This morning Shine Corporate Ltd (ASX:SHJ) reported its half-year results for the period ending December 31 2018. Below is a summary of the results with comparisons to the prior corresponding half year.
- Net profit after tax of $2.2m, compared to $7.8m
- Net profit excluding impairments $7.2m, down 7.9%
- Total revenue of $86.4m, compared to $88.2m
- EBITDAI of $19.6m, up 19%
- Earnings per share (EPS) of 1.28 cents, compared to 4.52 cents
- Underlying (pre impairment) EPS of 4.16 cents
- Dividends per share of 1.25 cents, up 25%
- Total debt of $50.8m
- Cash on hand of $13.6m
The Shine share price is down 6% to 63 cents in response to the news and is roughly flat over the past year. Shine like its listed tort law firm rival Slater & Gordon Limited (ASX: SGH) has pursued an acquisitive and organic growth strategy, although it has avoided the major mistakes Slater & Gordon fell into.
The Shine Group is forecasting a stronger second half based on seasonality among other factors, with expectations for a "modest increase" in EBITDA over fiscal 2018.
The firm has a market value of just $103 million after today's share price falls and on some conventional valuation metrics looks cheap.
However, investors should do their own homework before reaching a conclusion on this business and for full disclosure I'm not a buyer of shares.
