Shine Justice (SHJ) H2 2024 earnings summary

Executive summary

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

• Resolved over 5,000 cases, securing more than AUD 810 million in damages for clients, and achieved major class action settlements.

• Cost reduction initiatives delivered AUD 14.7 million in future cash savings and AUD 12 million in expense savings, simplifying the business structure.

• Revenue nearly doubled since IPO in 2013, reaching AUD 198.6 million, with 51 offices and 533 fee earners.

• Significant class action settlements included AUD 171 million in PFAS and Evans Dixon cases, and a pending AUD 180 million settlement for stolen wages.

Financial highlights

• FY24 revenue was AUD 198.6 million, down 12% year-over-year; adjusted EBITDA down 26% to AUD 45 million; unadjusted EBITDA up 14–17% to AUD 33.8 million.

• Net profit after tax up 89–1425% to AUD 6 million; adjusted NPAT fell 44% to AUD 14.5 million due to non-recurring items.

• Record gross operating cash flow of AUD 51.8 million, up 82%; cash at bank just under AUD 30 million, up 39%.

• Net interest-bearing debt at AUD 26.1 million, down from AUD 51.4 million.

• Total unfranked dividend of AUD 0.055 per share, up 267% year-over-year, reflecting 66% of adjusted EPS.

Outlook and guidance

• FY 2025 expected to see immediate improvement in personal injury segment financial performance, including EBITDA margin.

• Focus remains on organic growth, expense management, and cash generation, with a short-term GOCF target of 70%+ conversion.

• Board expects OpEx to remain flat in FY 2025, benefiting from FY 2024 cost initiatives.

• Revenue results for FY 2024 seen as a fair base for growth in FY 2025, with adequate provisioning in place.

• US litigation funding expected to support class actions growth.