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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Murgitroyd Group Plc | LSE:MUR | London | Ordinary Share | GB0031067456 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 670.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMMUR
RNS Number : 6878D
Murgitroyd Group PLC
02 February 2015
2 February 2015
Murgitroyd Group PLC ("the Group")
Unaudited Interim Results for the six months ended 30 November 2014
The Group (AIM: MUR) is pleased to announce its unaudited interim results for the six months ended 30 November 2014.
Highlights
-- Revenue marginally up at GBP19.28m (2013: GBP19.22m)
-- Interim profit before income tax in line with expectations at GBP1.98m (2013: GBP2.28m)
-- Basic EPS of 16.2p (2013: 18.6p)
-- Proposed interim dividend of 4.25p per share (2013: 3.75p per share), an increase of 13.3%
-- Continuing growth in US markets with revenue from this region increasing by 22% to GBP7.5m
Ian Murgitroyd, Group Chairman, commented:
"We are pleased to confirm that the Group remains on track to meet its revenue and earnings targets for the full year, in line with expectations. Our operating companies' focus on business development, as well as improvements in systems, processes and people provides the catalyst for them to continue to win new business and ensure the delivery of high quality services to clients. The strong growth achieved in the US is testament to the investment in this market. As illustrated by the increase in the interim dividend, the Board remains committed to delivering attractive returns to shareholders, whilst at the same time generating cash and strengthening the balance sheet. Although markets remain challenging, we are confident that the investments made will enable us to deliver long-term and sustainable growth."
For further information, please contact:
Keith Young, Group Chief Executive, Murgitroyd Group PLC 07802 951913 Sandy Fraser, N+1 Singer (NOMAD and Broker) 0131 529 0272
Georgina Hall, Cardew Group 0207 930 0777
Murgitroyd Group PLC
Chairman's Statement
Financial review
In the six months to 30 November 2014, revenue increased marginally from GBP19.22m to GBP19.28m. Profit before income tax decreased to GBP1.98m (six months ended 30 November 2013: GBP2.28m) reflecting on-going investment in new business and a greater proportion of revenue from the US where margins are currently lower. This performance is however in line with market expectations and represents an improvement on the six month period ended 31 May 2014 (GBP1.82m). We expect a further improvement in the second half of the current financial year. Basic earnings per share were 16.2p (2013: 18.6p).
Administrative expenses decreased marginally in the period under review as we continued to exercise tight cost control.
Continuing strong cash flow resulted in net cash of GBP288,000 as at 30 November 2014 (30 November 2013: net debt of GBP827,000).As a result interest charges were down to GBP13,000 from GBP21,000 as the Group continued to pay down its debt.
Operating review
Murgitroyd continues to service clients from fifteen offices in eight countries and the Group's operating businesses were rebranded as simply "Murgitroyd" on 1 July 2014. Led by Edward Murgitroyd and his management team, the operating businesses saw increased revenues driven by continued investment in business development, particularly in the US, and a focus on evolving the product offering enabling the better servicing of the demands of clients. The IP Portal filing service has proven increasingly popular amongst clients and there are adequate resources in place to provide for the growing number of larger corporate users. The investments made in internal, as well as client-facing, systems continue to deliver cost reductions in a market facing pricing pressures.
Business from the US saw significant growth of 22% in Sterling terms. In line with strategy, the US remains a key focus for investment and an increasingly important growth market, with revenue from this region contributing to circa 38% of Group revenue. The US is the largest source of European Patent applications and the growing presence in this market is helping to offset the effects of a stagnating market in Europe. Going forward our operating businesses will also be addressing the contraction in European revenues on a country by country basis.
The European Community Trade Mark Office ("OHIM") has shown that there has been an increase in Community Trade Mark ("CTM") applications. Their figures reveal that in 2014, more than 117,000 (2013: 114,000) CTM applications were filed. This is the fifth consecutive year of growth and set a new record, although the rate of growth has slowed over the past two years.
The European Patent Office ("EPO") has also reported a 3% year on year increase in Patent filings for 2014, the number of applications rising to more than 273,000, an all-time high. The composition of these filings very much reflect Murgitroyd's experience, with applications from the US increasing by 6.7%, Japanese applications falling by 3.8% and European applications remaining virtually unchanged.
