Shares of law firm Shine Corporate Ltd (ASX: SHJ) fell more than 10% today following the release of its half-year report.

In the six-month period to 31 December 2015, Shine reported a 13% fall in revenue to $64 million and a profit of $1.33 million – down 90% on the prior corresponding period.

The company, which recently commenced a comprehensive review of the way it reports its financials, said today’s result reflects the changes it implemented to its reporting structure, and impairments associated with the review.

“The major feature impacting the first half result was the additional provisions totaling $17.5 million which were recognised against work in progress, disbursements and debtors,” Managing Director, Simon Morrison, said. “These additional provisions are regarded as one off, the majority of which have been taken up to reflect the risk that some matters, other than those for which a provision is already held, will ultimately not result in a fee for Shine.”

The company’s board elected to withhold from paying a dividend to shareholders. However, they do believe the company will be in a position to reinstate the dividend upon announcement of the full-year results.

Further, Mr Morrison said his team remain confident in Shine’s business model. “In addition, despite the result for the half year, we remain confident in the Shine business model and are focusing on improving the levels of recoverability and improving the results,” he said. “We look forward to capturing these improvements and reporting on that progress at the full year.”

The company reaffirmed full-year EBITDA (earnings before interest, taxes, depreciation and amortisation) guidance in the range between $24 million and $28 million.

Foolish takeaway

Shine, like Slater & Gordon Limited (ASX: SGH) before it, is being forced to reassess the way it presents its results. Arguably, the underlying business model may not have changed materially as a result of the new reporting structure. Therefore, value investors may think today’s share price weakness is an opportunity. However, I think it’d be wise to consider the risks before building a position.

Want our BEST technology stock idea?

Our expert analysts recently hand-picked their top technology stock idea for 2016. And it's easy to see why: It has a big dividend yield, is growing rapidly and has heaps of cash on its balance sheet. Best of all: their top stock pick of 2016 is yours free! Just click here, enter your email address, and we'll send you their research report. No credit card details or payment required.

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool writer/analyst Owen Raszkiewicz owns shares of Slater & Gordon. Owen welcomes -- and encourages -- your feedback on Google+, LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.