Shine Justice (SHJ) H2 2024 earnings summary

Executive summary

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

• Revenue nearly doubled since IPO, reaching AUD 198.6 million, with over 5,000 cases resolved and damages exceeding AUD 810 million.

• Achieved record gross operating cash flow of AUD 51.8 million and a total dividend of AUD 0.055 per share, up 266.7% year-over-year.

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

• Cost reduction initiatives delivered significant future cash and expense savings, simplifying the business structure.

Financial highlights

• FY24 revenue was AUD 198.6 million, down 12% year-over-year; adjusted EBITDA down 26% to AUD 45 million; EBITDA rose 16.7% to AUD 33.8 million.

• Net profit after tax rose 82.4% to AUD 6.04 million; adjusted NPAT fell 44% to AUD 14.5 million due to non-recurring items.

• Gross operating cash flow surged to AUD 51.8 million; cash at bank just under AUD 30 million.

• Net debt reduced to AUD 26.1 million from AUD 51 million.

• Total dividend per share rose to 5.5 cents, reflecting 66% of adjusted EPS.

Outlook and guidance

• FY25 expected to see growth in personal injury and class actions segments, with improved financial performance and 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 FY25, benefiting from FY24 cost initiatives.

• Revenue results for FY24 seen as a fair base for growth in FY25, with adequate provisioning in place.

• US litigation funding expected to support class actions growth.