OHIM's and EPO's statistics are considered good indicators of the current state of the European Intellectual Property market.
People
As at 30 November 2014 the Group employed 254 staff (2013: 244) including 62 (2013: 67) qualified Attorneys reflecting the continuing evolution in the composition of Group companies' staff complements, that sees a greater proportion of revenue being generated by formalities and paralegal staff.
Dividend
The Board is proposing an interim dividend of 4.25p per share (2013: 3.75p) that will be paid by 13 March 2015 to shareholders on the register at 13 February 2015. The ex-dividend date will be 12 February 2015. This increase reflects our previous announcement that the Group intends to adopt a higher payout ratio, reflecting the consistently cash generative nature of our business. The Board intends, subject to trading results, the availability of distributable reserves and economic outlook at that time, to recommend an increased final dividend.
Outlook
In a fairly difficult trading environment, these results are encouraging and the Board is confident in the Group's ability through ongoing investment and an established market presence to deliver sustainable, long-term growth and value to shareholders. We continue to seek earnings enhancing acquisitions and we are pleased to report that trading is in line with market expectations.
Ian G Murgitroyd
Group Chairman
2 February 2015
This interim announcement was approved by the Board of Directors on 2 February 2015.
MURGITROYD GROUP PLC
Unaudited consolidated statement of comprehensive income
for the six months ended 30 November 2014
Hot Features
Premium
Six months Six months Year
ended ended ended
30 November 30 November 31 May
2014 2013 2014
GBP'000 GBP'000 GBP'000
Revenue 19,276 19,215 38,353
Cost of sales (8,579) (8,143) (16,268)
------------- ------------- ---------
Gross profit 10,697 11,072 22,085
Administrative expenses (8,704) (8,771) (17,952)
------------- ------------- ---------
Operating profit 1,993 2,301 4,133
Financial income 2 2 4
Financial expense (13) (21) (37)
------------- ------------- ---------
Profit before income
tax 1,982 2,282 4,100
Income tax (533) (632) (1,150)
------------- ------------- ---------
Profit for the period
attributable to
equity holders
of the parent 1,449 1,650 2,950
============= ============= =========
Other comprehensive
income
Items that will
not be reclassified
to
profit or loss:
Revaluation of
property, plant
and
equipment - - 50
Items that are or
may be reclassified
subsequently to
profit or loss:
Foreign exchange
translation
differences - equity
accounted
investments 76 - (118)
------------- ------------- ---------
Profit for the financial
period and
total comprehensive
income all
attributable to
equity holders of
the parent 1,525 1,650 2,882
============= ============= =========
Earnings per share
Basic 16.23p 18.58p 33.16p
Diluted 16.00p 18.31p 32.67p
MURGITROYD GROUP PLC
Unaudited consolidated balance sheet
at 30 November 2014
30 November 30 November 31 May
2014 2013 2014
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 2,407 2,392 2,462
Intangible assets 14,927 14,969 14,936
Deferred tax asset 28 99 28
Total non-current assets 17,362 17,460 17,426
------------ ------------ ----------
Current assets
Work in progress 707 731 671
Trade and other receivables 14,989 13,908 14,515
Tax recoverable - - 125
Cash and cash equivalents 1,652 1,518 1,457
------------ ------------ ----------
Total current assets 17,348 16,157 16,768
------------ ------------ ----------
Total assets 34,710 33,617 34,194
------------ ------------ ----------
Current liabilities
Bank overdraft - (4) -
Other interest-bearing loans
and borrowings (523) (953) (795)
Trade and other payables (6,180) (5,786) (5,998)
Tax payable (133) (132) -
------------ ------------ ----------
Total current liabilities (6,836) (6,875) (6,793)
------------ ------------ ----------
Non-current liabilities
Other interest-bearing loans
and borrowings (841) (1,388) (1,045)
Provisions for liabilities - (55) -
Total non-current liabilities (841) (1,443) (1,045)
------------ ------------ ----------
Total liabilities (7,677) (8,318) (7,838)
