Shine Justice Ltd has reported a strong turnaround in its half-year results to December 2025, posting an 8% revenue increase and a return to profitability with a $6.7 million net profit. The legal services firm saw robust growth in personal injury litigation and ongoing class actions, despite cash flow challenges from delayed settlements.
- Revenue up 8% to $108.8 million
- Net profit after tax of $6.7 million, reversing prior loss
- EBITDA surged 77% to $21.1 million
- Delayed class action settlement receipts impacted cash flow
- Interim dividend declared at 1.5 cents per share, fully franked
Strong Financial Turnaround
Shine Justice Ltd has delivered a notable recovery in its financial performance for the half-year ended 31 December 2025. The company reported revenue of $108.8 million, an 8% increase on the prior corresponding period, alongside a net profit after tax of $6.7 million. This marks a significant reversal from the $1.7 million loss recorded in the previous half-year.
The firm’s earnings before interest, tax, depreciation and amortisation (EBITDA) rose sharply by 77% to $21.1 million, driven primarily by growth in its core personal injury litigation segment. This segment saw an 11% revenue increase, reflecting higher legal work volumes, improved billing recovery, and reduced fee write-offs.
Class Actions Segment and Cash Flow Challenges
While the class actions segment reported a modest 1% revenue increase, its EBITDA declined due to a $2.3 million write-down related to a legacy self-funded case. The segment remains active with several settlements reached, including significant agreements against Colonial First State Investments Limited and AMP Limited, pending court approval.
Cash flow was notably impacted by delayed receipts from class action settlements, amounting to $17.6 million. These delays, attributed to extended case resolution and court approval processes, resulted in a negative gross operating cash flow of $6.3 million and a net operating cash outflow of $12.9 million. The company expects the majority of these funds to be received by the end of the third quarter of the financial year.
Balance Sheet and Capital Management
Shine Justice’s net debt increased to $79.9 million, up from $53.6 million at the previous year-end, reflecting the cash flow timing issues. The company drew on its Group Limit Facility, resulting in a net overdraft position of $9.5 million at 31 December 2025. Despite this, Shine Justice remains compliant with its financial covenants and maintains a strong net tangible asset backing of $1.32 per share.
The board declared a fully franked interim dividend of 1.5 cents per share, signalling confidence in the company’s ongoing profitability and cash generation prospects. Shine Justice continues to focus on organic growth, operational efficiencies, and securing external funding for class actions to reduce cash flow volatility.
Outlook and Strategic Focus
Looking ahead, Shine Justice anticipates improved profitability and more stable cash flows in the second half of the financial year. The company is actively investigating new class action cases, both domestically and internationally, with several expected to progress to live matters. The strategic shift towards externally funded class actions aims to mitigate the cash flow risks historically associated with this segment.
Operational improvements, including technology adoption and process optimisation, remain central to the company’s growth strategy. Shine Justice’s leadership expresses confidence in sustaining earnings growth while delivering strong client outcomes across personal injury and class action practices.
Bottom Line?
Shine Justice’s H1 results mark a clear recovery, but cash flow timing and class action funding remain key factors to watch.
Questions in the middle?
- How will Shine Justice manage cash flow volatility from delayed class action settlements going forward?
- What is the outlook for external funding arrangements to stabilise class action cash flows?
- Which new class action cases in the pipeline could materially impact future earnings?