Despite today’s slight 0.32% increase, Slater & Gordon Limited [ASX:SGH] have consistently been dropping in share value over the past six months.
During the month of October their shares were valued at $6.80, now they are only trading for $3.12 a share.
Spin off firm
Peter Gordon has recently launched a full-service law firm called ‘Gordon Legal’ which focuses on fighting for the ‘everyday Australian’ instead of those with heavy pockets.
James Higgins states the firm is not trying to be the next Slater & Gordon.
The new firm will focus on services such as transport accident claims and family law.
Business news Australia reported that James Higgins stated:
‘We think that’s attractive to the union movement members because they have different legal needs, they’re not all just injuries. The average person has a divorce or and needs a will, or has a fight or gets done for drink driving on a bad day. They’re all things that we think we can help with and do it in a way which is focused on service.’
Higgins has high hopes for the new firm, as the company has employees scouting opportunities for offices in other states.
After appointing a new chief executive, Slater & Gordon are expected to downsize various parts of its business, which will result in a number of job cuts.
The actual number of job losses is currently unknown, however they have suffered a talent skirmish with ACA lawyers.
Their branch off company is one of the reasons why they have decided to downsize as matters in small practices will be allocated to their other branch.
The Sydney Morning Herald reported that Slater & Gordon’s, Mr Somerville, stated:
‘The legal sector in Australia is entering a period of significant change, and this type of environment presents numerous opportunities for organisations that are best placed to navigate these changes.’
Editor, Markets & Money