------------ ------------ ----------
Net assets 27,033 25,299 26,356
============ ============ ==========
Equity
Share capital 893 891 893
Share premium 3,368 3,322 3,368
Merger reserve 6,436 6,436 6,436
Revaluation reserve 47 - 47
Foreign currency translation
reserve (42) - (118)
Retained earnings 16,331 14,650 15,730
------------ ------------ ----------
Total equity attributable to
equity
holders of the parent 27,033 25,299 26,356
============ ============ ==========
MURGITROYD GROUP PLC
Unaudited consolidated statement of cash flows
for the six months ended 30 November 2014
Six months Six months Year
ended ended ended
30 November 30 November 31 May
2014 2013 2014
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Profit for the period 1,449 1,650 2,950
Adjustments for:
Depreciation 142 120 255
Amortisation 31 32 65
Loss on disposal of property,
plant and equipment - - (15)
Other reserves movements 76 - (118)
Financing costs 11 19 33
Income tax expense 533 632 1,150
------------- ------------- ---------
2,242 2,453 4,320
Increase in trade and other
receivables (474) (40) (647)
Increase in work in progress (36) (108) (48)
Increase in trade and other
payables 180 87 302
Decrease in provision for
liabilities - - (55)
------------- ------------- ---------
1,912 2,392 3,872
Interest paid (11) (24) (43)
Interest received 2 2 4
Income tax paid (275) (321) (947)
------------- ------------- ---------
Net cash from operating
activities 1,628 2,049 2,886
------------- ------------- ---------
Cash flows from investing
activities
Acquisition of property,
plant and equipment (87) (198) (320)
Acquisition of intangible
assets (22) (87) (87)
Proceeds from disposal
of property, plant and equipment - - 15
Net cash used in investing
activities (109) (285) (392)
------------- ------------- ---------
Cash flows from financing
activities
Proceeds from exercise
of share options - 97 145
Repayment of borrowings (476) (553) (1,054)
Dividends paid (848) (779) (1,113)
------------- ------------- ---------
Net cash used in financing
activities (1,324) (1,235) (2,022)
------------- ------------- ---------
Increase in cash and cash
equivalents 195 529 472
Cash and cash equivalents
at start of period 1,457 985 985
------------- ------------- ---------
Cash and cash equivalents
at period end 1,652 1,514 1,457
============= ============= =========
MURGITROYD GROUP PLC
Unaudited consolidated statement of changes in equity
for the six months ended 30 November 2014
Share Share Profit Foreign Revaluation Merger Total
capital premium and currency reserve reserve
loss translation
account reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 June 2013 886 3,230 13,779 - - 6,436 24,331
Total comprehensive
income for the
year:
Profit for the
year - - 2,950 - - - 2,950
Exchange rate
differences - - - (118) - - (118)
Revaluation in
year - - - - 83 - 83
Transfer between
reserves - - 33 - (33) - -
Transactions with
owners recorded
directly in equity:
Dividends - - (1,113) - - - (1,113)
Deferred tax on
share options - - 81 - - - 81
Share options
exercised 7 138 - - - - 145
Deferred tax on
revaluation in
year - - - - (3) - (3)
Total equity at
31 May 2014 893 3,368 15,730 (118) 47 6,436 26,356
At 1 June 2013 886 3,230 13,779 - - 6,436 24,331
Total comprehensive
income for the
period:
Profit for the
period - - 1,650 - - - 1,650
Transactions with
owners recorded
directly in equity:
Dividends - - (779) - - - (779)
Share options
exercised 5 92 - - - - 97
Total equity at
30 November 2013 891 3,322 14,650 - - 6,436 25,299
At 1 June 2014 893 3,368 15,730 (118) 47 6,436 26,356
Total comprehensive
income for the
period:
Profit for the
period - - 1,449 - - - 1,449
Exchange rate
differences - - - 76 - - 76
Transactions with
owners recorded
directly in equity:
Dividends - - (848) - - - (848)
Total equity at
30 November 2014 893 3,368 16,331 (42) 47 6,436 27,033
NOTES:
1 Basis of preparation
Murgitroyd Group PLC ("the Group") is a company domiciled in the United Kingdom. The condensed consolidated interim financial statements of the Group for the six months ended 30 November 2014 comprise those of Murgitroyd Group PLC and its subsidiaries (together referred to as "the Group").
