Shine goes off law firm as it scraps dividend after tough year
Brisbane-based law firm Shine Justice has recorded a $3.1 million profit after what it called a disappointing year.
A convicted killer said the law should not apply to his case (AAP Image/Darren England)
The result was down 89 per cent from last year’s $63 million profit.
Revenue for the company increased but earnings fell because of an adjustment in the value of the Ethicon case disbursement which was reduced by $32.4 million.
Gross operating cash flow was hit by delays in the resolution of cases and longer than anticipated periods for court approvals of class action settlements. This included some cases in which Shine said it had expected its fees would be considered for approval in the current half-year.
Managing director Simon Morrison said despite the disappointing result revenue increased as a result of growth in personal injuries, particularly in Queensland.
“While the revenue growth was pleasing it was offset by increased direct and indirect costs,” he said.
No dividend was declared but the company said it expected to be able to pay dividends in the current year.
Morrison said the company expected earnings growth in 2024.
“Our pipeline of cases is strong. We are targeting a significant improvement in cash generation as major cases are concluded and as we implement improvements in our systems and processes for cases execution and cash collection,” he said.
Shine’s adjusted EBITDA was $61.6 million, down 2.3 per cent on the previous year.
