Beleaguered law firm Slater and Gordon has conceded it is struggling to accurately forecast its financial performance, after worse than expected results from its UK business forced it to abandon its earnings guidance.
The company's shares plunged more than 20 per cent in early trade before recovering to be down 11.6 per cent at 95¢ in mid-morning trade.
Slater and Gordon's shares have fallen 89 per cent in the past 12 months following a series of questions about its accounting practices and the performance of its UK legal services business, Quindell, which it acquired in March for $1.3 billion
Slater and Gordon.
But chief executive Andrew Grech told investors on Thursday that "lower than expected trading results in segments of the business in the UK in November" and a review of the company's forecasting processes by new chief financial officer Bryce Houghton had forced the company to withdraw its guidance.
"We have previously advised the market that the performance of our UK operations during the first half has not been in line with our expectations," Mr Grech said in a statement.
"It is now clear to us that the slower rate of case resolutions in the first half has had a larger impact than previously thought, and that this may well flow through to a reduced profit for the full year.