Announcement • Aug 21
Adamantem Capital completed the acquisition of QANTM Intellectual Property Limited (ASX:QIP). Adamantem Capital made an offer to acquire QANTM Intellectual Property Limited (ASX:QIP) for approximately AUD 250 million on March 12, 2024. Adamantem will acquire all the shares in QANTM for AUD 1.817 per share. The Adamantem Indicative Proposal is all cash with a scrip election of up to 50%. The Adamantem Indicative Proposal is subject to a number of conditions, including completion of satisfactory due diligence, and negotiation and execution of transaction documentation, as well as other customary conditions. As of August 2, 2024 Supreme Court of New South Wales approved the transaction. MA Moelis Australia Advisory Pty Ltd acted as financial adviser and Gilbert + Tobin acted as legal adviser to QANTM Intellectual Property Limited. Computershare Investor Services Pty Limited for acting as the QANTM Share Registry and Grant Thornton Australia Limited for acting as Independent Expert to QANTM Intellectual Property Limited.
Adamantem Capital completed the acquisition of QANTM Intellectual Property Limited (ASX:QIP) on August 19, 2024. New Risk • Aug 06
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.6% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (99% payout ratio). Shareholders have been diluted in the past year (3.6% increase in shares outstanding). Announcement • Jul 31
QANTM Intellectual Property Limited Announces Fully Franked Special Dividend, Payable on 16 August 2024 QANTM Intellectual Property Limited announced that QANTM Directors have determined to pay, conditional on the Scheme becoming Effective, a fully franked special dividend of $0.071 for each QANTM Share held by a QANTM Shareholder as at the Special Dividend Record Date of 6 August 2024 (Special Dividend). Special Dividend Payment Date: 16 August 2024. Upcoming Dividend • Jul 29
Upcoming dividend of AU$0.071 per share Eligible shareholders must have bought the stock before 05 August 2024. Payment date: 16 August 2024. Payout ratio is on the higher end at 99%, however this is supported by cash flows. Trailing yield: 3.5%. Lower than top quartile of Australian dividend payers (6.2%). In line with average of industry peers (3.5%). Price Target Changed • Jun 14
Price target increased by 8.5% to AU$1.79 Up from AU$1.65, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of AU$1.81. The company is forecast to post earnings per share of AU$0.078 for next year compared to AU$0.057 last year. Announcement • May 10
IPH Limited (ASX:IPH) entered into non-binding indicative proposal to acquire QANTM Intellectual Property Limited (ASX:QIP) for AUD 250 million. IPH Limited (ASX:IPH) entered into non-binding indicative proposal to acquire QANTM Intellectual Property Limited (ASX:QIP) for AUD 250 million on May 7, 2024. IPH will acquire QANTM for 0.291 IPH shares for each QANTM share held and a special dividend of $0.11 cash for each QANTM share held subject to the assumptions and conditions outlined in this letter. The deal is subject to consummation of due diligence, approval from board of directors of IPH and QANTM, and Australian Competition and Consumer Commission, and New Zealand Commerce Commission. Agreement is expected to be signed by late May/Mid June, 2024, and the deal is expected to be completed by Q3/Q4, 2024. Macquarie Capital acted as financial advisor, and Bird & bird and webb Henderson acted as legal advisor to IPH. Announcement • Mar 13
Adamantem Capital made an offer to acquire QANTM Intellectual Property Limited (ASX:QIP) for approximately AUD 250 million. Adamantem Capital made an offer to acquire QANTM Intellectual Property Limited (ASX:QIP) for approximately AUD 250 million on March 12, 2024. Adamantem will acquire all the shares in QANTM for AUD 1.817 per share. The Adamantem Indicative Proposal is all cash with a scrip election of up to 50%. The Adamantem Indicative Proposal is subject to a number of conditions, including completion of satisfactory due diligence, and negotiation and execution of transaction documentation, as well as other customary conditions. MA Moelis Australia acted as financial adviser and Gilbert + Tobin acted as legal adviser to QANTM Intellectual Property Limited. Valuation Update With 7 Day Price Move • Mar 01
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to AU$1.35, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 17x in the Professional Services industry in Australia. Total returns to shareholders of 54% over the past three years. Announcement • Feb 27
Rouse & Co. International LLP made an offer to acquire QANTM Intellectual Property Limited (ASX:QIP). Rouse & Co. International LLP made an offer to acquire QANTM Intellectual Property Limited (ASX:QIP) on February 27, 2024. The transaction is subject to a number of conditions, including completion of satisfactory due diligence, and negotiation and execution of transaction documentation. Gilbert and Tobin acted as legal and Moelis Australia Securities Pty Ltd. acted as financial advisor to QANTM Intellectual Property Limited. Major Estimate Revision • Feb 26
