US expansion paying off for Murgitroyd

Patent and trade mark attorney Murgitroyd had a strong second quarter, reflecting increased acitivity levels and contract wins.

Revenue in the six months ended November 30th rose 13% to £18.0m from £16.0m at the interim stage the year before. Profit before tax climbed 23% to £2.2m from £1.8m.

Interim earnings per share came in at 17.32p, up from 14.43p in the preceding year.

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The period also saw a continuation in the transition to greater use of specialist paralegal and formalities staff as fee earners. This assisted in the reduction of the cost of sales attached to particular types of work and in the winning of new business.

Take up of the intellectual property portal service showed strong growth during the period and the Scottish firm saw an increase in business generated from the US where the group's new business development office in San Francisco was open throughout the period after opening in May 2011.

Despite a sparkling second quarter to the group's financial year (which runs to the end of May), the group remains cautious in its outlook and determined to keep a tight control on costs.

"We are confident in Murgitroyd's ability to progress despite the macro-economic factors at large, but for the same reason we remain cautious. Alongside cost management, direct business development and client servicing remain key priorities for the group going forward," said Ian Murgitroyd, the group's Chairman.

The board is proposing an unchanged interim dividend of 3.5p per share and, subject to trading results, economic outlook and the availability of distributable reserves, intends to recommend a final dividend when it announces its full year results. .

Shares in the intellectual property legal eagles rose 17.5p to 345p on the morning of the results announcement.

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