Listed law firm Shine Justice (ASX: SHJ) saw its profits rise by 53.6 per cent to $21.5 million in FY20 as the business weathered the shock of the COVID-19 pandemic.
EBITDA also rose by 7.8 per cent to $51.15 million for the full year, and revenue grew by 2.9 per cent.
Managing director and CEO Simon Morrison says Shine's business model was resilient in the face of COVID-19 economic impacts, with productivity unchanged despite many staff working from home during the second half.
"The challenges posed for business and the entire community by the COVID-19 pandemic in the second half of the financial year were met by the team at Shine Justice with remarkable resilience and we delivered a financial result in accordance with our guidance," says Morrison.
"The financial performance and outstanding results for our clients demonstrate the group's adaptability, innovation and organisational discipline to execute across our business, including Class Actions and Personal Injury, despite the varying conditions.
"The impact of COVID-19 accelerated the implementation of digital marketing and user facing technology. As a result, the Group has made good progress and remains on track to achieve its long-term strategy to expand its capabilities and set a platform for growth."
Shine named its successful result in the class action relating to faulty prolapse mesh and tape implants as a highlight for the year.
That decision is currently subject to an appeal which the firm says will be "vigorously opposed".
Further, settlement was reached in class actions against the Commonwealth Department of Defence for residents in the Queensland town of Oakey and Katherine in the Northern Territory in relation to claims for property and business losses due to exposure to toxic firefighting chemicals.
A new action has since been filed for property losses affecting up to 40,000 residents in seven other affected Australian locations similarly exposed to firefighting chemicals.
"I am delighted with the hard work and focus of all the team in a challenging year and remain very confident we are well placed to deliver steady organic growth as well as expanding our offerings and entering new markets that align with our long term strategy," says Morrison.
With respect to FY21, Morrison says to expect a continuation of the strong growth experienced by Shine during the last financial year.
"Despite prevailing economic uncertainty, Shine Justice is in a strong financial position, with a committed and talented team and the right strategy to deliver improved results, grow in new and existing markets and leverage opportunities with innovation and integration," says Morrison.
"We are expecting a continuation of EBITDAI growth in FY21, in the order of a high single digit percentage, subject to any material or unforeseen future impacts of the COVID-19 pandemic."
Business News Australia