Consensus EPS estimates increase by 23% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from AU$142.4m to AU$146.1m. EPS estimate increased from AU$0.081 to AU$0.10 per share. Net income forecast to grow 33% next year vs 19% growth forecast for Professional Services industry in Australia. Consensus price target up from AU$1.65 to AU$1.79. Share price rose 6.0% to AU$1.15 over the past week. Price Target Changed • Feb 23
Price target increased by 8.5% to AU$1.79 Up from AU$1.65, the current price target is provided by 1 analyst. New target price is 56% above last closing price of AU$1.15. Stock is up 22% over the past year. The company is forecast to post earnings per share of AU$0.10 for next year compared to AU$0.057 last year. New Risk • Feb 22
New major risk - Revenue and earnings growth Earnings have declined by 6.0% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 6.0% per year over the past 5 years. Minor Risk Dividend is not well covered by earnings (99% payout ratio). Declared Dividend • Feb 21
First half dividend of AU$0.049 announced Shareholders will receive a dividend of AU$0.049. Ex-date: 23rd February 2024 Payment date: 3rd April 2024 Dividend yield will be 7.1%, which is higher than the industry average of 3.8%. Sustainability & Growth Dividend is not adequately covered by earnings (99% earnings payout ratio). However, it is well covered by cash flows (38% cash payout ratio). The dividend has decreased over the past 76 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 9.7% to bring the payout ratio under control. EPS is expected to grow by 67% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Feb 20
First half 2024 earnings released: EPS: AU$0.053 (vs AU$0.025 in 1H 2023) First half 2024 results: EPS: AU$0.053 (up from AU$0.025 in 1H 2023). Revenue: AU$74.2m (up 8.1% from 1H 2023). Net income: AU$7.37m (up 117% from 1H 2023). Profit margin: 9.9% (up from 4.9% in 1H 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 1.2% growth forecast for the Professional Services industry in Australia. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jan 23
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to AU$1.09, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 17x in the Professional Services industry in Australia. Total returns to shareholders of 19% over the past three years. Recent Insider Transactions • Sep 23
Independent Non-Executive Director recently bought AU$61k worth of stock On the 22nd of September, Kathryn Gramp bought around 64k shares on-market at roughly AU$0.96 per share. This trade did not impact their existing holding. In the last 3 months, there was an even bigger purchase from another insider worth AU$101k. Insiders have collectively bought AU$261k more in shares than they have sold in the last 12 months. Recent Insider Transactions • Sep 08
Independent Non-Executive Chairman recently bought AU$101k worth of stock On the 5th of September, Sonia Petering bought around 102k shares on-market at roughly AU$1.00 per share. This transaction increased Sonia's direct individual holding by 2x at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Sonia's only on-market trade for the last 12 months. Announcement • Aug 24
QANTM Intellectual Property Limited Approves Final Dividend, Payable on 4 October 2023 The Directors of QANTM Intellectual Property Limited have approved a final dividend of 3.5 cents per share, fully franked, with a payment date of4 October 2023 for shareholders registered as at 4 September 2023. Reported Earnings • Aug 24
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: AU$0.057 (up from AU$0.053 in FY 2022). Revenue: AU$137.0m (up 7.6% from FY 2022). Net income: AU$7.86m (up 7.9% from FY 2022). Profit margin: 5.7% (in line with FY 2022). Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) missed analyst estimates by 4.4%. Revenue is forecast to grow 3.0% p.a. on average during the next 2 years, compared to a 4.7% growth forecast for the Professional Services industry in Australia. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Reported Earnings • Feb 24
First half 2023 earnings released: EPS: AU$0.025 (vs AU$0.025 in 1H 2022) First half 2023 results: EPS: AU$0.025 (in line with 1H 2022). Revenue: AU$68.6m (up 9.5% from 1H 2022). Net income: AU$3.40m (flat on 1H 2022). Profit margin: 4.9% (down from 5.4% in 1H 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Buying Opportunity • Feb 22
Now 20% undervalued Over the last 90 days, the stock is up 1.6%. The fair value is estimated to be AU$1.18, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.9% over the last 3 years. Earnings per share has declined by 13%. Buying Opportunity • Feb 06
Now 20% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be AU$1.17, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.9% over the last 3 years. Earnings per share has declined by 13%. Buying Opportunity • Jan 13
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 7.0%. The fair value is estimated to be AU$1.16, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.9% over the last 3 years. Earnings per share has declined by 13%. Board Change • Nov 16
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. Independent Non-Executive Chairman Sonia Petering is the most experienced director on the board, commencing their role in 2016. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model. Announcement • Oct 07
