No Surprises Here – Slaters Steaming Ahead

We await the day that bad news actually comes out of the world’s most successful floated law firm…

The Australian newspaper reports that the firm is still on the expansion path ( we presume in the UK)
Slater and Gordon shares have lifted after the group said it expects a sharp increase in revenue next financial year with two consumer law acquisitions set to boost the group’s fiscal 2015 balance sheet.

At 1.15pm (AEST), Slater and Gordon shares were 5.27 per cent higher at $5.19, against a benchmark index lift of 1.09 per cent.

The law firm said it is in a position to make more acquisitions in the year ahead as it announced a 47 per cent rise in profit.

In the 12 months to June 30, the law firm recorded net profit attributable to members of $61.1 million, a 47.2 per cent increase on the $41.5m posted in the previous corresponding period.

Revenue for fiscal 2014 was $418.5m, a 40.4 per cent lift on the $298m posted last year.

The group will pay a 30 per cent-franked final dividend of 5c per share on October 24 to members on the register at September 17.

Combined with an interim dividend of 3c per share, the group’s total dividend for fiscal 2014 is 8c per share, an increase from the 6.6c per share paid last year.

Slater and Gordon says the proposed acquisition of Victorian personal injury law firm Nowicki Carbone and Queensland consumer law firm Schultz Toomey O’Brien should be completed by November this year and expects the purchases to contribute over $39m to the group’s revenue in fiscal 2015.

Nowicki Carbone is set to be acquired for a total cash consideration of $45m and is expected to produce pro rata revenue of $17m next financial year.

Slater and Gordon is also in the process of acquiring Schultz Toomey O’Brien for total cash consideration of $19m, which is expected to turn over $8m in fiscal 2015.