IP law firm Murgitroyd’s revenue slips below £44m

Glasgow-based intellectual property law firm Murgitroyd Group said on Tuesday its revenue slipped to £43.9 million in the year ended May 31, 2018, from £44.3 miilion the previous year.

Underlying profit before income tax increased by 7% to £4.1 million, and the firm is proposing a final dividend of 14.5p per share, giving a total dividend for the year of 21p, an increase of 24% year-on-year.

Reported profit before income tax after an exceptional item fell 6% to £3.6 million.

“As announced in the most recent trading statement, the results for the period include an exceptional provision of £408,000, net of tax relief, in relation to a single aged debtor balance,” said Murgitroyd.

“The client in question is a longstanding client who has traded with the group for 21 years, remitting more than £1.1m in cash over this period.

“The client continues to pay, does not dispute the debt, and has formally confirmed its intention to settle the balance in full.

“However, in view of the quantum of current payments, and the age of the current balance, 80% of which relates to financial years 2016 and earlier, the board considered that it was prudent and appropriate to make a full provision.”

Murgitroyd increased its cash position at the period end to £3.03 million from £2.54 million a year earlier.

Ian Murgitroyd, non-executive chairman of Murgitroyd Group plc, said: “I am pleased to report an increase in underlying pre-tax profit and record year-end cash balances for the period under review.

“Four years of significant investment in our pan-European footprint, software and business development, as well as back office efficiencies has put us in a strong competitive position to help offset any weakness in individual markets and to remain at the cutting edge of client-service and productivity.

“The board remains confident that it can continue to deliver sustainable long-term growth and value to shareholders, which together with an increasingly strong balance sheet, has allowed us to again propose an increased final dividend, consistent with the board’s progressive dividend policy.”