February 2016’s results reporting season was certainly a moment and perhaps no results report captured the spirit of the season better than Slater and Gordon’s interim results announcement on Monday 29 February 2016: statutory NLAT of $958.3 million due to an $876.4 million non-cash impairment charge of which $814.2 million is against the goodwill of the recently acquired Quindell professional services division, since re branded as SGS. That this acquisition, first announced to the market on 30 March 2015 with a price tag of £637 million or AUD$1.225 billion, and partially funded via an $890 million pro-rata accelerated renounceable entitlement offer of 2 for 3, priced at $6.37 per new share, could by the end of 2015 result in such a significant impairment, raises more issues than were answered in the 36 minute half-yearly results call on Monday. I joined the call part way through the CFO’s presentation before the very brief Q&A. An analyst request during the call for more colour went unanswered. I take a look at Slater and Gordon's half yearly results in this note. (VIEW LINK)



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