TOUGH HALF TAKES SHINE OFF LAW FIRM

Written on the 24 August 2016 by Nick Nichols

TOUGH HALF TAKES SHINE OFF LAW FIRM

SHINE Corporate's (ASX:SHJ) full-year earnings have slumped 50 per cent after a tumultuous year for the ASX-listed Brisbane law firm.

The $14.8 million net profit compares with $29.6 million in FY15 and comes despite a record year of billings by the group with customer receipts rising to $152.9 million from $134.6 million.

However, group revenue remained flat, edging 0.4 per cent higher to $151.5 million due to provisions made in the first half.

Shine showed some stability in the second half after the disastrous first half was impacted by the $17.5 million provision for work in progress after a review of operations revealed a number of personal injury cases on its books were unlikely to succeed.

EBITDA (earnings before interest, tax, depreciation and amortisation) of $24 million was at the lower end of its revised guidance issued in February.

Positives for Shine in the second half included an improved contribution from its subsidiaries, with EBITDA up 29 per cent to $3.3 million compared to a year earlier.

Shine today has also appointed its CEO Courtney Petersen, who has been with the company for 17 months, to the position of managing director too. After almost three decades with the company, outgoing managing director Simon Morrison will take on an executive director role. 

During the second half of this reporting period, Shine secured a long-awaited win through the settlement of a $250 million class action against a hip replacement manufacturer DePuy and Johnson & Johnson.

The company is expecting this to benefit its bottom line in FY17.

Shine CEO and managing director Courtney Petersen (pictured) says the FY16 result largely reflects the provisions made in the first half.

"The impact of this change to provisioning has flowed through to the full year," she said.

The company has since implemented a more rigorous provisioning policy to prevent a repeat of the first-half announcement, which saw the company's shares slump more than 75 per cent in January.

The shares later stabilised to hover around $1.30 for most of the year, but today they slipped more than 8 per cent following the profit announcement.
Shine has not issued profit guidance for the current financial year.

The company is paying a final dividend of 2.5c a share after failing to pay an interim dividend. This compares with a 3.75c payout in FY15.

READ MORE FROM SHINE


Author: Nick Nichols

Latest News

SIRTEX CEO DISMISSED FOLLOWING SHARE TRADING PROBE

SIRTEX Medical Ltd (ASX: SRX) has sacked its chief executive officer, Gilman Wong (pictured), following an investigat...

SANTA DELIVERS KOGAN A GIFT

KOGAN.COM (ASX: KGN) has exceeded its expectations and reported another strong quarter of trade.

The online retail...

FOUR WAYS YOU SHOULD PROTECT YOUR IT SYSTEMS FROM EXTREME WEATHER

SHANNON Overs, co-founder of onPlatinum ICT, sees it too often, perhaps half a dozen times per year businesses tha...

IOT GROUP ORDERS FIRST PRODUCTION OF ROVA DRONE

IOT Group (ASX:IOT) has ordered production of 40,000 units of the ROVA flying selfie drone from Chinese technologies ...

Related News

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

SMES TAKE RETAIL MARKET SHARE AS CONSUMERS CHOOSE PERSONALISATION

IN a battle for the hearts and wallets of Australian consumers, it appears that small and medium retail businesses...

KNOWLEDGE WORKERS AMONG MOST SOUGHT AFTER IN 2017

BUSINESSES searching for efficiencies and improved systems are in search of knowledge workers early this year, say...

FEMALE ENTREPRENEURS GET SPRINGBOARD TO GROWTH

DESPITE the fast-growing number of women studying STEM subjects at school and university, women continue to be und...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter