Shine Justice (ASX:SHJ) reported a return to profitability for the first half of FY26, highlighting revenue growth in its core personal injury business, progress in class actions settlements that are expected to convert to cash in the second half, and early momentum in its developing International Mass Torts (IMT) strategy.
Profitability returns as revenue and margins improve
Group CEO Carolyn Barker said the company delivered net profit after tax (NPAT) of AUD 6.7 million for the half, compared with a loss of AUD 1.7 million in the prior corresponding period (FY25). CFO Marc Devine attributed the improved result to underlying business performance and productivity improvements.
- Revenue of AUD 108.8 million, up 8% from AUD 100.7 million
- EBITDA of AUD 21.1 million, up 77% from AUD 9.2 million
- Earnings per share (EPS) of AUD 0.0455, up from negative AUD 0.0101
Devine said the EBITDA margin improved to 19% from 11% a year earlier. He noted employee expenses rose only 1.5% despite wage pressure, which he said was largely offset by lower headcount compared with the prior period. Overheads were described as flat, while recoverability improved across most regions versus the prior year.
Interim dividend declared; buyback remains available
Management declared a AUD 0.015 fully franked interim dividend, payable on 24 April. Devine also said an on-market buyback remains in place, with 380,000 shares bought back during the half. He added the company has not been active in the buyback “in the last 6 to 9 months,” but said it would consider further buybacks “when capital management allows.”
Cash flow hit by class actions timing; receipts expected in H2
Operating cash flow for the half was -AUD 6.3 million, which Devine said was mainly due to class action settlement receipts slipping from the first half into the second half. He quantified the delayed receipts at AUD 17.6 million, citing timing issues including court orders deferred from late December into the new year. Devine said the risk of not receiving the cash was “very minimal” and the issue was “more just the timing,” adding the company expected the remaining balance to be received in March after having already received AUD 8.5 million in January and February.
He also noted personal injury cash receipts were affected late in the calendar year by delays in processing settlement clearances through a government agency, but said the “blockage has eased up.”
Shine presented a “normalized” view of operating cash flow, showing that if the class action receipts had been received by 31 December, group operating cash flow would have been AUD 11.3 million for the half.
On the balance sheet, Devine said the company used its overdraft facility due to the receipt delays, with cash and bank balances moving from AUD 18.1 million at June to AUD 1.1 million at December. He said there was “plenty of headroom” in facilities. He also cited net debt of AUD 39.9 million, a debt-to-equity ratio “less than 31%,” and an average cost of debt “around 8%.”
Personal injury gains and class actions pipeline
Barker said Shine remains a leading player in Australian personal injury (PI), describing a market where three major competitors account for roughly 30% of the market and the remaining 70% is fragmented among smaller firms. She said Shine currently has 43 PI offices and about 540 PI staff, and holds “just under” 10% market share.
In the first half, Barker said Shine resolved over 2,000 PI cases securing AUD 376 million in damages. She also pointed to technology investments supporting faster response times and improved conversion, citing the integration of Salesforce-based CRM tools and work underway on cloud and AI-enabled workflows. Barker emphasized that cash receipts in PI can be “lumpy” due to matter duration and timing, even when revenue is recognized over reporting periods.
In addition, management said it acquired 168 quality files in the first half as part of a file acquisition strategy. In response to an analyst question, Devine cautioned that file acquisitions are likely to be “a bit lumpy” from period to period and did not commit to a repeat of the first-half volume in the second half.
In class actions, Barker said Shine reached four in-principle settlement agreements in the first half totaling AUD 232 million in gross client quantum, with cash expected to flow in the second half. She also described a continuing pipeline of 27 class actions under investigation and 27 filed actions, and said the firm’s portfolio mix spans areas including financial services, First Nations, shareholder and consumer matters, employment, and medical matters to help balance risk.
During Q&A, Devine said Shine had about AUD 7.8 million “locked up” in class action investigations, and suggested that “just over half” of that was nearing the point where funding would be needed to convert those investigations into active matters, which would enable revenue recognition. He said the company expected to provide more financial detail on international mass torts by the end of the financial year.
International Mass Torts expansion and funding developments
Managing Director and Head of IMT Simon Morrison said the international mass torts strategy is designed to source and fund large-scale US-originated cases that can be litigated in countries where Shine has a class actions presence. He described a “hub-and-spoke” structure, with a US hub and operating spokes in Australia, New Zealand, and Thailand.
Morrison said Shine has filed three large class actions in Australia on a protected basis:
- Johnson & Johnson talc litigation
- Proton Pump Inhibitors class action
- 3M Combat Earplugs class action
He said Shine expects to file its first mass tort class action in New Zealand within “the next 90 days or so,” and has established an operation in Bangkok, Thailand, in partnership with a Bangkok-headquartered litigation firm, with the Johnson & Johnson talc matter described as the first case to be filed there.
On funding, Morrison said Shine secured a funding facility from an international litigation funder of up to AUD 40 million for a single large mass tort case to be litigated in Australia. He described it as the company’s first such facility and, in his words, “the largest funding secured for a single case in Australian class action history.” He added Shine is also negotiating a portfolio funding facility to litigate multiple class actions and said discussions are at a “very mature stage.”
Morrison also discussed regulatory progress in the US, saying Shine applied for and received an operating license from the Arizona Supreme Court, describing Shine as the first international law firm to secure an ABS license in the United States. He said Shine acquired a small personal injury practice in Tempe, Arizona, and described the license as strategically important for opportunities connected to mass torts.
In response to a question on partner involvement, Morrison said Shine works with US law firms that have already litigated, or are currently litigating, the cases Shine is contemplating filing. He said those partners assist with evidence development, litigation strategy, expert selection, and discovery approach, while noting there are restrictions on what can be shared in certain circumstances such as when US cases have settled.
Barker closed by noting that calendar 2026 marks Shine’s 50th year of operations, and reiterated the company’s “dual engine” approach spanning personal injury and class actions alongside investments in technology and international expansion.
About Shine Justice (ASX:SHJ)
Shine Justice Ltd, through its subsidiaries, provides damages-based plaintiff litigation legal and insurance recovery consulting services in Australia and New Zealand. It operates through two segments, Personal Injury and New Practice Areas. The Personal Injury segment provides services related to public liability, workers' compensation, abuse law, and motor vehicle accidents. The New Practice Areas segment offers disability insurance and superannuation claims, asbestos and dust disease, medical law, head trauma, class actions, commercial disputes, employment, private client services, family law, and catastrophic injuries.
