Another year of growth at Murgitroyd

Patent and trade mark attorney Murgitroyd Group bragged of an eleventh consecutive year of increased turnover and profitability since floating on AIM in 2001.

Revenue in the year to May 31st rose 7.5% to £35.7m from £33.2m the year before. Profit before tax, before the impact of property valuations, climbed 10.3% to £4.43m from the previous year's £4.04m. The group's annual revaluation of its head office building led to a paper gain of £30,000.

Adjusted earnings per share shot up 19.3% to 36.4p from 30.5p the year before, paving the way for an 11.6% increase in the full-year dividend to 12p from 10.75p.

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The comparatively large year-on-year increase in earnings per share arises in part because of the impact of the prior year adjustments to overseas tax in 2011.

The group said the market for trade mark applications is buoyant in Europe, while patent filings are also growing. The group is also expecting to accommodate an increase in activity resulting from the UK Government's Patent Box initiative that will provide a Corporation Tax reduction to companies earning income from qualifying Intellectual Property Rights such as UK Patents.

"Although we remain cautious in light of the uncertain economic environment, we are confident in the group's ability to continue to generate organic growth. Tight cost control and maximising the funds available to invest in direct business development, systems improvement and efficiencies to drive competitive pricing remain priorities for the Group as we pursue growth," said Ian Murgitroyd, Chairman of the Scottish company.

Cash and cash equivalents at the end of the reporting period totalled £0.92m, up from £0.73m the year before, giving the group firepower to consider acquisitions, although the Chairman said the focus will continue to be on growing organically.

The shares rose 25p to 412.5p on the results.

JH