Over the past 12 months, shares in Slater & Gordon Limited (SGH) have risen almost as aggressively as its acquisition strategy. Had you owned SGH shares around the start of September last year, you would have experienced an 82% increase in share price from $3.52 to $6.42, giving the company a market capitalisation approaching $1.3 billion, and collected 6.85c in fully-franked dividends along the way. It’s now trading closer to $6.15 but with an additional 5c dividend to be paid shortly, this has lead to handsome outperformance over the ASX All Ordinaries Index over the same period.
Slater & Gordon Limited (SGH)
Slater & Gordon was one of the standouts this reporting season, reporting strong growth in both revenue and earnings per share – up 40.4%, and 26.8% respectively. Not bad for a business that’s effectively a commoditiser of legal services.