Is this the end of the Australian listed law firms?

A few weeks ago Shine Corporate – Australia’s second listed law firm – entered voluntary suspension from trading on the ASX pending the outcome of a review of their work in progress (WIP) recoverability.

The outcome of this trading halt was a $17.5m in WIP provision and lower than expected fee to file ratio to the tune of a further $10.5m. This effectively slashed the previous guidance by over 50% to about 26% causing the share price to drop 73.5% to $0.53.