Many thanks, Carl. Good morning, and welcome to the IPH results presentation for the half year ended 31 December 2020. My name is Andrew Blatton. I'm the CEO of IPH, and with me today is John Wadley, our CFO. Thank you all for joining us for our presentation and for your continuing interest in IPH.
Before commencing the formal presentation, I would like to acknowledge and thank the IPH executive team and our Board for their support and of course, all of our people from across the group for their contribution during the first half of FY 2021. As we've outlined previously, we have experienced some disruption from COVID-nineteen and it's a testament to all our people across the group that we've delivered such a strong result in this environment. Moving to Slide 3, this is a table of contents what we will talk about. Today's presentation, I'll provide an overview of the operational highlights for the year. John will discuss the financial results in further detail before handing back to me to provide comments on our key markets in terms of filing activity and a review of our operations.
I will conclude with commentary about our strategic focus for the current year and beyond. And as always, we'll be very happy to answer questions at the end of the presentation. So moving to Slide 4. Let me start with a recap about our business. Hopefully, many of you will notice the new branding for the presentation, which incorporates the new corporate identity for IPH.
This new identity reflects the evolution of the IPH Group and its ambitions. We are the leading IP services group in Asia Pacific region with number 1 patent market position in Australia, New Zealand and Singapore and the number one trademark position in Australia and New Zealand. We operate 6 brands with over 900 employees working throughout 8 IP jurisdictions in Asia Pacific, servicing more than 25 countries across the region. We are very proud of our origins, but we're also excited about the future for the group and our new identity represents a strong opportunity that the IPH Group network presents. I'll talk more about our branding position later on in the presentation.
Moving on to Slides 56 on highlights. On Slide 6 particularly, we have delivered a solid result for the first half. In a challenging market, including a stronger Australian dollar in the first half and the ongoing impact of COVID-nineteen, we've delivered underlying earnings growth and increased returns to shareholders. Underlying EBITDA was up 2% to $61,700,000 while we continue to generate very strong cash flow with operating cash flow up 39%. This has enabled IPH to declare an interim dividend of $0.14 per share, 50 percent franked, which is up 4% on the prior corresponding half.
You've heard me say many times before that China and Hong Kong, particularly China represent key growth markets for the group, and I'm pleased to report significant patent filing growth in both markets for the half, with patent filings into our Beijing office increasing by 18.1% and patent filings into our Hong Kong office increasing by 23.2%. A core part of our strategy and has been from day 1 has been successfully acquiring and integrating companies to deliver margin accretion. We've always understood margin. You'll recall that the acquisition of Zenith IP in August 2019 was our largest acquisition since our listing in 2014, and it's very pleasing to see how the successful integration of Zenith is adding value to the group. What that successful integration of the Zenith Group of Companies has meant is reflected in delivery of $15,000,000 in underlying EBITDA for the half compared to the $19,700,000 Zenith delivered as a separate entity in its last full operating year.
More specifically, the former Zenith business delivered an EBITDA margin of 27% for the half, which is up 35% from FY 2020, a terrific achievement. Synergies are being delivered in line with our expectation and our strategy is increasing client referrals from acquired businesses to IPH units, but particularly into IPH Asia. Once again, you can see how we're improving on that measure with new patent and trademark client referrals into IPH's Asia business from our acquired companies. Of course, that's AJ Park and the Synth Group in particular, as I say, up 39% for the half. That's a strong endorsement of our acquisition strategy.
Of course, during this period, our business, like many others, continued to weather some disruption due to the ongoing global pandemic. In this half, we will again navigated operational challenges with the temporary closure of some IP offices in our small Toria. Pleasantly, our ability to mobilize a remote workforce underpinned by a robust COVID response plans has allowed us to maintain client services remotely and ensure the health and well-being of our people throughout this period. In summary, I'll say again, IPH has delivered a very solid result, particularly in the circumstances applying during the half. And I'll hand over to Jean to talk through the financial results in more detail.
