A listed Australian law firm which once had plans to expand into the UK today halted trading in its shares after a profit warning.
Shine Corporate Ltd today placed securities in a ‘trading halt session state’ pending the release of an announcement to the Australian stock exchange, likely to be made on Thursday.
Yesterday the company said it was reviewing its work-in-progress recovery rates and provisioning and expects to announce a ‘material reduction’ in the profit forecasts previously made.
In its investor presentation last October, Shine predicted profits before tax of A$44m (£21.3m) for the 2015 calendar year – up 28.7% on the previous year. Revenue was expected to increase by 30.4% to A$150.9m (£73.1m).
In 2013 firm expressed its intention in 2013 to expand into the UK, following in the footsteps of listed Australian rival Slater and Gordon.
The Queensland-based company, with 650 staff in 30 offices across Australia, said it had been eyeing the UK market since 2000 and saw an opportunity to move into a larger market.
But the firm has gone quiet on a move to the UK since then, and even moved in November to assure the stock exchange it had ‘no exposure’ to the UK market, following George Osborne’s proposal to reform the personal injury market. PI work accounts for around 78% of the firm’s income.
Shine’s share price value has dropped from a six-month high of A$2.71 in August, to A$2 when trading was halted.
The firm has a longstanding link with the US and is supported by consumer advocate Erin Brockovich.
The firm’s reduction in profit forecasts has echoes of that made by Slater and Gordon in December, when the company downgraded its projections after experiencing slower case resolutions than expected.