Slater, Intangible asset increased by $1 billion in 2015 due to UK acquisition.
I simply avoid for three main reasons:
1. Earning concern, guide withhdrawal and negative cash flow for first half year, negative cash flow $30m - $50m was aired by media
2. Net debt was $630m in 2015, currently would be around $660m - $750m
3. Two class actions against CR $890m for acquisition PDS.
In late March, Slater & Gordon announced it would buy the PSD from Quindell for $1.3 billion – a price that suprised Quindell investors who had witnessed a share price plunge and revelations of accounting issues emerged.
Slater & Gordon conducted its own review of Quindell's accounts which it determined was "aggressive", particularly in relation to hearing loss cases.
The ASX-lised law firm restated Quindell PSD's full year earnings before interest tax and depreciation from £289 million to £70 million for acquisition valuation purposes, with £200 million of that restatement relating to the hearing loss unit.
Ann: Market Guidance, page-98
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