Thank you, Andrew, and good morning, everyone. Our financial highlights reflect the group's performance in the COVID trading environment and must also be reviewed with an understanding of the foreign exchange impact. Dollar in the 6 months averaged $0.73 versus $0.685 in the comparative period. We have previously advised that a $0.01 weakening of the U. S.
Dollar caused a $1,900,000 reduction in service charge revenue. Further, the strengthening of the AUD versus the Singapore dollar has had the impact of reducing the profits of our Singapore business when reported in Australian dollars. Finally, the FX losses recorded in our P and L, I. E, those derived by banking receipts at a weaker rate than booked, are $1,500,000 greater than in the prior corresponding period. Both sides of this slide reflect these FX headwinds.
In addition, the left hand or statutory side reflects the increase in non cash amortization of intangibles, which results from our acquisitions. Pleasingly, we have shown growth in all of our underlying headline financial metrics against the prior comparative period. Unpacking the results, the main contributors have been an additional one and a half months of acquisitive growth from the Zenith IP business, two and a half months of acquisitive growth from the Ballrooms acquisition and margin expansion both the ANZ and Asian businesses. Particular feature of this has been a contribution from the former Zenith IP Group of $15,000,000 This has been achieved by the previously announced initiatives of corporate cost reduction, sale of the Glasshouse Advisory business and the merger of the Griffith Hack and Watermark businesses. Those factors have assisted to deliver a group underlying EBITDA of $61,700,000 up 2% on the prior comparative period.
Underlying NPAT has grown by 3% and the underlying diluted earnings per share has risen by 1% to $0.174 I also highlight the interim dividend of $0.14 per share. Dividend will be 50% franked and the $0.14 per share represents a 4% increase on the prior period. As the group has now utilized the franking credits obtained through the Zenith acquisition and received a tax refund in the current year, the franking level will likely revert to between 40% 60% on an ongoing basis. The DRP will operate for the interim dividend. Moving on to Slide 9 and
the like for like revenue and EBITDA.
The like for like basis eliminates the impact of acquisitions and more importantly in this period, the foreign exchange impacts I discussed earlier. On a group wide basis, revenue declined by 5%. However, EBITDA grew by 8% on a like for like basis. The new business column in the table moves from the half year results, the 1.5 month contribution of the Zenith business and 2.5 months from Boardman's. This is a representation of the corresponding period prior to IPH ownership and does not include additional contribution generated under our ownership.
Andrew will reflect further on the Zenith IP Group acquisition and integration in later slides. The next two columns to the right show the FX impact on both the balance sheet and the P and L. The currency adjustment column reflects the comparative disadvantage of the stronger Australian dollar throughout the first half twenty twenty one. Like for like revenue reduced by 5%, including as a result of the challenges of COVID-nineteen as well as the integration of Griffith Hack and Watermark in Australia. While inbound new filings have a long lead time, filers do have the ability to delay the decision to file right up to the filing date, as well as the ability to temper their spend by filing in fewer countries than might be the case in more certain economic circumstances.
Despite the revenue reduction, both regions have seen growth in EBITDA and then through the margin expansion activities previously outlined and Asia through increased filings in China, Hong Kong and Singapore, some of these through the expansion of the network effect, I. E. Those files referred from other IPH offices. Excluding the impact of foreign exchange from the revaluation of the U. S.
Dollar debt, the group has seen a net increase in corporate costs sorry, a net decrease in corporate costs of 1,100,000 dollars reflecting the benefit of the elimination of the Zenith IP Group corporate costs offset by investment in the IT function, increased D and O insurance costs and compensation to new executive positions added during FY 2020. Moving on to Slide 10, the underlying NPATs and EPS. Slide 10 shows the calculation of the underlying results, which is on a consistent basis with prior periods and reconciles these to the reported statutory half year twenty twenty one results. The main adjustments to the statutory results in the current period include acquisition costs related to completed and potential acquisitions, restructuring costs related to the post acquisition activities at the Zenith IP Group and Boardman's and the cost of equity based remuneration. Amortization of acquired intangibles has increased as a result of the 2 acquisitions mentioned.
On an annualized basis, this noncash expense will be $21,800,000 underlying effective tax rate is marginally lower at 26%, reflecting utilization of Zenith tax losses, leading to a subsequent refund, as I mentioned earlier. Moving to Slide 11 and the cash flow statement. Cash conversion was particularly strong. The improved metric is reflective of a collection of a large receivable related to a legal matter, a tax refund as well as consistent underlying collections. Strong cash flows allowed for the repayment of $32,700,000 in borrowings in the period, reducing leverage to 0.6 times net debt to EBITDA.
It also continues to support a high dividend payout, which is reflected in the payout ratio of the interim dividend, which is 85% of cash impact. Looking at the balance sheet on Slide 12. The main movements relate to movements in AUD valuations as a result of FX fluctuations and the acquisition of Volvins. Appletion of Volvins transaction resulted in the issue of $2,500,000 worth of shares And the acquisition accounting increased goodwill by $2,000,000 recognized intangible assets of $6,800,000 which related deferred tax balances. As mentioned, strong cash flows allowed for the repayment of $32,700,000
in debt.
Looking at the impact of foreign currency on Slide 13. Based upon the U. S. Dollar profile in the first half of twenty twenty one, a $0.01 movement in the AUD USD exchange rate equates to approximately $1,900,000 of revenue on an annualized basis. As USD costs are minimal, the majority of this reduction falls to the EBITDA line.
As mentioned previously, our first half results came through at an average of approximately $0.73 versus the comparative of 0.68.5 dollars The use of an average FX rate over the period actually understates this impact as our results are more heavily weighted to the Q2 when the U. S. Dollar was weaker. The AUD is also strengthened against the Singapore dollar, reducing the reported profits of the Asian business and Australian dollars. I'll now hand back to Andrew to take a closer look at the business.
Good. Thanks, John, very much for that. I'm moving to Slide 14, market overview and more specifically Slide 15, the scale of IPH. And most of you will have seen this slide before, so I won't dwell on it, but I think it's important to put the overall scale of our group filings into some context. Our patent and trademark filing activity extends beyond incoming filings into our local markets that are and those are primarily supply, what I would call, overseas applicants, particularly from those primary markets I talk about.
We also filed externally on behalf of what I call local clients, whether that be in Australia, New Zealand or Singapore. We do this all around the world either directly through IPH entities as per the referrals mentioned earlier or via external agents. And the IPH group is the largest filer of international PCT patent applications in Australia, which in turn have the potential to multiply as they generate their own family of applications around the world. And looking at the chart here, we've got the horizontal lines that show total patent market size of each of the Australian, Singapore and New Zealand markets, and the bar charts reflect IPH Group filings. Annualized aggregate IPH Group filings in all markets are more than the total combined markets of New Zealand and Singapore and indeed more than 3 quarters of the entire Australian market.
And why I say this scale is important as it mitigates the periodic fluctuations in filings in any individual market. Now moving to Slide 16, the Australian Patent Market, an update on that. As always, I'd make the point that IPH not a business that should be measured on the 6 month cycle. This is especially the case given the impact of COVID-nineteen during the half and of course, the integration of the Zenith businesses. Overall, the total Australian patent filings increased by 11% compared to the prior corresponding period.
However, this includes innovation patent filings, which are due to be phased out in August this year. The overwhelming proportion of the increase in innovation filings were from Chinese and Indian applicants. I think it's probably a last guess, but getting in before this is shut off in August. Innovation patents, however, do not constitute a large part of the IPH Group filings. Once these innovation filings are removed, total patent filings decreased by 0.5%, a decline of about 82 cases across the market on the prior corresponding period.
Now IPH has maintained our number one position with combined group market share, including Baldwin's on a pro form a basis of 36.8%. Again, that's excluding Uniper. However, the trend is pleasing because you'll recall from my AGM statement in November that we reflected an 8% decline at the 4 month period to 31 October and now we're sitting at 5.7%. So I think the direction is good going into the second half. We do not experience significant client losses during this period.
IPH has the local markets largest exposure to U. S.-based clients and as expected some of those clients filed less of the COVID-nineteen disruption with IPH filings originating from U. S. Clients down 1% for the period. As we've also outlined previously, the integration of Watermark in the Gruffyfe hack has caused some disruption in the Gruffyfe factory in the Harbin.
This is something we've seen before when we did similar integrations in Brisbane 2 or 3 years ago. Being largely Melbourne based, these businesses are also more significantly impacted by the extended lockdowns during the second half of the calendar year. As the businesses are now fully integrated, we expect greater stability going forward. Looking to Slide 17, moving to Singapore. We continue to be very well positioned in this market with the ongoing benefit of our network effect.
Preliminary data for CY 2020, calendar year 2020 indicates a market decline of 9% compared to CY 2019. And those of you who follow the story for a while will know we always talk about preliminary data in Singapore as there's quite a lag between when we look at it and it's not quite real time like it is in Australia. Moreover, in this case, it's very important to note that the Singapore market experienced very strong growth up to 31 December 2019, which reflected changes to the Singapore patent examination process, the closure of the so called foreign route from 1 January 2020. That resulted in an influx of applications in December 2019 seeking examination under the old system. With this in mind, looking at data for year to date November calendar year 2020 shows a total market increase of 3.3% compared to the corresponding period, market growing at 3.3%.
For the same period, IPH increased by 5.7%. So we're in good shape there, reflecting good organic growth. IPH market share increased from 22.5% in calendar year 2019 year to date November to 23% in calendar year 2020 year to date November. Notwithstanding the closure of this foreign roof and the impact of COVID-nineteen, IPH is holding by increasing its market share for the CY 2020 period, and we maintain our number one position in the market. Moving to Slide 18, the Asian picture.
We continue to leverage our network across the Asian region during the half. This is a key differentiator for the IPH group that provides scale and diversity across the region. As I've said earlier, one of the key highlights for the period is how we are successfully leveraging our network effect with an increase in client referrals from acquired companies to our IPH hubs, whether it be Singapore or Hong Kong. And total new patent and trademark case referrals were up 39% for the period, again demonstrating the success of our acquisition integration strategy. And as previously highlighted, we had significant patent filing growth in the key growth jurisdictions of China and Hong Kong, up 80% 23%, respectively.
Again, as many of you will recall from the last few presentations I've given, our filing activity for the half compares with a very strong prior comparable period, where one significant client filed across several jurisdictions with numbers I've never seen before. Removing the effect of this significant client filing activity on a like for like basis, we have seen total growth across these key jurisdictions of 5.3% in half year 'twenty one compared with half year 'twenty. Additionally, when we compare first half 'twenty one against first half 'nineteen, again removing the significant client activity, we have seen nearly 13 percent growth across the key Asian jurisdictions. I'm in good shape there. Slide 19, trademark market Australia.
While the overall trademark market in Australia increased by 20%, for the period of proportion of this growth was by 15% for the half. The increased trend towards self filers is illustrated by 30% increase in self filer trademark applications from first half financial year twenty twenty to first half financial year twenty twenty one. Despite some disruption in the Group of Fact business due to the impacts of integration and the Melbourne lockdown, IPH remains a leading Australian trademark group by market share of the top 50 agents with market share of 19.7%. Slide 20 is our trend slide. We've done this previously.
I think it's important to look at the current market and historical context. We have seen some disruption, but generally, our market is generally stable and the recurring nature of our work continues to provide a steady income stream for the group. Over the past 25 years, disruptions to Australian patent filing have been fairly minimal. The so called tech wreck in 2,002 GFC where the impact was felt in 2,009, 2010, there was a legislative change in the Raising the Bar Act in 2013, pulled work out of 2014. And of course, the American Events Act in 2013 that saw an influx in 2015 pulling work out of 2016.
At the moment, we're not seeing any discernible impact to those long term trends. As we've indicated previously, U. S. PCT applications are a reliable indicator of future patent filings in the markets we serve. And as you can see, these continue to be quite stable.
We are seeing strong growth in Chinese PCT applications, and China represents a significant opportunity for IPH in terms of both fines into and out of this jurisdiction. As you can see, there has been a significant upward trajectory with nearly 25 percent growth in China PCT applications over a 15 year period. Moving to operations, Slides 21, 22, and particularly, integration and synergy capture in STINT22. We've now successfully completed the integration of Cenith IP into the IPH Group. The major initiatives related to this over the past year were the integration of Watermark and the Griffon Hack to create one firm operating under the Griffon Hack brand and the divestment of the Glasshouse advisory business.
A major focus of our integration has been the removal of corporate costs, rightsizing the property footprint and staffing levels. The successful integration of Zenith has resulted in delivery of $15,000,000 in underlying EBITDA in the 6 month period. That compares to $19,700,000 in its last full operating year as a separate entity. Griffith Hack and Watermark are now operating as one fully integrated firm under Griffith Hack, and we've appointed a new Managing Director with a renewed leadership team in place. We remain on track to deliver $2,000,000 in synergies from the combined end of the FY 2021.
The merged entity traded at an EBITDA margin of 28% in the period. This compares to a combined margin of 18% while operating as 2 separate entities. This is a terrific outcome. In New Zealand, A. J.
Park completed the acquisition of Baldwin's on 16 October 2020. This acquisition has provided A. J. Park with expanded IP team and a greater depth of IP expertise across a number of areas. We completed full physical and system integration in December 2020, and that will lead to synergies in the areas of rental savings and rightsizing of the business.
We remain on track to deliver an expected contribution of between AUD 2,000,000 $2,500,000.38.5 month period to 30 June 2021. Slide 23. We continue to focus on attracting, motivating, developing and retaining our people across the group. A key element of the strategy is providing opportunities for continued career advancement, and we're pleased to be able to progress client facing promotions for people in key parts of our business during the half. For example, we have made 10 principal appointments so far in FY 2021 and more than 40 principal appointments made since we listed in November 2014.
We continue to invest in the future of the IP profession with 72 trainee attorneys across the group as of 31 December 2020. Now some of you may have seen recent commentary in IP media about staff departures in the Australian business. This is not unexpected and, of course, reflects that there will always be a natural turnover in the profession and also as a result of the integration process as we rightsize the business to generate operational synergies. Across the group, our voluntary staff turnover for all staff during the half was 8% of the total headcount. This is well below industry averages for professional service firms.
And when we narrow this to voluntary attrition amongst IP professional staff to within the IP industry, this figure drops to 3%, a significant improvement compared to our previously reported figure for those of you who follow us for a while in FY twenty eighteen rather of 10%. This improvement reflects the significant efforts we are making across the group as part of our people strategy, including a centralized people team now in place across Asia Pacific. We are particularly focused on investing in our people to ensure that we have taken our talent rather to continue to deliver great outcomes for our clients. We're also implementing a number of initiatives across the business to make IPH the employer of choice. And I'm very pleased with the progress we're making in this regard.
We're also delighted to welcome Francis Gurry as a strategic advisor to IPH last October. Francis is one of the world's leading authorities in intellectual property matters, having served as Director General of the World Intellectual Property Organization for 12 years until September last year. We will be able to draw upon France's unparalleled knowledge, insights and experience in global IP matters for the benefit of our clients and our IP professionals across the group. Looking ahead on Slides 2425, particularly 25, a new brand. It's a good thing for us.
So as I mentioned earlier, we've launched a new brand and reflects the evolving nature of our business. Since our listing in 2014, we've undergone a period of rapid growth and change. Now we have the largest portfolio of IP service firms in the region. So it's appropriate that our new corporate identity represents this evolution in growth and focus on creating value for our shareholders by enabling individual firms to work smarter, to enable growth opportunities for our people and allow clients to secure IP protection seamlessly across the Asia Pacific region. And we call it the network effect.
And as you can see in these results, it works. Our new brand is a cornerstone for our renewed focus, and we hope in time it will come to represent the standard of quality in IP services globally. Slide 26. Leveraging this network effect is particularly important in the context of how we seek to achieve organic growth. But our network effect is more than simply referring clients.
It's about leveraging the combined power of our member firms, finding smart and more efficient ways to operate and building greater capability enhancing performance. We reviewed our marketing and business development activity to identify group opportunities for improvement across the group. We have commenced the recruitment of a Chief Commercial Officer to support organic growth and to leverage the combined power of the IPH network. So looking ahead, let me conclude with some final comments about our progress and outlook. After a somewhat challenging period, IPH is emerging as a stronger group ready to further leverage our network.
We have demonstrated our ability to achieve business improvement from acquisitions and the rightsizing of our acquired businesses has created a more efficient operating model. This provides the group with increased operational leverage down the P and L to further enhance margins as markets stabilize and recover. We maintain a very solid financial position with low gearing and strong cash generation. With respect to our WiseTime software business, which many of you recall is in the autonomous timekeeping space, we have seen strong sales growth over the half, and we're aiming to continue to build this momentum as we go forward into the full year. Finally, we continue to progress growth opportunities in core secondary IP markets, notwithstanding the limitations of COVID.
So this concludes the results presentation. I would like to acknowledge the hard work and contribution of all our people across the group. Many thanks to all of you for your continued support and interest and over to our moderator and of course, as always happy to take some questions.
Thank Our first question today will come from Michael Peat with Goldman Sachs. Please go ahead.
Hi, Andrew and John. Thanks for taking my question. Just on the market share in Australia, obviously, down a little bit, 38.1 to 30 6.8 on the slide there. And looking at Slide 20, I mean, it's pretty obvious, obviously, the growth in China that's been pretty sustained for a long time. Do you think the case is sort of your you've mentioned the U.
S. Exposure there to clients coming in U. S. Clients inbound. Is this a case of sort of old world to new world?
And if so, what do you need to do? Or are you thinking how you're thinking about sort of maybe capturing some of that China inbounds, if any? I mean, I know you've talked about how problematic they could be potentially, some of them, but with payments or whatever. But just interested in your thoughts on that shift that looks to be occurring.
Thanks, Michael. That's an interesting observation. And I think we are capturing some of that outgoing Chinese domestic work coming into international markets as in a number of ways, not only in Australia, but internationally for us in the Asia Pacific region. That client I was referring to before is a Chinese domestic, although it does come to us out of a primary market instructions. So we're capturing that in the context of the Asia Pacific.
We're also capturing it in Australia now and that one of our business units, Axcor, the largest patent filer in Australia at present, which is also a Chinese applicant. So we are seeing that movement and we think we're well placed in that. What we are, I guess, as part of that market share movement, a couple of things. The U. S.
Exposure is 1, but and the integration is also part of it. And this is what we saw before when we integrated the old Cullens at FAK C to Spruesen's in July 2018, there are some clients that don't make the transition and that's part of the improvement in margin to be frank. And we're seeing the same thing in the integration of Watermark and the Group of HAC. That margin improvement is my view fantastic. But sometimes it comes at a cost of market share if you can't monetize a client.
So we are happy to let that go to drive the margin.
Right. Thank you.
And our next question will come from Callum Sinclair with Macquarie. Please go ahead.
Hi, guys. Maybe just a follow-up to that. Just with the management changes, particularly with the pack, just renewal and if you expect to improve the underlying performance in the second half post that change and maybe the impact that we saw in the first half, just the difference between the disruption on the Giff attack versus the Melbourne exposures?
Yes. Look, I think, Calum, it's a good observation. I would say at the very outset, I'm very happy with where Griffevac is. I'm very happy with the position of Griffevac, and then I think we're primed for growth there. We did have disruption in the integration of Watermark and the Greif and no question, we had to we did it in the middle of a global pandemic.
