Slater and Gordon

Australia’s longest-running listed law firm reported a net profit after tax (NPAT) of $3.1 million and EBITDA before specified items of $18.8 million. The latter is up from 15.3 million in the prior corresponding period. 

Meanwhile, revenue increased to $99.3 million, up from $89.2 million in the prior corresponding period. An improved net asset position of $167.8 million was also posted, up from $162.3 million in the six months to 30 June 2020, which it said, comes down to “growth in WIP, a reduction in cash and receivables, and lower borrowing and lease liabilities”. 

One area that did see a dip was the firm’s operating cash flow generated from continuing operations (OCGCO). For the six months to December 2020, Slater and Gordon recorded OCGCO of $6.1 million, down from the $7 million recorded in the prior corresponding period. 

This, it said, was largely due to higher payments to suppliers and employees offset by higher receipts from customers and lower borrowing costs.

Commenting off the back of the results, Slater and Gordon recognised a number of factors as leading to its growth over the past six months.

Some of the highlights listed included a 16 per cent growth in inquiries, with a 6 per cent rise in active files over the half-year; a delivery of approximately $360 million in compensation to “everyday Australians”; and “a continued focus on the firm’s ethos of social justice, including delivery, on a pro bono basis, of compensation for more than 1,300 asylum seekers whose personal information was leaked online”.

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“The investment that we are making in our business, in innovation and in our people is delivering the growth evident in our results,” added Slater and Gordon chair James MacKenzie in the firm’s presentation to investors.

“Pleasingly, despite the challenges of COVID-19, we have continued to progress matters on behalf of the thousands of Australians who need our help to access justice.

“I particularly want to thank our people, whose care, dedication and commitment to our clients and our values are core to our success and to ensuring our clients’ tomorrow starts today.

“We are especially pleased that we were able to achieve the results that we have reported today without Jobkeeper support.”

Qantm Intellectual Property Ltd

Despite being in the midst of a transformation period coupled with the COVID-19 pandemic, QANTM Intellectual Property Ltd (QANTM) reported mostly positive earnings for its half-year presentation.

The intellectual property group reported total net revenue of $48.3 million, marking a 3.6 per cent increase from the prior corresponding period. Total operating expenses sat at $33.8 million, up 2.4 per cent, while EBITDA before FX increased to $14.5 million, up 6.6 per cent on the prior corresponding period. 

The group noted its EBITDA, after an adverse FX movement of $1.0 million, was $13.5 million, which represented a 2.2 per cent decline.

Meanwhile, operating cash flow increased by 61.4 per cent to $9.2 million, however underlying net profit after tax (NPAT) was $6.5 million, down 1.5 per cent.

Looking at QANTM’s Australian operations over the past six months, the half-year presentation noted the group’s continued focus on the local market.

“QANTM’s Group patent applications (excluding innovation patents) decreased by 1.6 per cent in the first half of 2021, compared with the prior corresponding period, but increased 8.7 per cent on 2H20,” it said.

“Group Australian patent applications (including Cotters but excluding innovation patents) were at the same level as the prior corresponding half year, which itself represented a five year high in the level of QANTM’s patent applications, but increased 6.0 per cent on 2H20.

“... Australian patent applications represent 58 per cent of the Group total. The stability in QANTM’s Australian patent applications is in the context of an overall decline in total Australian market patent applications (excluding innovation patents) of 0.6 per cent.”

Commenting further on the results, Craig Dower, QANTM’s chief executive and managing director, said: “QANTM’s half year results are a highly encouraging start to the financial year, especially in the context of a challenging and unpredictable business environment. The results reinforce that the QANTM business model is highly resilient, with a diverse and stable client base, across a broad range of sectors, industries and geographies, and a continued reputation for high-quality service.

“During the half, the QANTM portfolio has delivered growth in revenue across all three main service offerings – patents, trade marks and legal/litigation – as well as higher operating cash flow and cash conversion.

“Despite almost a year of remote working arrangements, business activities have continued – in almost all cases – at or above pre-COVID levels, even in the substantial Melbourne offices of DCC and FPA, which spent most of the half in degrees of lockdown. Our people, across all parts of the business, maintained their commitment to high levels of client service.”

IPH Limited and AF Legal Group have also released their half-year financial results. The pair were followed soon after by Shine Corporate.