Why Is Shine Justice Launching a New 10% Share Buy-Back?

Shine Justice Extends Capital Management Efforts

Shine Justice Ltd (ASX, SHJ), a prominent player in the legal services sector, has announced plans for an additional on-market share buy-back, targeting up to 10% of its issued capital. This move follows the completion of a recent buy-back earlier this month, signalling a continued commitment to optimizing its capital structure.

The new buy-back program is scheduled to commence around 3 October 2025 and is expected to run for up to 12 months. The company emphasised that the timing and volume of share repurchases will be influenced by prevailing market conditions, the company’s share price, and its future capital requirements. This flexibility allows Shine Justice to adapt the buy-back pace as circumstances evolve.

Context and Previous Buy-Back Details

Earlier, on 30 August 2024, Shine Justice executed an on-market buy-back that saw 3,871,416 shares repurchased and subsequently cancelled, at a total cost of approximately $2.76 million. The current announcement builds on this strategy, reflecting the board’s confidence in the company’s financial position and outlook.

Importantly, the buy-back will be conducted within the regulatory framework set by the Corporations Act 2001 (Cth), specifically adhering to the '10/12' rule which limits buy-backs to 10% of the smallest number of votes attached to shares over the past 12 months. This ensures the process remains transparent and compliant without requiring shareholder approval.

Broker Appointment and Market Implications

Morgans Financial Limited has been appointed as the broker to manage the buy-back on Shine Justice’s behalf. Their role will be to execute share purchases in the ordinary course of trading, providing a measured approach to the buy-back that balances market impact with capital management goals.

For investors, this announcement signals a proactive approach by Shine Justice to enhance shareholder value through capital return mechanisms. However, the company has also cautioned that there is no guarantee the full 10% will be bought back, and it reserves the right to suspend or terminate the program if necessary.