Shine Justice books $13.7 million class action write-down ahead of FY26 results
Shine Justice Ltd (ASX: SHJ) has advised a complete write-down of $13.7 million on a long-running class action, comprising a $13.0 million write-down of work in progress and disbursements.
The decision follows an unexpected interlocutory judgment. For investors, the key mitigant is immediate: the write-down has no impact on cash flow in the year.
Announced on 21 August 2026, the charge will land in the company’s upcoming financial statements, with full FY26 results scheduled for release on 28 August 2026.
When big ASX news breaks, our subscribers know first
What the write-down means for FY26 earnings
The write-down will be recognised in Shine’s financial statements for FY26. It will decrease profit for the year and net assets, but carries no cash flow impact in the year.
Despite absorbing the charge, reported earnings still grew year-on-year. Shine’s unaudited earnings before interest, tax, depreciation and amortisation (EBITDA) for FY26, after including the $13.0 million write-down, will be $31.7 million, up on FY25’s $29.7 million.
| Metric | FY26 (after write-down) | FY26 (excluding write-down) | FY25 |
|---|---|---|---|
| Unaudited EBITDA | $31.7M | $44.7M | $29.7M |
| Class action write-down applied | $13.0M | Nil | – |
Even after the charge, FY26 EBITDA of $31.7 million sits above the prior year. Excluding the write-down, unaudited EBITDA would have reached $44.7 million.
The FY26 EBITDA growth sits within a broader recovery trajectory for the firm: Shine’s H1 FY26 profit turnaround saw the company swing from a $1.7 million loss to a $6.7 million profit in the first half, supported by 8% revenue growth and improved operating margins.
Why Shine is standing behind the underlying claim
The company has been careful to frame the charge as an accounting decision rather than a change of position on the case itself. Shine considers it appropriate to apply a conservative accounting assessment of recoverability in accordance with applicable accounting standards.
That assessment does not reflect a change in management’s belief regarding the underlying merits of the claim. Shine is considering an immediate appeal and other available remedies, and states it remains committed to protecting the interests of claimants.
Should the appeal process or related proceedings result in a favourable outcome, the write-down will be reassessed in accordance with applicable accounting standards.
Understanding class action accounting
The write-down has no impact on cash flow in the year. Because this is a non-cash accounting adjustment rather than a cash outflow, the reported profit reduction does not drain the company’s cash position. Should a favourable appeal outcome occur, the written-down value may be reassessed in future periods in accordance with applicable accounting standards.
What investors should watch next
The immediate catalyst is the release of full FY26 results on 28 August 2026, which will show the audited impact of the charge on reported profit and net assets.
Over the medium term, the appeal is the key event to monitor. A favourable outcome from the appeal or related proceedings would open the door to a reassessment of the write-down under applicable accounting standards, though the company has not disclosed timing.
Key watch items include:
-
FY26 results release: 28 August 2026
-
Progress of the appeal and related proceedings (timing not disclosed)
-
Potential future reassessment of the write-down on a favourable outcome
The net picture is a material non-cash charge that Shine frames as conservative and potentially reversible, set against a backdrop of underlying EBITDA growth year-on-year.
Don’t Miss the Next Consumer Sector Move on ASX
Get FREE breaking ASX news delivered to your inbox within minutes of release, complete with in-depth analysis already done for you. Over 20,000 active subscribers rely on Big News Blast to stay ahead of market-moving announcements. Click the “Free Alerts” button to start receiving real-time coverage the moment news breaks.