This morning Slater & Gordon Ltd’s [ASX:SGH] shares grew by a staggering 33.18%.
Their share price now stands at $2.81 increasing significantly from what they stood at before.
Despite this massive increase, Slater & Gordon’s share price was at a much higher value last year, trading at $13.00 a share in March 2017.
Founded in 1935, Slater & Gordon Ltd operate as a law firm, working their legal practices in Australia and the UK.
They provide legal services to individuals in a variety of areas, such as vehicle accidents, civil liability law, estate planning and much more.
They sit on a market cap of $195.37 million and an enterprise value of $116.9 million.
Standing on better ground
Last year, Slater & Gordon called on its shareholders in order to vote for recapitalisation of its debt levels.
They owed a grand sum of $761 million, which is more than the overall value of the company.
The law firm has now improved its overall net asset position of $90.1 million, while also lowering its liabilities.
Business News Australia reported that Slater & Gordon stated:
‘The financial position at 31 December 2017 demonstrates that the fundamentals of the underlying business are strong and will benefit further from the transformation program.’
The positive results marks the beginning of Slater & Gordon’s turn around to aid the company from its liabilities and debt which was resulted from its attempt to expand into the UK.
Their UK operations have all been transferred to a new holding company, which allow Slater to primarily focus on recovering from their unfortunate venture.
Recently, Slater & Gordon has announced they are going to scale down their overall general law business by downsizing a number of practice areas in the criminal and family law areas.
They believe these changes will allow the firm to focus on delivering a great premium product for its clients.
Slater are committed with providing their clients with a quality service in contrast to their ambition to expand.
For, Money Morning
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