Murgitroyd's profits grow on tight cost control

9th Sep 2013 12:58

Murgitroyd's annual pre-tax profit rose by 2 per cent to 4.5 pounds as the European patent attorney achieved an increase in sales and reduced costs.Turnover for the year to end of May 2013 climbed a modest 0.8% to £36m, driven by an uptick in new filing work from larger corporate clients mainly in the US. Revenues from US clients have increased from £3.1m in 2008 to £10.2m in 2013. Group operating profit rose by 2.2% to £4.6m and basic earnings per share rose to 38.2p from 36.8p last year.The company said the year was marred by price pressures in the professional services market. The gross margin has fallen from 67% in 2008 to 58% this year. "In a challenging macro environment, Murgitroyd has once again delivered increased sales and profitability," said Chairman Ian Murgitroyd."Investment in the business remains a key focus and the board is confident that Murgitroyd can continue on its steady growth path."Net debt fell to £1.9m at the end of the period from last year's £3.2m. The group recommended a final dividend of 8.75p per share, bringing the total dividend for the year to 12.5p, a 4% year-on-year increase. Shares dipped 3.33% to 507.50p at 13:19 on Monday. RD