Slater and Gordon will next week post a full year loss of $1.017 billion.
However, the losses are slowing and work to turn around its UK business appears to be having an impact.
The second half loss after tax is expected to be $59.3 million compared to a first half loss of $958.3 million, which included a $876.4 million non-cash impairment charge against goodwill on its UK business.
Its shares jumped on the news. A short time ago they were up 5% to $0.605, but still a long way from the 12 month high of $3.56.
The ASX-listed law firm has been under pressure because of a poorer than expected financial performance from the UK business and the potential impact of foreshadowed British Government changes to road traffic accident compensation laws.
Today, Slater and Gordon says total revenue for the year is expected to be $908.2 million.
“Slater and Gordon’s FY16 performance is a story of two different halves,” says managing director Andrew Grech.
“The results for the first half were extremely disappointing and well below expectations.
“In the second half we have taken significant steps towards turning around the performance of the UK business.
“Whilst the UK performance improvement program is still in its early stages, the second half results indicate that our efforts are beginning to bear fruit.”
The law firm lost $2 billion in market capitalisation in 2015 and hundreds of millions since the British’s government announcement in November that it planned to limit compensation for road accidents.