SHINE EXTENDS SUSPENSION AMID PROFIT WARNING

Written on the 25 January 2016

SHINE EXTENDS SUSPENSION AMID PROFIT WARNING

SHINE Corporate (ASX:SHJ) has extended its voluntary suspension from the ASX ahead of what is expected to be an announcement of a significant fall in forecast earnings.

In the latest rumblings from the competitive legal sector, the Brisbane-based legal firm indicated its earnings this financial year were under review and would be lower than originally forecast.

The directors provided an earnings guidance of between $52 million and $56 million in August last year.

Shine entered a trading halt early last week, later requesting to be suspended from the official quotation before shares were due to resume trading.

The company was expected to make an announcement this morning, instead extending its voluntary suspension.

"Shine Corporate Ltd's management is currently reviewing its work in progress (WIP) recovery rates and provisioning," the company says in a statement.

"The company expects a material reduction in its previous FY2016 EBITDA guidance pending finalisation of this review."

The move comes on the heels of a tumultuous time for listed law firms, headlined by Slater and Gordon (ASX:SGH) which has withdrawn its profit guidance for FY2016 following poorer than expected returns from work on its books.

Shares in Shine are locked at $2 each, while Slater and Gordon's share price has toppled to 66c apiece following an ASIC investigation into its books last year.

Shine's shares have fallen more than 56 per cent since April last year, while Slater and Gordon's shares are down almost 90 per cent from highs reached around the same time.

The company is yet to determine with 'sufficient certainty' its revised earnings guidance range. An announcement is expected to be released to the market on Friday 29 January.

 


Latest News

BRISBANE COAL TERMINAL REOPENS AFTER SHIPLOADER REPAIR

COAL loading has recommenced at New Hope's (ASX: NHC) Brisbane terminal today after repairs to its ship loader, w...

SUPERYACHTS OFFER UNTAPPED POTENTIAL AT COMMONWEALTH GAMES

SUPERYACHT Australia has devised a strategy to attract more superyachts to Queensland and capitalise on revenue op...

GDP FIGURES A 'WAKEUP CALL' FOR PARLIAMENT

THE GDP figures are an end-of-year wakeup call for Parliament about what lies ahead for the country, according to ...

ACCC GIVES GO-AHEAD FOR NEWS CORP TO BUY ARM

NEWS Corporation (ASX: NWS) has been given the green light to acquire Australian Regional Media (ARM) from APN New...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter