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IPH acquires Canadian IP firm, releases FY22 results
IPH has released its latest financial results and maintained its continued growth strategy after acquiring a Canadian IP firm for $387 million.
Lauren Croft
IPH has revealed that its firm-wide revenue is up 6 per cent (11 per cent EBITDA) for the year ending 30 June 2022 to $385.1 million, with a $52.6 million net profit.
The firm’s underlying EBITDA (earnings before interest, taxes, depreciation, and amortisation) has increased to $137.4 million — up by 11 per cent on the financial year 2021 results of $124.3 million EBITDA. In a statement, the firm said that the underlying earnings were assisted by organic growth, as well as a currency benefit as a result of the US dollar being stronger than last year.
The news follows the release of the financial year 2022 results from Clyde & Co, who revealed their Australian offices are bringing in the most revenue; Ashurst, which saw a 12 per cent revenue increase; Clifford Chance, which saw equity partner profits rise by 10 per cent; Herbert Smith Freehills, which recorded close to $2 billion in revenue; and Pinsent Masons, which saw a PEP increase of 16 per cent.
IPH’s financial position and ongoing cash generation enabled a 3 per cent increase in the final dividend to 16¢ per share, bringing the full-year dividend to 30.5¢ per share, compared to 29.5¢ per share for the prior year — something that IPH chief executive Dr Andrew Blattman said was a result of the firm’s strong network in the Asia-Pacific region.
“IPH continues to leverage its leading network across Asia Pacific to deliver a strong financial result. Since listing we have successfully demonstrated how our strategy to combine organic growth with the acquisition and integration of businesses delivers earnings accretion for the wider group,” he said.
“Our FY22 result reflects the continuation of that strategy with our Asian business once again delivering double-digit revenue and earnings growth on a like-for-like basis.”
In a move to extend IPH’s international network beyond the Asia-Pacific region, Smart & Biggar has become the first Canadian IP firm to join a publicly listed group. Smart & Biggar partners will continue within the business as principals as part of the ASX transaction — and managing partner Matthew Zischka said the team was excited to join the likes of IPH.
“Joining the IPH group will supercharge our service offering and enable future investment in our Canadian business,” he said.
“We look forward to continuing to help clients in Canada and around the world safeguard and leverage their IP and technological assets.”
Dr Blattman added that “Smart & Biggar employees are of the highest quality and the firm has an outstanding international reputation”.
“The Australian and Canadian IP markets are very similar, and together the combined group will be well positioned to provide our clients with a comprehensive IP service offering with an international reach in key secondary markets, while offering strong career development opportunities for our people,” he said.
“This is a significant strategic transaction that extends IPH’s international network beyond Asia Pacific and into an additional significant secondary market. We look forward to welcoming Smart & Biggar’s employees and clients to the group.”
There are also a number of other acquisitions and integrations to attribute to IPH’s strong FY22 results, Dr Blattman added.
“We continued to harness the breadth of our network which resulted in an increase in case referrals of 4.5 per cent across the group to drive organic growth. The integration of Spruson & Ferguson Australia and Shelston IP is delivering synergies as planned and following some short-term disruption is well placed to grow its position as a leading IP firm in this market,” he said.
“The acquisition and integration of Applied Marks has enabled the creation of our Digital Services function which is focused on harnessing digital expertise and software tools to generate growth and efficiencies for our teams and clients in each of the regions in which we operate. Together, these initiatives have further strengthened IPH as the leading IP services group in the Asia Pacific region.”
Lauren Croft
Lauren is a journalist at Lawyers Weekly and graduated with a Bachelor of Journalism from Macleay College. Prior to joining Lawyers Weekly, she worked as a trade journalist for media and travel industry publications and Travel Weekly. Originally born in England, Lauren enjoys trying new bars and restaurants, attending music festivals and travelling. She is also a keen snowboarder and pre-pandemic, spent a season living in a French ski resort.
