Deferred Consideration Write-Down Clouds Shine Justice’s Earnings Despite Revenue Rise

Financial Performance and Dividend Revival

Shine Justice Ltd has reported a solid 4.4% increase in statutory revenue for FY25, reaching $204.4 million, driven by growth in legal work and revenue per fee earner. Despite this top-line growth, adjusted EBITDA fell to $38.4 million from $45 million the previous year, primarily impacted by a $9.6 million write-down related to deferred consideration from a prior subsidiary sale. This non-cash adjustment weighed on statutory EBITDA, which settled at $28.7 million.

Notably, the company declared fully franked interim and final dividends totaling 5 cents per share, marking the first franked dividends since 2018. This move reflects Shine Justice’s renewed confidence in its cash flow and capital position, supported by controlled overheads and a cost reduction program embedded in FY24.

Leadership Changes and Strategic Direction

The year saw significant leadership evolution with Carolyn Barker AM appointed as CEO and Marc Devine as CFO, bringing fresh strategic and financial expertise to the group. Managing Director Simon Morrison transitioned to focus on growth initiatives, particularly in class actions. This leadership refresh aims to position Shine Justice for sustainable growth and enhanced market leadership.

Legal Outcomes and Market Position

Shine Justice’s personal injury and class actions practices delivered landmark results. The personal injury team resolved over 4,500 cases, securing damages exceeding $1 billion, including precedent-setting High Court victories and significant occupational compensation claims. The class actions practice achieved major settlements, including up to $202 million in the Northern Territory Stolen Wages case and $180.4 million in Western Australian Stolen Wages litigation, collectively awarding up to $380 million to Indigenous claimants.

Additional settlements against QSuper and EML Payments Limited, alongside ongoing investigations into high-profile matters such as Johnson & Johnson talcum powder and Depo-Provera contraceptives, underscore the firm’s robust pipeline and leadership in complex litigation.

International Expansion and Capital Management

Shine Justice has taken strategic steps internationally by establishing Shine Lawyers US, LLC in Arizona, securing an Alternative Business Structure licence. This move opens pathways for collaboration with US firms and adaptation of US litigation trends to Australian and New Zealand markets. The company remains cautious, balancing growth opportunities with disciplined capital management.

Capital management initiatives included an on-market share buy-back of approximately 2% of issued capital and a remuneration review for the Managing Director, reflecting a focus on aligning incentives with performance and growth objectives.

Outlook

Looking ahead to FY26, Shine Justice anticipates improved EBITDA and gross operating cash flow, supported by growth initiatives in personal injury and class actions, expansion in high-potential branches, and selective file acquisitions. The company’s strategic focus on sustainable earnings growth and market leadership positions it well, though outcomes remain subject to litigation cycles and regulatory conditions.