Financial performance not significantly different to last year
In financial year 2019 (FY19) Shine Lawyers obtained $650 million in damages for its clients. This was up $50 million compared to the previous year. One client won a $19 million settlement.
The firm settled 6K+ matters during FY19 with a staff of 850 – which were similar numbers to the previous year.
Annual revenue in FY19 was $177.9 million and EBIT $30.1 million both of which were not materially different to the previous year.
Staffing costs are vicinity of 52% of revenue – similar to previous year – which is a major determinant of profitability.
There was an improvement in cash flow. Cash revenue was $6.5 million higher than last year and payments to suppliers and employees was almost $3m lower.
Further diversification out of personal injury
According to the Chairman of the company, Tony Bellas it was “a year of consolidation, strengthening our core capabilities, growing the business and building for the future”.
“We continued to execute our strategy to diversify into practice areas in addition to personal injuries, notably class actions, family law, employment law, professional and medical negligence, dust diseases and abuse law.”
Shine Lawyers financially dodged the bullet of a class action brought against it in 2017.
Claims and legal automation project
In May 2019, Shine launched an online platform servicing small Queensland motor vehicle claims under a separate brand, Claimify. Shine describes it in its Annual Report as an “innovative digital product … a new way of delivering justice for our clients and we are proud that it is the first of its kind in Australia. Features include self-service online interview, deep learning case prediction tool, online client dashboard and claims automation. This is the first and most significant step we are taking to be a leader in what will be a key disruption in the legal services market.”