Stock data
| Market cap. | A$279.9m |
| Last close | A$1.66 |
| High / Low (52 weeks) | A$2.4 / A$1.5 |
| Stock market listing | ASX |
| Forecast net debt (A$m) | 58 |
| Forecast gearing ratio (%) | 28 |
| Team | Consumer |
| Sector | Consumer Support Services |
Price performance
| % | 1m | 3m | 12m |
|---|---|---|---|
| Actual | 3.106 | 1.841 | (31.687) |
| Relative * | 7.211 | 2.867 | (23.43) |
* % Relative to local index
Other companies covered in sector
| Communisis | Empresaria |
| Healthcare Locums | Hogg Robinson Group |
| International Greetings | Johnson Service Group |
| Management Consulting Group | Matchtech Group |
| MITIE | RWS Holdings |
| St Ives | Tribal Group |
| Xchanging |
| Y/E Jun | Revenue (A$m) | EBITDA (A$m) | PBT (A$m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2010A | 124.7 | 31.1 | 27.8 | 17.5 | 9.5 | 7.1 |
| 2011A | 182.3 | 47.5 | 42.2 | 20.0 | 8.3 | 9.3 |
| 2012E | 205.6 | 52.4 | 45.4 | 20.8 | 8.0 | 8.9 |
| 2013E | 226.0 | 59.3 | 53.3 | 23.9 | 6.9 | 7.5 |
Last updated on 18/04/2012
Latest research
Investing for growth
Update | Consumer Support Services | 16/02/2012
Common law partners
Update | Consumer Support Services | 03/02/2012
Legal precedent
Outlook | Consumer Support Services | 14/12/2011
Investment summary
Slater & Gordon (SGH) has announced its long-awaited entry into the UK consumer law market, with the acquisition of Russell Jones & Walker (subject to regulatory approval) in a £54m deal. The market opportunity in the UK is 4-5x larger than in Australia where SGH leads already. H1 results to 31 December 2011 showed revenue weakness in the former Keddies practice, acquired in 2010, and investment in growing SGH's smaller family law and private client practices, as well as investment in group infrastructure ahead of the UK entry. We anticipate a stronger H2 and better cash generation.
Last updated on 23/04/2012
Industry outlook
Consumer law in both Australia and the UK has historically been relatively insensitive to the economy. PI continues to grow in Australia and we expect considerable industry shifts in market share in the UK.
Last updated on 23/04/2012
Key management
| Anna Booth, Chairman |
| Andrew Grech, MD |
| Wayne Brown, CFO |
Company address
| 485 La Trobe Street Melbourne, Victoria 3000 Australia (03) 9602 6888 View website |
