"Insolvency firm McGrathNicol has released its report on the...

"Insolvency firm McGrathNicol has released its report on the financial state of troubled law firm Slater Gordon concluding that a restructure may be required subject to additional forward projections.

The report says that the fundamental business is in fair shape . "

That could mean anything! They could be referring to restructuring the timing that debt repayments are due. There is nothing new in that.

We were given a Quarter 1 trading update at the AGM one month ago. In summary:
1. Australian operations have had a good start to the year delivering first quarter revenues and earnings in line with budget;
2. UK, first quarter earnings tracked slightly ahead of budget
3. Slater Gordon Solutions there was some revenue shortfall in the Slater Gordon Solutions Legal business or fast track division, driven by lower than expected case resolutions.
4. SGS Motor and Health businesses are broadly on track against budget

(It would have been good to know specifically what the budget is!)

"In summary, first quarter Group earnings and cash flows are significantly improved over the prior comparative period. Our challenge is to continue to accelerate this improvement process so that we may maintain the support of our lenders and ensure we move to a position where we have a sustainable capital structure. "

Regards

SP