ASX-listed IPH Ltd (ASX: IPH) shares got hit hard today, falling 19%, following the release of its half year report.
IPH is an $810 million holding company that specialises in services for intellectual property rights holders. Established in 1887, IPH has a number of diverse operations locally and abroad, particularly in Asia.
This morning, IPH announced its half year financial results to the market, revealing:
- Revenue up 9% to $101 million
- Profit down 11% to $19.7 million
- A dividend of 11.5 cents per share, partially franked
IPH said adverse currency movements “dampened” the result.
CEO Andrew Blattman said, “the highlight of these results has been the return to growth (both in terms of our filings and like-for-like-earnings) of our Asian business post the America Invents Act (AIA) highs of FY16 and subsequent pullback in FY17.”
In Asia, Dr Blattman said like-for-like revenue grew 4%. Unfortunately, patent filings for IPH’s Australian business saw like-for-like revenue fall 5%.
“Pleasingly, the like for like EBITDA decline is only 2% reflecting our continued focus on margin enhancement,” Blattman said.
On an underlying basis, which makes some adjustments to the official result, IPH’s profit fell from $26.6 million to $24.3 million.
In spite of a lower-than-expected profit result, IPH remains focused on acquisitions and expansion opportunities throughout Asia.
“Our immediate focus will be the integration of the AJ Park acquisition and ensuring the success of the recently announced merger of Spruson & Ferguson (S&F), Cullens and Fisher Adams Kelly Callinans to trade under the S&F brand,” Dr Blattman added.
On Thursday, IPH Ltd shares were trading 19.5% lower at $4.12 according to Google Finance.
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