geographical markets. The Company will also continue to pursue opportunities to increase its presence in practice areas outside the personal injuries sector. SGH is also seeking to benefit from system and process efficiencies to support the growing business. Slater & Gordon reported NPAT up 61.29% to $19.08m for the half-year ended 31 December 2012. Revenue from ordinary activities were $145.69m, up 46.47% from last year. Diluted EPS was 11 cents compared to 7.6 cents last year. Net operating cash flow was $17.49m compared to $4.09m last year. The interim dividend declared was 2.75 cents, compared with 2.5 cents last year.

Financial Summary

Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016 F 194.8 56.2 51.2% 10.9 11.5 1.9% 50.0%
2015 F 76.9 37.2 19.3% 16.4 9.6 1.6% 50.0%
2014 A 63.8 31.1 32.6% 12.6 8.0 2.0% 100.0%

Peer Comparison

Company Mkt Cap EPS Growth (%) P/E (%) Dividend Yield (%)
2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
iSelect (ISU) $409M -0.6363 2.3917 0.0934 65.2083 19.2260 17.5843 0.00% 0.00% 1.73%
InvoCare (IVC) $1,465M 0.1405 -0.0667 0.0814 26.1237 27.9916 25.8849 2.74% 3.04% 3.29%
Slater & Gordon (SGH) $2,146M 0.3203 0.2485 0.5543 20.9446 16.7763 10.7937 1.23% 1.44% 1.88%
Shine Corporate (SHJ) $481M 0.1797 0.2082 0.1504 19.4969 16.1365 14.0271 1.25% 1.49% 1.82%

Financial Summary

Earnings P/E Ratio P/B Ratio P/E Growth
Company 0.39 17.00 3.14 0.43
Market 1.03 17.10 1.34 1.57
Sector 1.37 18.90 2.57 1.07

Directors

Name Position Start Date
Mr Kenneth John Fowlie Executive Director 01/07/2003
Mr Andrew Alexander Grech Managing Director 27/06/2001
Ms Rhonda O'Donnell Non-Executive Director 07/03/2013
Mr Ian Court Non-Executive Director 22/03/2007
Ms Erica Lane Non-Executive Director 22/12/2008
Mr John Skippen Non-Executive Director, Non-Executive Chairman 26/05/2010

Management

Name Position
Cath Evans Chief Executive Officer, United Kingdom
Wayne Brown Chief Financial Officer,Company Secretary
Kirsten Morrison Company Secretary
Neil Kinsella Head of United Kingdom

Substantial Shareholders

Holding Name
15,656,052 (7.66%) National Australia Bank Limited

Calendar of Events

Date Event
09 February 2016 Report (Interim)
18 September 2015 Report (Annual)
11 August 2015 Report (Prelim)
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