AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
IPH Ltd (ASX:IPH), a prominent global IP services group, has been placed on a trading halt today following significant updates that include its FY24 earnings report and the announcement of a major acquisition. The trading freeze was implemented before the market opened, with IPH shares currently suspended at AU$6.08 each, after experiencing a 1.1% increase over the past week.
FY24 Earnings Report Highlights
IPH Ltd's FY24 results reflect a year of substantial growth and strategic development. Below are the key metrics:
- IPH reported a 22.9% increase in revenue, reaching $609.9 million. This robust growth underscores the company's successful expansion strategies and operational efficiencies.
- Earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 15% to $195.5 million, demonstrating solid operational performance.
- Statutory net profit saw a decline of 5.7% year-over-year to $60.8 million. However, underlying net profit improved significantly, up 14% to $112.4 million. Underlying diluted earnings per share (EPS) also rose by 5.6% to 46 cents.
- The board declared a final dividend of 19 cents per share, an increase of 8.6% compared to the previous year.
Key Developments and Operational Highlights
The company's strong FY24 performance was bolstered by various factors:
- IPH's acquisition of Smart & Biggar in 2022 contributed to the positive results, reflecting the benefits of integrating this firm into its operations.
- The company experienced substantial growth in its Australian and New Zealand segments, as well as increased earnings from its Canadian operations. In particular, Canadian revenues were up by 10%, driven by the success of Smart & Biggar.
- IPH reported a 43% increase in cash flow from operations to AU$132 million, achieving a notable cash conversion ratio of 107%. The company used these proceeds to reduce debt by AU$70 million, resulting in a leverage ratio of 1.9 times.
Despite these positive outcomes, IPH's performance in Asia, particularly in Singapore, faced challenges. A slowdown in patent filings led to a decline in revenue in this region.
In addition to the earnings report, IPH confirmed its acquisition of Bereskin & Parr, a prominent Canadian IP firm. This strategic move is expected to enhance IPH's capabilities and market presence in North America.
As IPH Ltd navigates this period of significant developments, investors and market analysts will be keenly watching how the integration of Bereskin & Parr and the overall market reaction unfold. The trading halt remains in effect as the company prepares to provide further details on these transformative changes.