QANTM Intellectual Property Limited Announces Change of Company Secretary QANTM Intellectual Property Limited (QANTM) announced the appointment of Krista Stewart as Company Secretary, effective 7 October 2022. Krista has previously held a number of senior legal and M&A roles with Orica Limited, most recently as Head of M&A and as General Counsel - Corporate. This appointment follows the resignation of Nick Ward as Company Secretary, which will take effect 7 October 2022. Reported Earnings • Aug 31
Full year 2022 earnings released: EPS: AU$0.053 (vs AU$0.077 in FY 2021) Full year 2022 results: EPS: AU$0.053 (down from AU$0.077 in FY 2021). Revenue: AU$127.3m (up 6.9% from FY 2021). Net income: AU$7.28m (down 30% from FY 2021). Profit margin: 5.7% (down from 8.8% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • Aug 30
QANTM Intellectual Property Limited Announces Dividend for the Six Months Ended June 30, 2022, Payable on October 6, 2022 QANTM Intellectual Property Limited announced dividend for the six months ended June 30, 2022. FOr the six months, the company announced dividend of AUD 0.03500000 with Record Date of 6 September, 2022; Ex Date of 5 September, 2022 and Payment Date of 6 October, 2022. Board Change • Jun 01
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. Independent Non-Executive Chairman Sonia Petering is the most experienced director on the board, commencing their role in 2016. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model. Announcement • Jun 01
QANTM Intellectual Property Limited Announces the Appointment of Brenton Lockhart as Chief Financial Officer QANTM Intellectual Property Ltd. announced the appointment of Brenton Lockhart as Chief Financial Officer, effective May 31, 2022. Brenton is a Chartered Accountant and has been a senior executive within the QANTM Group for the past four years, serving as Head of Finance for the FPA Patent Attorneys business since September 2019, and as Head of M&A for QANTM since February 2022. Brenton previously held senior roles at Kearney Group and Crowe Horwath Australia (now Findex). Brenton is a Member of the Australian Institute of Company Directors and holds a Bachelor of Business and Commerce from Monash University. Announcement • May 25
QANTM Intellectual Property Limited Announces Executive Changes QANTM Intellectual Property Limited (QANTM) announced that, effective 24 May 2022, Sonia Petering will be the new Chair of the QANTM Board, with Richard England retiring from the QANTM Board with effect from 24 May 2022. Sonia has been a member of the QANTM Board since its listing on the Australian Securities Exchange as a public company in 2016, is the current Chair of the Audit, Risk and Compliance Committee and has also served on the People, Remuneration and Culture Committee. She is an experienced lawyer and non-executive director and Chair of ASX-listed and unlisted companies and government authorities across various sectors covering financial services, payments, insurance and healthcare, including serving as the current Chair of Virtus Health Ltd. Kathy Gramp will replace Sonia as Chair of the Audit, Risk and Compliance Committee. Richard was appointed in May 2016 as the inaugural Chair of the QANTM Board, and has served as Chair since his appointment, and also as a member of the Audit, Risk and Compliance Committee and the People, Remuneration and Culture Committee at various times through his six-year tenure. Announcement • May 12
QANTM Intellectual Property Limited Appoints Kathy Gramp as Independent Non-Executive Director QANTM Intellectual Property Limited announced the appointment of Kathy Gramp to the QANTM Board as an independent non-executive director. Kathy will join the Board with effect from 11 May 2022, and will stand for election by shareholders at QANTM's next Annual General Meeting, which will be held in November 2022. She is currently a non-executive director of two other ASX-listedcompanies - Codan Ltd. and Uniti Group Ltd. Reported Earnings • Feb 27
First half 2022 earnings: EPS in line with analyst expectations despite revenue beat First half 2022 results: EPS: AU$0.025 (down from AU$0.044 in 1H 2021). Revenue: AU$62.7m (up 7.1% from 1H 2021). Net income: AU$3.41m (down 43% from 1H 2021). Profit margin: 5.4% (down from 10% in 1H 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.1%. Over the next year, revenue is forecast to grow 4.9%, compared to a 285% growth forecast for the industry in Australia. Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 10% per year. Announcement • Feb 25
QANTM Intellectual Property Limited Announces Dividend for the Six Months Ended December 31, 2021, Payable on April 6, 2022 QANTM Intellectual Property Limited announced distribution of AUD 0.030 per share for the six months ended December 31, 2021. Ex-date is March 2, 2022. Record date is March 3, 2022. Payment date is April 6, 2022. Executive Departure • Sep 02
Chief Financial Officer Martin Cleaver has left the company On the 30th of August, Martin Cleaver's tenure as Chief Financial Officer ended after 4.0 years in the role. We don't have any record of a personal shareholding under Martin's name. A total of 4 executives have left over the last 12 months. The current median tenure of the management team is 5.08 years. Announcement • Sep 01
