Slater & Gordon has announced a A$425.1m (£262.8M) net loss during the first six months of the 2016/17 financial year.
The loss was primarily attributed to a A$350.3m impairment charge related to its acquisition of insurance outsourcer Quindell’s professional services arm.
The firm also said the result was impacted by underperformance across its UK and Australian operations in relation to the resolution of personal injuries claims.
The result is a marked improvement compared to the firm’s A$958.3m (£493m) loss recorded during the first six months of the 2015/16 financial year.
However, revenue also decreased in the first six months of 2016/17 despite a surge in the previous financial year. Turnover dropped 34 per cent in the first half of 2016/17 from A$487.5m (£301.3m) to A$322.7m (£199.5m).
Managing Director Andrew Grech said: “This half year result continues to reflect a business that is still very much in the midst of a major transition.
“While we have made progress in the UK in the past 12 months, the turnaround is taking longer than we anticipated and billed revenue performance in segments of the business is lower than expected.”
Slater & Gordon acquired Quindell for £700m in 2015. However, the Financial Conduct Authority (FCA) then launched an investigation into an overstatement of Quindell’s 2014 profits.
The FCA ended its investigation in late 2015 to allow the Serious Fraud Office to begin its own criminal investigation.
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