DIRECTORS DEPART AS SLATER AND GORDON POSTS BILLION-DOLLAR LOSS
Written on the 30 August 2016 by Laura Daquino
THREE long-time Slater and Gordon (ASX: SGH) directors are closing the book on the company, which has just confirmed a billion-dollar annual loss.
Lane and Court have been with the company for almost a decade, Fowlie for 13 years.
Tom Brown will join the company as a non-executive director and chair of the remuneration committee on September 1. He has held senior positions in companies including Mobil, BHP Billiton and Rolls Royce around the world, dealing with transformations in high growth and turnaround environments.
For this, Slater and Gordon took a goodwill writedown of $879.5 million, with just $3 million of this recognised in its second half.
Other costs stemming from Quindell included $33.3 million towards restructuring UK operations, including redundancies, and adopting a new accounting standard.
"The results for the first half were extremely disappointing and well below expectations," says Grech.
"In the second half we have taken significant steps towards turning around the performance of the UK business. Whilst the UK performance improvement programme is still in its early stages, the second half results indicate that our efforts are beginning to bear fruit."
"Clearly our key priority is to continue to put the UK business on a sounder footing and complete execution of the UK Performance Improvement Program (PIP)," says Grech.
"In Australia, we will focus on improving profitability and cash generation."