Slater and Gordon has told suffering shareholders they must wait a bit longer for information on the embattled law firm's cashflow.
But plenty have decided not to, sending the stock tumbling on Thursday after the company backtracked on its December announcement that it would update the market this month.
Slater and Gordon shares slumped 17 per cent at the start of trade and closed 14 per cent lower, down 10.5 cents at 63 cents each.
It's another blow for the personal injury specialists, whose shares have plummeted more than 90 per cent from April's all-time high of $8.07 on concerns stemming from its $1.2 billion acquisition of UK firm Quindell's professional services business.
"It's no surprise to see a dramatic response to today's announcement," CMC Markets chief market strategist Michael McCarthy said.
"After issuing statements last year contradicting reports that there may some issues surrounding earnings and projections, it appears Slater and Gordon don't know what those projections should be."
In November, Slater and Gordon told investors spooked by the need for adjustments and corrections to its financial results that it remained on track to meet its full year guidance even though it was cash flow negative in the first half by $30 million to $40 million.
It then withdrew the guidance a month later and launched a review into how it forecasts its figures.
Slater and Gordon said on Thursday its gross operating cashflow will now be included in its first half results on February 29.
"This only adds to the state of confusion," Mr McCarthy said.
"There's one thing worse than a downward earning trend and that is uncertainty and confusion."
Slater and Gordon issued shares to investors in April at $6.38 each, and drew on additional debt of $375 million to fund the acquisition of Quindell.
The shares hit an all-time low of 53.5 cents last week.
The law firm's lenders have appointed investigative accountants to scrutinise its books, while group chief financial officer Bryce Houghton is in the midst of the review into the forecast process.
"The company advises that this process is proceeding as planned," Slater and Gordon said on Thursday in a release to the Australian Stock Exchange.
"In the course of this process, the company is considering its expectations for operating performance and cashflows for the balance of this financial year."
SLATER AND GORDON SHARE SLUMP
* April 7, 2015: $8.07 per share, an all-time high
* June 6: $5.06 after UK authorities announce a probe into Quindell
* June 29: $3.78 after Slater and Gordon admits to mistakes in its financial results
* August 6: $3.17 after Quindell reported a $795 million full year loss
* November 26: 94 cents after the UK government flagged possible changes to accident compensation laws
* January 21, 2016: 53.5 cents after the S&P/ASX200 falls for 11 of the first 13 trading days of 2016
* January 28: 63 cents as a brief recovery is wiped out by news Slater and Gordon will not issue a cashflow update
Share
