Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

IPH focuses on fattening margins at newly acquired AJ Park

IPH focuses on fattening margins at newly acquired AJ Park

By Paul McBeth

Feb. 15 (BusinessDesk) - ASX-listed IPH wants to widen margins at recently acquired AJ Park, New Zealand's leading patent attorney firm, which contributed A$9 million in its first two months under new ownership.

Sydney-based IPH bought AJ Park last year for $66.1 million, of which $36.2 million was paid in cash and the balance in shares. The New Zealand firm contributed A$9 million of revenue and A$46,000 of profit to IPH between Nov. 1 and Dec. 31, IPH's first-half accounts show. Had the deal occurred on July 1, AJ Park would've contributed A$23.3 million of revenue and A$1.4 million of profit.

"We are very pleased to welcome New Zealand's leading patent attorney firm AJ Park to the IPH Group and they have traded to expectations since their acquisition," chief executive Andrew Blattman said in a statement. "We have begun working with management on initiatives for margin improvement. The group will receive a full six months contribution from this business in the second half."

The group reported an 11 percent decline in first-half profit to A$19.7 million, even as revenue rose 9 percent to A$101.2 million with the bottom line weighed down by a stronger Australian dollar causing an unrealised foreign exchange loss of A$3.1 million. The board declared an interim dividend of 11.5 Australian cents per share, payable on March 31.

The ASX-listed shares dropped 18 percent to A$4.195.

IPH was the first IP services firm to list on the ASX in 2014 and AJ Park became the first New Zealand firm to join a listed group after legislative restrictions were lifted in February last year.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Earlier this month the company said it will merge its Australian IP firms Fisher Adams Kelly Callinans, and Cullens with Asia-Pacific IP firm Spruson & Ferguson to operate under the Spruson & Ferguson brand. That integration will start in April and is expected to be completed early in the 2019 financial year.

Blattman today said IPH is evaluating acquisition and expansion options in the region, with its immediate focus the integration of AJ Park and ensuring the merger goes smoothly.

(BusinessDesk)

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.