QANTM Intellectual Property Limited (ASX:QIP) agreed to acquire Atlas Bottling Company from WNT Ventures Fund II managed by WNTVentures and K1W1 for AUD 11 million. QANTM Intellectual Property Limited (ASX:QIP) agreed to acquire Atlas Bottling Company from WNT Ventures Fund II managed by WNTVentures and K1W1 for AUD 11 million on September 1, 2021. Under the terms, AUD 7 million will be paid in cash and AUD 1 million will be paid in QANTM shares. In addition, deferred consideration of AUD 2 million will be paid in cash and AUD 1 million in stock, in two annual instalments subject to performance requirements. Post completion, the team of Sortify.tm Limited will join QANTM Intellectual Property Limited. The transaction is expected to complete on 30 September 2021. The transaction of Sortify.tm is likely to be earnings accretive within 12 months and will bring value to QANTM’s program of IT modernisation as well as expansion in the Asia-Pacific region, allowing the QANTM group to capture new and emerging market opportunities. Reported Earnings • Aug 26
Full year 2021 earnings released: EPS AU$0.077 (vs AU$0.072 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: AU$119.1m (up 2.2% from FY 2020). Net income: AU$10.5m (up 9.5% from FY 2020). Profit margin: 8.8% (up from 8.2% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Executive Departure • May 28
Independent Non-Executive Director has left the company On the 21st of May, Cameron J. Judson's tenure as Independent Non-Executive Director ended after 5.0 years in the role. As of March 2021, Cameron J. personally held only 45.04k shares (AU$45k worth at the time). A total of 3 executives have left over the last 12 months. Reported Earnings • Mar 01
First half 2021 earnings released: EPS AU$0.044 (vs AU$0.033 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: AU$58.6m (up 1.7% from 1H 2020). Net income: AU$5.96m (up 36% from 1H 2020). Profit margin: 10% (up from 7.6% in 1H 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 1% per year. Analyst Estimate Surprise Post Earnings • Feb 26
Revenue misses expectations Revenue missed analyst estimates by 0.9%. Over the next year, revenue is expected to shrink by 1.2% compared to a 15% growth forecast for the Professional Services industry in Australia. Announcement • Feb 05
QANTM Intellectual Property Limited to Report First Half, 2021 Results on Feb 25, 2021 QANTM Intellectual Property Limited announced that they will report first half, 2021 results on Feb 25, 2021 Is New 90 Day High Low • Dec 01
New 90-day high: AU$1.14 The company is up 6.0% from its price of AU$1.08 on 02 September 2020. The Australian market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Professional Services industry, which is up 11% over the same period. Announcement • Nov 27
QANTM Intellectual Property Limited Announces the Retirement of Abigail Cheadle as A Non-Executive Director of the Company, Effective 27 November 2020 QANTM Intellectual Property Limited announced the retirement of Abigail Cheadle as a Non-executive Director of the company, effective 27 November 2020. The Board of company reiterated their appreciation of Ms Cheadle's service as a Non-executive Director of the company since June 2016, as Chair of the Board's Audit, Risk and Compliance Committee until October 2020, and as a member of the People, Remuneration and Culture Committee throughout that period. Price Target Changed • Nov 27
Price target lowered to AU$1.60 Down from AU$1.80, the current price target is provided by 1 analyst. The new target price is 42% above the current share price of AU$1.13. As of last close, the stock is down 14% over the past year. Announcement • Oct 10
QANTM Intellectual Property Limited Announces Management Changes The Board of QANTM Intellectual Property Limited announced the resignation of Mr. Hasaka Martin as a Company Secretary of QANTM, with immediate effect. Mr. Martin Cleaver will continue to serve as Company Secretary of QANTM in addition to his role as Chief Financial Officer. Announcement • Oct 01
QANTM Intellectual Property Limited Announces Retirement of Abigail Cheadle as Non-Executive Director The Board of QANTM Intellectual Property Limited announced the retirement of Abigail Cheadle as a Non-executive Director of QANTM, with effect from the end of QANTM's 2020 Annual General Meeting, which is scheduled to be held on 27 November 2020. Abigail has served as a Non-executive Director since June 2016, and as Chair of the Board's Audit, Risk and Compliance Committee and as a member of the People, Remuneration and Culture Committee throughout that period. With the appointments to the Board on 1 July 2020 of Leon Allen as a non-executive director and Craig Dower as Managing Director (in addition to his role as CEO which commenced on 13 January 2020), there are no immediate plans to appoint an additional director. Announcement • Sep 08
QANTM Intellectual Property Limited Provides Update on Earning Guidance for the Fiscal Year 2021 QANTM Intellectual Property Limited provided update on earning guidance for the Fiscal Year 2021. The company did not provide any guidance for the year in this volatile environment. Announcement • Jun 22
QANTM Intellectual Property Limited(ASX:QIP) dropped from S&P/ASX Emerging Companies Index QANTM Intellectual Property Limited(ASX:QIP) dropped from S&P/ASX Emerging Companies Index 
