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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 | 00:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:3166O
Murgitroyd Group PLC
05 August 2003
FOR RELEASE 0700 HOURS 5 AUGUST 2003
Murgitroyd Group PLC ("Murgitroyd" or "the Group")
Preliminary Results for the year ended 31 May 2003
Highlights
* Turnover increased by 17% to #10.56m (2002: #9.05m)
* Profit before tax and exceptional items up by 25% to #792,000
* Profit before tax up by 11% to #704,000
* Adjusted basic earnings per share up by 50% to 6.20p (2002: 4.13p).
* Dividend up by 18% to 1.570p per share (2002: 1.329p)
* Gross margin increased to 67.8% (2002: 65.2%)
* Significant new account wins
* French acquisition successfully completed
Ian Murgitroyd, Chairman, commented:
"I am delighted to report another solid performance by the Group with an
increase in turnover of 17%. The Group's pan-European expansion plans continue
to progress well and we have successfully completed the acquisition of Cabinet
Bonneau EURL near Nice, which added several significant clients to our portfolio
and results in the Group operating the largest French practice between Monaco
and Marseille. Despite slow economic activity, I believe we are in a strong
position to move the business forward and achieve the objectives we set
ourselves."
For further information, please contact:
Keith Young, Murgitroyd Group PLC T: 0141 307 8400
Alasdair Robinson, Noble & Company T: 0131 225 9677
Nadja Vetter / Richard Fallowfield, CardewChancery T: 020 7930 0777
Notes:
Murgitroyd Group PLC, the holding company of Murgitroyd & Company Limited
("Murgitroyd & Company"), a European Patent and Trade Mark Attorney practice,
was floated on the Alternative Investment Market of the London Stock Exchange
("AIM") on 30 November 2001. The Company is based in Glasgow with further
offices in Aberdeen, Belfast, Dublin, London, Munich and Nice.
Murgitroyd Group PLC specialises in the provision of Intellectual Property
services, including filing, prosecuting, litigating, licensing, assigning and
renewing Patents, Trade Marks and Designs and advising on Copyright. Services
span the major sectors of the global economy including technology, engineering,
electronics, chemistry and biotechnology. Clients range from large
multi-national corporations to individual inventors and both in-house and
external Patent Attorneys.
Murgitroyd Group PLC
Chairman's Statement
Introduction
I am pleased to report a continuing strong performance by the Group in the
financial year to 31 May 2003, Murgitroyd's first full year as a quoted company.
Despite slow economic activity, the Group has made significant progress and
has remained highly profitable.
Financial review
For the year ended 31 May 2003, the turnover of the Group's trading subsidiary,
Murgitroyd & Company, increased by 17% to #10.56m (2002: #9.05m). Its profit
before tax was up by 11% to #704,000 (2002: #634,000) and its gross margin
increased to 67.8% (2002: 65.2%).
The Group's basic earnings per share were 1.96p (2002: 2.00p) but adjusted basic
earnings per share stood at 6.20p (2002: 4.13p) after adding back goodwill
amortisation.
The Group's turnover for the second half of the financial year to 31 May 2003
rose by 10.5% year on year to #5.43m (six months to 31 May 2002: #4.92m), which
exceeded expectations.
As we announced in January this year, the Board undertook a detailed cost review
in anticipation of more difficult trading conditions. A number of prudent
decisions were made and implemented in the face of global economic
uncertainties. These addressed the level of overheads and, among the consequent
measures implemented, Directors' salaries were temporarily cut and bonus
entitlements waived. The benefits of this review became apparent in the second
half of the financial year as the pre-tax profit of Murgitroyd & Company
increased to 9.6% of turnover from the 3.6% earned in the first half.
As previously announced the Group has had to provide against #88,000 owed by one
of its longstanding clients, Artlite Limited, which unexpectedly went into
receivership in February 2003. The Official Receiver's formal review of the
circumstances of the receivership is ongoing. During the period under review
the Group has, for the first time, made a general bad debt provision. Total bad
debts either written off or provided against in the year amounted to #241,000
(2002: #38,000). Nevertheless Murgitroyd & Company's bad debt history over the
medium term remains good at less than 1% of sales.
Dividend
In accordance with the stated policy at the time of our AIM flotation, the
Directors are proposing a dividend of 1.570p per share (2002: 1.329p). Subject
to approval at the Annual General Meeting the dividend will be paid on 15
September 2003 to shareholders on the register on 15 August 2003.
Business review
The Group has continued to increase turnover and gained a significant number of
clients during the period under review, despite what has been generally viewed
as an uncertain time in the global Intellectual Property market. New clients
require significant levels of investment by the Group during the initial stages.
We retained our existing extensive portfolio of clients, which continue to
provide us with a steady income.
At the time of our AIM flotation we stated that our growth strategy was based on
the development of the truly pan-European service to which we remain committed.
During the period we have made further progress in implementing this strategy.
We have recently completed the acquisition of Cabinet Bonneau EURL which has
entailed relocating our Nice office to nearby Sophia Antipolis, the recruitment
of four qualified and part-qualified Attorneys and the addition of several
significant clients previously serviced by Cabinet Bonneau.