We had to even do it virtually in it wasn't completed until early June. And it really we only ever had 25% until just recently, what goes up and down, as we all know, in the office in Melbourne. So it has been a challenge. And with that as well, the group of HAC Business was probably more exposed to local domestic clients in their client base than any of our business units. So which of course is a Victorian client based problem, predominantly not all that, but there is also offices in Western Australia and Sydney and Brisbane.
But the larger proportion of it is in Melbourne, which has had their own challenges for that domestic client base. So I like where it is. The new leadership is good. We've got the margin hitting in the right direction. The combined firm has got to move from that 18% margin operating by just combining the margins of the 2 single businesses.
We now have a combined margin 28%. So it's hitting very much in the right direction. The EBITDA underlying of that Synov business to go from $15,000,000 or $19,700,000 for the year and we've done $15,000,000 for the 6 months. I mean, it's a terrific run rate. So I think it's absolutely prime for
growth. Thanks. Can I just sneak one additional question in on the same topic just around client behavior and if you can give examples of where clients may have delayed or saved cost during the period and if that sort of represents catch up or pent up volume, whatever you want to refer to it as in calendar year 2021?
Yes. So It doesn't really run like that in patents and that for international clients, in fact, everything in patents runs on dates. And you can't really use financial considerations to delay your the national phase entry date to file into Australia for as an overseas applicant coming into Australia. So in some ways, that's passed. Although you can delay your instructions until closer to the deadline date and scenarios like that.
So we do see a bit of that. Domestically, we'd probably see scenarios where people may just hold off on following that first application or preparing the patent specification or filing the trademark, whatever the case may be. But really the show goes on in patents and that's what generates that recurring nature of our revenue.
Thanks. I better jump back in the queue. Thanks guys.
Okay.
And our next question will come from Sam Haddad with Bell Potter. Please go ahead.
Hi, John. Hi, Andrew. Congratulations on the resilient result and particularly the margin uplift in XRP.
Thanks, Sam. Nice to hear from you.
Yes. Just I'll probably ask the obvious question. And an update on acquisition prospects in new secondary markets and
discussions there and I knew someone will have to ask that question. And I've got my General Counsel here telling me to calm down. But no, we're in good shape, Sam. And it's not as easy as it might have been in when you can get around on an airplane, but I can tell you I'm pretty good on the team's calls now. So we like where we're going there and you'll be the first to know.
Okay. So you can you're happy to complete on acquisitions regarding international flight?
Yes. We know these opportunities very well, Sam. We've known some of these firms have shared heritage with the Spruce and the Ferguson and Group of Hanks of the world for 50, 60, 70 plus years. We know these businesses well. And so we're very confident about our ability to execute.
And you'll recall that we did one in the middle of all this pandemonium. Baldwins was executed in the middle of COVID-nineteen. So we can do it because we know the businesses.
Excellent. Thanks for that.
And our next question will come from Michael Peete with Goldman Sachs. Please go ahead.
Yes. Thanks, Andrew. Just a follow-up. Obviously, a big turnaround there and by the end of this first half in the filing numbers, minus 8 at AGM, minus 5 by the end of the half. So just interested in any color you can provide to has that momentum continued into the second half?
Look, January is always a funny old month in this business, but we have not seen any significant decline in where that direction is heading. I'm very happy with the direction that we're seeing. And as I say, we're uniquely placed now. Pruvafac in the right space. We're primed to really grab hold of any of that top line growth that we can get out with the filing improvements.
So I'm quietly confident we're heading in the right direction there.
Great. Thank you.
And there are no further questions at this time. I'd like to hand the conference back over to Doctor. Blattman for any closing remarks.
Well, thanks, Colin. I think I'm pretty much about to expire, so we've done pretty well here. Thank you, as always, for your interest, everyone, and your support of IPH. It's been a challenging half, but I'm very proud of what we've achieved in getting to where we've got to. And as I say, I think we're primed to go forward.
Thanks very much.
And that does conclude our conference for today. Thank you for your participation. And at this time, you may now disconnect.