Shine Justice Ltd. · ASX:SHJ
Shine Justice — H1 FY2023 Earnings Presentation
20 slides from Shine Justice's earnings presentation, Feb 23, 2023
Slide 1: ASX Announcement: FY23 Half Year Results Investor Presentation
23 February 2023 ASX Announcement Shine Justice Ltd (SHJ) FY23 Half Year Results Investor Presentation Attached is a copy of the FY23 Half Year Results Investor Presentation. Authorised for release by the Board For further information: Annette O’Hara Company Secretary aohara@shine.com.au For more in
Slide 2: Simon Morrison and Ravin Raj
Simon Morrison Ravin Raj Managing Director & CEO Chief Financial Officer 23 February 2023
Slide 3: Acknowledgement of Traditional Custodians
, a Shine Justice acknowledges yo the Traditional Custodians of the é Country throughout Australia Z£ @ and their connections to land, y waterways and community. We pay our respects to Aboriginal Py ect ee cr Pe Po 1 j and Torres Strait Islander cultures » and to Elders past, present and emerging.
Slide 4: Important Notice
Important Notice FY23 H1 Results Presentation This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Shine Justice Ltd and certain plans and objectives of the management of Shine Justice Ltd. Such forward-looking s
Slide 5: One Unifying Message to Right Wrong
One Unifying Message to Right Wrong Personal Injury NPA2 Motor vehicle, workplace, Shine Lawyers Family Law public liability, abuse • Class actions • Best Wilson Buckley (QLD) • Shine Lawyers1 • Superannuation and disability • Carr & Co (WA) • Sciaccas (QLD) • Head trauma • Stephen Browne (WA)1 • Ca
Slide 6: Agenda
Agenda 1 Headline Results 2 Financial Results 3 Operating Update 4 Strategic Priorities and Outlook 5 Questions 5
Slide 7: Headline Results
Headline Results Simon Morrison | Managing Director & CEO
Slide 8: Key Financial Metrics
Headline Results Revenue NPAT $111.21m $10.65m .v. .v. pcp $101.76m pcp $13.05m Key Financial EBITDA GOCF 2 $26.91m -$8.91m Metrics 1 .v. pcp $27.44m .v. pcp $6.68m Interim Dividend EPS (unfranked) (basic) 1.50c 6.18c .v. .v. 1 Discontinued operations (Emanate) eliminated in PCP comparatives. 2.50c
Slide 9: Strong progress of Group's strategy
Strong progress of Group’s strategy Resilient in challenging market • 3 new class actions filed in FY23H1 • 2 new offices in Victoria: Pakenham and Melton • 42 new fee earners • Organic growth and operational support on track in new offices Darwin, Adelaide, Canberra and • Midway through new marketi
Slide 10: Financial Results
Financial Results Ravin Raj | Chief Financial Officer
Slide 11: Financial Headline Results
Financial Headline Results FY23 H1 ($m) FY22 H1 ($m) Variance (%) 1 Revenue 111.21 101.76 ↑ 9.29 EBITDA 26.91 27.44 ↓ 1.93 NPAT 10.65 13.05 ↓ 18.39 2 GOCF -8.91 6.68 ↓ 233.38 Employee Benefits 1 60.50 54.85 ↑ 10.30 Expense 1 Overheads 34.47 28.52 ↑ 20.86 1 Discontinued operations (Emanate) eliminate
Slide 12: Financial Headline Results
Financial Headline Results FY23 H1 FY22 H1 Variance (%) Earnings per • Interim dividend reduced due 6.18 7.54 ↓ 18.04 share (cents) to lower cash generation in H1 Interim dividend • Dividends unfranked 1.50 2.50 ↓ 40.00 per share (cents) 1 Discontinued operations (Emanate) eliminated in certain PCP
Slide 13: Financial Results – Balance Sheet
Financial Results – Balance Sheet AS AT ($’000) 31 Dec 22 30 June 22 Cash 23,474 51,864 Receivables 15,766 15,754 • Cash in hand reduced due Work in progress 362,259 332,476 to use in strategic growth Unbilled disbursements 116,763 104,249 opportunities in new staff, PP&E and other 18,662 15,739 new
Slide 14: Financial Results – Normalised EBITDA ($'000)
Financial Results – Normalised EBITDA ($’000) 40,000 150 300 4,054 37,209 35,000 5,800 30,000 26,905 27,442 25,000 20,000 15,000 PCP 10,000 5,000 0 ReportedEBITDA Reported EBITDA Extra WIP Provisioning Loss of Productivity Marketing - Project UK Recruitment Normalised Normalised EBITDA Due to New St
Slide 15: Financial Results – Normalised GOCF ($'000)
Financial Results – Normalised GOCF ($’000) 10,000 1,700 9,194 300 150 949 3,000 6,676 5,000 6,200 PCP 0 5,800 -5,000 -10,000 (8,905) Reported Reported Overdue from Class Action Cost of Extra New Offices Project Spider UK Shine Funded Normalised Adjusted GOCF Litigation Court Approval 42 New Fee Rec
Slide 16: Operating Update
Operating Update Simon Morrison | Managing Director & CEO
Slide 17: Update – Class Actions Potential Damages >$1B
Update – Class Actions Potential Damages >$1B Litigation funding improving cash cycle and Shine’s competitive advantage for growth Current Class Actions Filed Class Actions Under • Litigation funding (LF) in class actions improves gross operating cashflow Class Actions FY23 Investigation • Historica
Slide 18: Strategic Priorities and Outlook
Strategic Priorities and Outlook
Slide 19: Our Blueprint with Five Pillar Strategy
Our Blueprint with Five Pillar Strategy Champion the Client Prioritise People Grow Shine Strengthen Shine Innovate Shine Short Term Outlook Medium Term Outlook • Macro conditions not expected to impact earnings • Ongoing technology improvements • Deploy capital for acquisitions and organic growth •
Slide 20: Any Questions?
Any Questions?