Business in 90 Seconds
In this update: troubled law firm, slater and gordon, says it's broke and is operating at the mercy of its lender; major insurer,QBE, says it expects the market backdrop to remain challenging this year despite posting a strong rise in annual profit; shares in QBE rose today and by the close were up just over 2 percent; the broader Australian share market closed in the red
Transcript
-
TROUBLED LAW FIRM, SLATER AND GORDON, SAYS IT'S BROKE AND IS OPERATING AT THE MERCY OF ITS LENDERS. THE INDEBTED COMPANY MADE A NET LOSS OF $425 MILLION DOLLARS FOR THE SIX MONTHS TO THE END OF DECEMBER AFTER IT WROTE DOWN THE VALUE OF ITS UK BUSINESS AND REVENUE SLUMPED BY ONE THIRD. THERE'LL BE NO DIVIDEND PAYOUT FOR INVESTORS. SHARES IN SLATER AND GORDON ARE DOWN 20 PER CENT
MAJOR INSURER, Q-B-E, SAYS IT EXPECTS THE MARKET BACKDROP TO REMAIN CHALLENGING THIS YEAR DESPITE POSTING A STRONG RISE IN ANNUAL PROFIT. THE INSURER SAYS 2016 NET PROFIT ROSE BY NEARLY ONE QUARTER TO NEARLY ONE POINT ONE BILLION U-S DOLLARS. INVESTORS WILL GET A FINAL DIVIDEND OF 33-CENTS A SHARE, PARTIALLY FRANKED. AT THE SAME TIME QBE HAS UNVEILED A $1 BILLION SHARE BUYBACK SCHEME TO REWARD SHAREHOLDERS
SHARES IN QBE ROSE TODAY AND BY THE CLOSE WERE UP JUST OVER 2 PERCENT… LEND LEASE WAS ANOTHER STRONG PERFORMER AFTER ANNOUNCING A 12 PERCENT RISE IN ITS HALF YEAR PROFIT..
SLATER AND GORDON SHARES PLUNGED NEARLY 22 PERCENT. AMONG THE WEAKER PERFORMERS TODAY, SANTOS AND COCA COLA AMATIL.
THE BROADER AUSTRALIAN SHARE MARKET CLOSED IN THE RED, WAY DOWN BY MINING AND ENERGY STOCKS, THE ALL ORDS OFF A QUARTER OF A PERCENT, SO WAS THE ASX 200 INDEX.
