Shine Justice (SHJ) H2 2024 earnings summary

Executive summary

• FY 2024 marked a reset year with divestment of non-core businesses, streamlining to focus on personal injury and class actions, and simplifying operations.

• Revenue reached AUD 198.6 million, nearly doubling since IPO, but down 12.2% year-over-year due to one-off reversals and fewer fee earners.

• Over 5,000 cases resolved, securing damages exceeding AUD 810 million, including class action settlements totaling AUD 171 million and a record AUD 3.2 million judgment for black lung disease.

• Achieved record gross operating cash flow of AUD 51.8 million and a total dividend of AUD 0.055 per share, up 267%.

• Net profit after tax rose 82.4% to AUD 6.04 million, driven by improved case resolution and cost management.

Financial highlights

• Revenue was AUD 198.6 million, down 12% year-over-year; adjusted EBITDA down 26% to AUD 45 million, while unadjusted EBITDA rose 16.7% to AUD 33.8 million.

• Net profit after tax increased 82.4% to AUD 6.04 million; adjusted NPAT dropped 44.4% to AUD 14.45 million.

• EPS at AUD 0.035, up 83%; adjusted EPS at AUD 0.083, down 44%.

• Cash at bank just under AUD 30 million, up 39%; net debt reduced to AUD 26.1 million from AUD 51 million.

• Total dividend for the year AUD 0.055 per share, payout ratio 157% of EPS and 66% of adjusted EPS.

Outlook and guidance

• Focus remains on organic growth in personal injury and class actions, with plans to accelerate U.S. partnerships and expand regionally.

• FY25 budgeted for growth in both segments, targeting long-term cash conversion of 70%+.

• OpEx expected to remain flat in FY 2025, benefiting from FY 2024 cost initiatives and improved systems.

• US litigation funding expected to boost class actions growth.