Hi Sabi, The appeal was mentioned in the analyst’s briefing call...

Hi Sabi,

The appeal was mentioned in the analyst’s briefing call that was held when the annual report was release d. The impression i had was that this would be next year. I wouldn’t be in any hurry for the resolution. At the earliest this would impact next year’s annual report, although it’s a bit of a grey area as to how material this will be. Note that WIP from this class action would already be included in the accounts. I am not sure if Shine will receive a percentage of the settlement in the way a litigation funder would. (I certainly hope so as it would be stupid for Shine to commit this much funding without financial compensation for the assumed risk and opportunity cost). This would all depend on the contract between Shine and the class members.

Regarding your three points:

1. It’s impossible to know for sure how accurate recorded WIP will be as it is speculative, however Shine has a reasonable track record post 2015 and was slammed in the market early 2016 for screwing this up. I would hope that this is still a fresh memory for management.

2. In regards to COVID-19 impacts, so far there has been little impact (which is not to say that there wont be any). As i mentioned in a prior thread I think there is potential for COVID to be a positive development for Shine in the long term.

3. Gov’t inquiry into Litigation funding - at worst this will be an indirect impact but this and regulatory risk in general will be an ongoing concern. This was discussed on the investor call and management seemed very cocky. Let’s hope their confidence is well placed. Any outcome of a government inquiry will be political as opposed either to logical or reasonable but, that said, I don’t think the sky will cave in for Shine regardless of the outcome.