Financial Results to be released 28th August

http://www.theaustralian.com.au/bus...inancial-results/story-e6frg8zx-1227484281099

• The Australian
• August 15, 2015 12:00AM

Slater & Gordon has quietly delayed the release of its financial results for the financial year as it continues to assist the Australian Securities & Investments Commission, which has previously raised concerns about some accounting practices.

The Weekend Australian understands the delay is intended to give the company, which has been under scrutiny following the controversial acquisition of Britain’s Quindell’s professional services division, more time to finalise the accounts.

Slater & Gordon will now release its accounts on August 28, rather than August 24.

The firm hopes the release of its accounts will put an end to the shorting of its stock, which has dropped more than 50 per cent since the first reports of the ASIC probe.

Shares fell another 2.2 per cent yesterday to close at $3.13.

Market views about the embattled law firm continue to diverge, with analysts largely comfortable with the accounting treatments and outcome of the ASIC review.

Meanwhile short positions continue to grow, standing at 13.3 per cent of all outstanding shares on Monday despite the release of Quindell’s restated accounts — significantly lower — having little impact on Slater & Gordon.

Macquarie analysts said the Quindell restatements were conservative and hard to compare to those restated by Slater & Gordon at the time of the acquisition. “We continue to believe the current valuation is undemanding but it will take resolution of the ASIC investigation and then delivery of results in (the 2016 financial year) that demonstrate PSD can be operated profitably with sufficient cashflow conversion before the stock rerates,” they wrote.

“In our view the primary issue surrounding Slater & Gordon is the ASIC review of Pitcher Partners’ audit process, which has already identified an accounting error relating to historical UK cashflows,” UBS’s Martin Byers and Jack Briggs said.

“We believe continued consistent translation of work in progress based on accrual assumptions into cash receipts is key for (the company).”