All SGH questions - put here (financials ONLY), page-375

Yes, but not in an unchanged form. For reasons previously given, I expect that significant OPEX cuts (est $100m annually, recurring, once implemented), headcount reductions of 10-15% from the Dec15 5500 numbers (up from 5350 at Jun30), management restructuring /streamlining of functions, and changes at senior management and Board levels will occur.

I would also anticipate that marginal to average files /matters /areas of practice will be reviewed and that some areas of practice may be exited.

Similarly, some assets /functions will also be divested. For example, the financial services advisory arm in the UK (illustrative only of a non core, legacy acquired asset).

To succeed in the future and to recover some of that future, SGH does not necessarily have to be active in all areas of law, or in all areas of previously acquired practices. Some serious trimming of functions, work and of acquired practices is required.

So, yes, they will survive and succeed provided that they carry out the necessary reforms /restructures /efficiency and productivity drives that they should have been carrying out for some years now (but to date have not being so).

But if unchanged, then the future is more complicated, challenging and marginal in benefits and outcomes likely to be achieved. Taking the time now to get ahead of the curve would therefore be a smart move instead of reacting (as they have been doing to date).

In conclusion - SGH will still be trading in the future (not just in a few months time) provided that they embrace the changes required to do so.