7th Sep 2015 08:39
LONDON (Alliance News) - Murgitroyd Group PLC Monday said it is trading in line with its expectations and expressed confidence for its future, as it reported a small rise in pretax profit for its recently ended financial year.
The intellectual property services company posted a pretax profit of GBP4.2 million for the year to end-May, up from GBP4.1 million a year before, as revenue rose to GBP39.8 million from GBP38.4 million.
Murgitroyd said revenue growth had continued to be driven organically by its investment in business development, and a strong performance in the US which helped offset a further decline in revenue from its UK client base. A return to growth in the UK market, and in Europe more generally, is an area of "strategic focus" for Murgitroyd in the medium term, the company said.
Gross margin percentage decreased slightly to 55.4% from 57.6%, the company said, as a result of ongoing changes to its client and sales mix, and price pressure in the market.
The company proposed a final dividend of 10.5 pence, taking its total dividend for the year to 14.75 pence, up from 13.25 pence a year before.
"Despite the challenging trading environment, these results are encouraging and reinforce the board's confidence in the group's ability to deliver sustainable, long-term growth and value for shareholders. This, combined with the group's strong cash flows, underpins our commitment to a continued progressive dividend policy," said Chairman Ian Murgitroyd in a statement.
Shares in Murgitroyd were up 3.3% at 537.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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