Shine Justice (SHJ) H1 2025 earnings summary

Executive summary

• Statutory revenue rose to $100.7 million for H1 FY25, up 2% year-over-year, driven by growth in Personal Injury despite a reduced workforce and efficiency focus.

• Leadership changes include the appointment of Carolyn Barker as CEO and Mark Devine as CFO, emphasizing operational execution and business simplification.

• The business is focused on personal injury and class actions, with other segments retired or run down to reallocate resources.

• 2,264 cases resolved, securing over $579 million in damages, including a landmark class action settlement for up to $180.4 million.

• Acquisition of Shine Lawyers NZ Limited in November 2024, with minimal immediate profit impact.

Financial highlights

• Adjusted EBITDA was $16.2 million, down from $22.2 million year-over-year, reflecting lower segment results and non-cash losses.

• Net loss after tax of $1.74 million, compared to a profit of $178,000 in the prior period, due to fair value losses and delayed receipts.

• Operating cash flow was negative $1.8 million, mainly due to a delayed $14 million class action receipt now expected in H2.

• Fully franked interim dividend of 1.5c per share declared, the first since 2018.

• Net debt at $61.2 million, with gross debt at $72 million, mainly due to refinancing and delayed receipts.

Outlook and guidance

• H2 FY25 expected to benefit from recovery of deferred fees and improved cash flow, with strong organic growth targeted in both Personal Injury and Class Actions.

• Significant class action pipeline, including US-sourced investigations and several filings expected in H2 FY25 and FY26.

• Portfolio funding solution for class actions targeted for completion by June 2025.

• Management expects growth in both core business segments in H2, with performance dependent on case filings and settlements.

• Personal injury strategy focuses on organic file growth, recoverability, and cost efficiency.