Slater and Gordon shares have dropped about 17 per cent after it dumped its earnings guidance for this financial year due to its UK business performing below expectations.
The law firm said on Thursday it is reviewing its approach to financial forecasting and withdrawing its recently reaffirmed full year guidance for 2016 of revenue in excess of $1.15 billion.
"There is a significant risk that full year guidance will not be met and accordingly the company withdraws its previous full year guidance pending the outcome of the review," the firm said in a statement.
Slater and Gordon's shares slumped from an all-time high of $8.07 in April to an all-time low of 59.5 cents in November on concerns about its UK business and revisions to its financial reports.
They recovered to $1.075 by close of trade on Wednesday but at Thursday's close had shed 18.5 cents to 89 cents.
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Slater and Gordon last month changed auditors after acknowledging that the need for adjustments and corrections to its results for the 2014/15 and 2013/14 financial years had undermined confidence in the business.
It has also repeatedly defended its acquisition of the UK business formerly known as Quindell.
Managing director Andrew Grech told last month's annual general meeting Slater and Gordon would be cash flow negative in the first half due to a slower than expected start to the financial year by its recent UK acquisition.
