Since it led the way onto the ASX amongst professional services IP firms in November 2014, IPH Limited has moved from one milestone to the next without mishaps. Unlike so many companies leading the way in their field, there have been no financial dramas in the form of disappointing acquisitions or debilitating debt.
In its relatively new journey on the ASX, IPH has consistently executed on its strategy and integrated its acquisitions according to its playbook. Along the way IPH has not been meek or mild in its ambitions. Its acquisitions have included its arch rival at the time, Xenith IP.
The current half year financial results show yet again IPH’s resilience and its ability to execute on its strategy. This was even more evident in the context of six months of Covid and a negatively impacting $A exchange rate.
Underlying revenue for the six months to 31 December 2020 was $179,794 compared to an almost identical $179,314 for the December 2019 half year.
The EBITDA percentage in the December 2020 half year was 34% compared to 34% for the December 2019 half year, i.e. the same revenue and the same profitability as the previous equivalent period. After net disbursements, EBITDA was 45% in the December 2020 half year and 47% for the December 2019 half year.
Key to its financial performance (as usual) is its ability to manage staff costs and staff productivity. Employee benefits expense was 45% of revenue (net of disbursements) in the December 2020 half year which was only about 1 percentage point ‘worse’ than the previous year’s equivalent period. Other expenses were also in line with the previous year with some savings in travel and finance expenses.