Slater & Gordon Ltd
ASX:SGH
Slater & Gordon Ltd
Slater & Gordon Ltd., an Australian-based law firm, has a storied journey that mirrors the evolution of legal services from traditional office-bound practices to a more dynamic, client-centric approach. Founded in 1935, the firm began with a focus on personal injury litigation, rooting itself in advocating for individuals in their most vulnerable moments. Recognizing the changing landscape of legal needs, the firm broadened its portfolio beyond personal injury to encompass a diverse array of legal services, including employment law, union services, and class actions. This expansion was not just about adding new services but about aligning itself closer to the concerns of everyday Australians, providing a compassionate yet robust legal representation.
The firm’s business model revolves around leveraging its extensive expertise and reputation to attract a wide client base, ranging from individual clients seeking personal legal assistance to larger groups involved in class actions. Slater & Gordon generates revenue primarily through contingency fees in personal injury cases, earning a percentage of the settlement or court-awarded compensation. This model underscores their commitment to making legal services accessible, as clients incur fees only upon winning their case. The company's growth and operational strategy have also been bolstered by embracing technology and innovation to streamline processes and improve client service, ensuring they remain competitive in a saturated legal market. Through this approach, Slater & Gordon continues to forge a path where legal expertise meets empathetic client care, ensuring justice and legal redress are within reach for all those they serve.
Slater & Gordon Ltd., an Australian-based law firm, has a storied journey that mirrors the evolution of legal services from traditional office-bound practices to a more dynamic, client-centric approach. Founded in 1935, the firm began with a focus on personal injury litigation, rooting itself in advocating for individuals in their most vulnerable moments. Recognizing the changing landscape of legal needs, the firm broadened its portfolio beyond personal injury to encompass a diverse array of legal services, including employment law, union services, and class actions. This expansion was not just about adding new services but about aligning itself closer to the concerns of everyday Australians, providing a compassionate yet robust legal representation.
The firm’s business model revolves around leveraging its extensive expertise and reputation to attract a wide client base, ranging from individual clients seeking personal legal assistance to larger groups involved in class actions. Slater & Gordon generates revenue primarily through contingency fees in personal injury cases, earning a percentage of the settlement or court-awarded compensation. This model underscores their commitment to making legal services accessible, as clients incur fees only upon winning their case. The company's growth and operational strategy have also been bolstered by embracing technology and innovation to streamline processes and improve client service, ensuring they remain competitive in a saturated legal market. Through this approach, Slater & Gordon continues to forge a path where legal expertise meets empathetic client care, ensuring justice and legal redress are within reach for all those they serve.
Profit Growth: SGH reported a strong first half with NPAT up 2% to $518 million, EBIT up to $844 million, and EBITDA rising 1% to $1.1 billion.
Cash Flow Strength: Operating cash flow increased 32% to $1.1 billion, with EBITDA cash conversion at 98%, supporting a 4% reduction in leverage to 1.91x.
Margin Expansion: EBIT margin expanded to 15.6%, helped by profitability improvements at Boral and WesTrac and strict cost control.
Dividend Growth: Interim dividend was raised 7% to $0.32 per share, reflecting confidence in ongoing cash generation.
Boral Record: Boral posted record first-half results, with revenue up 7% and EBIT up 10% to $284 million, thanks to volume growth and effective pricing.
Stable Guidance: SGH reiterated its FY '26 guidance for low to mid-single-digit EBIT growth, citing balanced sector exposure and operational momentum.
M&A Flexibility: Management stressed comfort with higher leverage to pursue growth opportunities, but emphasized discipline in capital allocation and acquisitions.
Project Progress: Key milestones were achieved at Beach Energy and in property development, while the merger of Seven West Media and Southern Cross Media Group was completed, targeting $25–30 million in annual cost synergies.
