Leading intellectual property (IP) professional services group, IPH Limited (ASX: IPH) is primarily involved in the provision of filing, prosecution, enforcement and management of patents, designs, trade marks and other IP in Australia, New Zealand, Asia and other countries.
Further, the company is also involved in the development and provision of IP data and analytics software under the subscription licence model whereby the software is licensed and paid for on a recurring basis.
The company is having a strong track record of successfully completing acquisitions with a high rate of retention of ex-vendor Principals.
Track Record of Acquisition (Source: Company Reports)
Earlier in May 2018, the company had announced an on-market Share Buyback of its ordinary shares of up to $40 million, reflecting confidence in the company’s future performance.
Today, the company has announced some changes with regards to the buy-back. Earlier, the company was intending to buy-back shares within 12 months in the period 23rd May 2018 to 22nd May 2019. However, now the buy-back period is extended for a period of 12 months commencing on 31 May 2019.
It is believed that the extension of share buy-back period is going to maintain flexibility in relation to capital management options
With regards to the buy- back, the company has announced that the number of shares for which the consideration paid or payable is up to $37,278,864.12 and the buy-back may cease earlier if the maximum number of securities is bought back prior to the period end date.
The Morgans Financial Limited will continue to act as a broker on the company’s behalf. Further, there are no changes in the number of shares for total buy-back consideration i.e., A$40,000,000.
The company’s IP services businesses in Australia, New Zealand and Asia, revenue is derived from fees charged for the provision of professional IP services by each firm as related to securing, enforcing and managing IP rights in the country (directly or through an agent) in which registration is sought by the client. The company’s business model allows it to generate recurring revenue streams throughout all stages of the IP lifecycle from its long-standing and diverse client base.
Besides this, the company’s data Services business generates revenue from the sale of its products directly or through a third party under a subscription licence model.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $7.180, up by 0.42% during the day’s trade with a market capitalisation of ~$1.41 billion as on 17 May 2019. The counter opened the day at $7.200 and reached the day’s high of $7.285 and touched a day’s low of $7.110 with a daily volume of ~528,775. The stock has provided a year till date return of 31.92% & also posted returns of 34.91%, 23.06% & 2.58% over the past six months, three & one-month period respectively. It had a 52-week high price of $4.430 and touched 52 weeks low of $4.125, with an average volume of ~1,104,102.
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