The interim statement is prepared applying the recognition and measurement requirements of IFRSs as adopted by the EU. The Group has elected not to prepare the interim statement in accordance with IAS 34 as adopted by the EU.
The interim statement does not include all the information required for full annual financial statements and should be read in conjunction with the financial statements of the Group as at and for the year ended 31 May 2014 which were prepared in accordance with IFRS as adopted by the EU.
The preparation of the interim statement requires the Directors to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results differ from these estimates. The accounting policies applied by the Group in this interim statement are the same as those applied in its financial statements as at and for the year ended 31 May 2014. The following amendments to existing standards were effective for the first time in the financial period commencing on 1 June 2014 but did not have a material impact on the condensed interim statements of the Group.
IFRS 10 Consolidated Financial Statements and IAS 27 (2011) Separate Financial Statements (Mandatory for year commencing on or after 1 January 2014.) This is part of a new suite of standards that replaces the existing accounting for subsidiaries and joint ventures.
IFRS 12 Disclosure of Interests in Other Entities (Mandatory for year commencing on or after 1 January 2014.) This standard contains the disclosure requirements for entities that have interests in subsidiaries, joint arrangements, associates and/or unconsolidated structured entities.
IAS 27 Separate Financial Statements (Mandatory for year commencing on or after 1 January 2014.) This standard carries forward the existing accounting and disclosure requirements of IAS 21 (2008) for separate financial statements with minor clarifications.
Amendments to IAS 32 "Offsetting Financial Assets and Financial Liabilities" (Mandatory for year commencing on or after 1 January 2014.)
Amendments to IAS 36 - "Recoverable amount disclosures for non-financial assets" (Mandatory for year commencing on or after 1 January 2014.)
Amendments to IAS 39 "Novation of Derivatives and Continuation of Hedge Accounting" (Mandatory for year commencing on or after 1 January 2014.)
IFRIC Interpretation 21 Levies (Mandatory for year commencing on or after 1 January 2014.)
The comparative figures for the financial year ended 31 May 2014 are not the Group's statutory accounts for that financial year. Those accounts have been reported on by the Group's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.
The interim statement was approved by the Board of Directors on 2 February 2015.
2 Taxation
A charge for taxation has been included at the effective rate likely to be applied to the Group result for the full year to 31 May 2015. Deferred tax is recognised at 20%.
3 Earnings per share
The earnings per share of Murgitroyd Group PLC are calculated by reference to the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during each period, as follows:
Six months Six months Year
ended ended ended
30 November 30 November 31 May
2014 2013 2014
GBP'000 GBP'000 GBP'000
Profit for the period
attributable to equity
holders of the parent 1,449 1,650 2,950
________ ________ ________
Basic weighted average
number of shares 8,926,847 8,876,579 8,897,617
Diluted weighted average
number of shares 9,057,367 9,010,322 9,030,610
Basic earnings per share 16.23p 18.58p 33.16p
Diluted earnings per
share 16.00p 18.31p 32.67p
4 Dividend
The Board is proposing an interim dividend of 4.25p per share (30 November 2013: 3.75p) that will be paid on 13 March 2015 to shareholders on the register at 13 February 2015 and will have an ex-dividend date of 12 February 2015.
The Board intends, subject to trading results, the availability of distributable reserves and economic outlook at that time, to recommend an increased final dividend.
5 Further copies
Copies of this announcement and the full interim statement will be available, free of charge, for a period of one month, from the Group's Nominated Broker, Nplus1 Singer Capital Markets Limited, Time Central, Gallowgate, Newcastle, NE1 4SR.
KPMG LLP
191 West George Street
Glasgow
G2 2LJ
United Kingdom
Independent review report to Murgitroyd Group PLC
Introduction
We have been engaged by the company to review the condensed set of financial statements in the half-yearly report for the six months ended 30 November 2014 which comprises the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity and the related explanatory notes. We have read the other information contained in the half-yearly report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the company in accordance with the terms of our engagement. Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly report in accordance with the AIM Rules.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this half-yearly report has been prepared in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly report for the six months ended 30 November 2014 is not prepared, in all material respects, in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU and the AIM Rules.
Bruce Marks
for and on behalf of KPMG LLP
Chartered Accountants
2 February 2015
This information is provided by RNS
The company news service from the London Stock Exchange
END
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