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Shine Lawyers’ holding company reports 22% net profit increase
The holding company of Shine Lawyers has published its financial results for the last financial year, showing a “strong financial position” for the leading class action player.
Jerome Doraisamy
Shine Justice (ASX: SHJ), which owns national plaintiff firm Shine Lawyers, has released its results for the financial year ending 30 June 2022, with the company’s net profit after tax (NPAT) up 21.96 per cent to $31.21 million, compared to last year’s $25.59 million.
Total revenue for the company was up nearly 15 per cent, jumping from $187.21 million in FY21 to $215.13 million this past year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was also up more than 14 per cent, going from $55.2 million to $63.09 million in FY22, with “strong contributions” from the company’s personal injury practices, as well as its class actions, abuse law, medical law and head trauma teams.
Elsewhere, the company’s financial dividend was 3.5¢ per share, up from 3.25¢ last year.
The company’s gross operating cash flow was down 9 per cent in FY22; however, the company said that this was “within expectations”, given the business’ increased staff numbers, incoming new files and investments in branding, marketing, innovation and geographic expansion.
Lawyers Weekly reported on the firm’s FY21 results here.
The news follows the release of the financial year 2022 results from Clyde & Co, who revealed its Australian offices are bringing in the most revenue; Ashurst, which saw a 12 per cent revenue increase; Clifford Chance, which saw equity partner profits rise by 10 per cent; Herbert Smith Freehills, which recorded close to $2 billion in revenue; Pinsent Masons, which saw a PEP increase of 16 per cent; and IPH, which acquired a Canadian IP firm as it announced its end-of-year results.
Reflecting on the results, Shine Justice managing director and chief executive Simon Morrison said that the company is very pleased with its “strong market position” and “solid” earnings growth in FY22.
“The financial performance and outstanding results for our clients demonstrates the Group’s adaptability, innovation and organisational discipline to execute across our business,” he proclaimed.
“Our leadership team continued to strengthen, leading our capable and talented team members.”
Looking ahead to FY23, Mr Morrison said that despite the economic uncertainty of the past financial year, Shine Justice is “in a strong financial position, with a committed and talented team and the right strategy to deliver continually improving results, grow in new and existing markets and leverage opportunities with innovation and integration”.
“We are expecting increasing EBITDA growth again in FY23, in the order of a low double-digit percentage,” he posited.
On top of owning Shine Lawyers, the holding company also owns Sciaccas Lawyers, Carr & Co Divorce and Family Lawyers, and Claimify, among other businesses. Shine Justice employs nearly 1,000 professionals, working across 56 branches in Australia and New Zealand.
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly. A former lawyer, he has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. He is also the host of all five shows under The Lawyers Weekly Podcast Network, and has overseen the brand's audio medium growth from 4,000 downloads per month to over 60,000 downloads per month, making The Lawyers Weekly Show the most popular industry-specific podcast in Australia. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of Minds Count.
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