Xenith well placed to grow strongly on the back of a sticky client base
Xenith IP Group is the holding company of Shelton IP which is an intellectual property (IP) law firm boasting a 156 year history. Xenith’s revenues are correlated with Research and Development spend, as well as GDP growth. Clients are increasingly investing in, and producing IP which needs to be legally protected. The patents and trademarks created are generally long dated and require ongoing renewal which results in a steady stream of work for Xenith. Further, clients are sticky and rarely move unless they are unhappy with the service received. This is evidenced by the fact that the vast majority of Xenith’s clients have been with the firm for over 15 years. Xenith has over 3,000 clients and generates three-quarters of total revenue from foreign clients. They are also the leading firm with respect to Chinese companies seeking Australian patent protection, however this is only a small proportion of revenue currently. Xenith is a high quality business with experienced and sensible management, strong cash flows and recurring revenues. We believe it is well placed to continue to grow strongly. (VIEW LINK)
1 stock mentioned
The Perpetual Equity Investment Company Limited is an ASX listed investment company offering investors access to a portfolio of predominantly high quality Australian and global listed securities, selected by Perpetual Investment Management Limited.