Shine Justice (SHJ) H1 2025 earnings summary

Executive summary

• Statutory revenue rose to $100.7 million for H1 FY25, up 2.4% year-over-year, driven by Personal Injury growth and despite a reduced workforce and efficiency focus.

• Adjusted EBITDA was $16.2 million, down from $22.2 million, impacted by a $4.1 million non-cash write-down and lower segment results.

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

• Personal Injury remains the core business, with class actions as a strategic growth area; several new class action investigations are advancing to funding stages.

• Appointment of Carolyn Barker AM as CEO and Mark Devine as CFO, with a focus on operational execution and business simplification.

Financial highlights

• Revenue and income increased by $2.4 million compared to the prior period, with statutory revenue at $100.7 million.

• Adjusted EBITDA was $16.2 million, down from $22.2 million, with statutory EBITDA at $11.9 million.

• Net loss after tax of $1.74 million, impacted by a $4.1 million fair value loss and delayed class action 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 1.5 cents per share declared, the first since 2018.

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 several new investigations and US mass torts, with portfolio funding sought to accelerate filings.

• $14 million in delayed class action receipts expected to bolster H2 cash flow.

• 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.