We are also in the process of expanding our operations in our other European
offices and expect to staff our Munich office in the course of the coming
financial year. We will consider strategic acquisitions and continue to believe
that a number of acquisition opportunities will arise as professionals retire
and exit practices.
People
We have always stressed that the ability to recruit, retain and incentivise
quality Patent and Trade Mark Attorneys is central to the success of the Group.
As at 31 May 2003 we employed 20 qualified Attorneys (2002: 17). This number has
since risen to 22. The average age profile of these Attorneys is still believed
to be significantly below the industry average. We continue to recruit trainee
Attorneys and develop our staff-training programmes. In addition we have in
place recruitment and development policies for support staff. The total number
of staff at 31 May 2003 was 129 (2002: 127).
On 1 July 2003 Paolo Pacitti resigned as an Executive Director to embark on a
sabbatical year. Paolo was a longstanding Partner of Murgitroyd & Company and
has been of enormous support to me personally. On behalf of all the staff at
Murgitroyd, we wish him well.
Operational Issues
The refurbishment of the Glasgow headquarters at Scotland House has been
completed on schedule. We have relocated all staff to these premises and
terminated the lease on Murgitroyd & Company's previous Head Office at no cost.
Share Price
During the year to 31 May 2003, the middle market price of our shares varied
from 108.5p to 150p. The current middle market price is 123.5p. This compares
with our flotation price of 121p.
Outlook
Despite difficult market conditions we have made significant progress in
achieving the objectives we set at the time of our AIM flotation. We believe
the Group has built a solid platform with which to continue to meet these aims
even if uncertain market conditions prevail. We look forward to the forthcoming
year with confidence.
Ian G. Murgitroyd
Chairman
4 August 2003
Pro forma Profit and Loss Account of Murgitroyd & Company Limited (2002: the
Murgitroyd & Company Limited sub-group)
for the years ended 31 May 2003 and 31 May 2002
2003 2002
Before Exceptional Year Before Exceptional Year
exceptional admin. ending 31 exceptional admin. ending 31
admin. May 2003 admin. expenses May 2002
expenses expenses expenses
#'000 #'000 #'000 #'000 #'000 #'000
Turnover 10,561 - 10,561 9,054 - 9,054
Cost of sales (3,403) - (3,403) (3,150) - (3,150)
Gross profit 7,158 - 7,158 5,904 - 5,904
Administrative expenses
- standard (6,312) - (6,312) (5,192) - (5,192)
- exceptional* - (88) (88) - - -
Operating profit 846 (88) 758 712 - 712
Interest receivable and similar 10 - 10 19 - 19
income
Interest payable and similar charges (64) - (64) (97) - (97)
Profit on ordinary activities before 792 (88) 704 634 - 634
taxation
* bad debt provision
Consolidated Profit and Loss Account
for the year ended 31 May 2003 (2002: ten month period ended 31 May 2002)
2003 2002
Before Goodwill Year Before Goodwill Period
goodwill amortisation ending 31 goodwill amortisation ending 31
amortisation May 2003 amortisation May 2002
#'000 #'000 #'000 #'000 #'000 #'000
Turnover 10,561 - 10,561 4,917 - 4,917
Cost of sales (3,403) - (3,403) (1,674) - (1,674)
Gross profit 7,158 - 7,158 3,243 - 3,243
Administrative expenses
- standard (6,313) (351) (6,664) (2,794) (175) (2,969)
- exceptional* (88) - (88) - - -
Operating profit 757 (351) 406 449 (175) 274
Interest receivable and 10 - 10 5 - 5
similar income
Interest payable and (64) - (64) (24) - (24)
similar charges
Profit on ordinary 703 (351) 352 430 (175) 255
activities before
taxation
Tax on profit on ordinary (189) - (189) (89) - (89)
activities
Profit on ordinary
activities after taxation
and for the financial 514 (351) 163 341 (175) 166
year/(period)
Dividends - equity (130) - (130) (110) - (110)
Retained profit for the 384 (351) 33 231 (175) 56
year/(period)
Earnings per 10p ordinary
share
Basic - 1.96p - 2.00p
Diluted - 1.96p - 2.00p
Adjusted, basic before 6.20p - 4.13p -
goodwill amortisation
Adjusted, diluted before 6.20p - 4.12p -
goodwill amortisation
* bad debt provision
Balance sheets
at 31 May 2003 and 31 May 2002
2003 2002
Murgitroyd Murgitroyd & Murgitroyd Murgitroyd &
Group PLC Company Group PLC Company
#'000 #'000 #'000 #'000
Fixed assets
Tangible assets 1,988 - 1,876 -
Investments 9 8,056 - 8,056
Intangible assets 6,501 - 6,852 -
8,498 8,056 8,728 8,056
Current assets
Work in progress 230 - 241 -
Debtors 4,603 1,635 3,688 1,633
Cash at bank and in hand 106 - 1,147 1,012
4,939 1,635 5,076 2,645
Creditors: amounts falling due within (3,546) (130) (3,909) (1,137)
one year
Net current assets 1,393 1,505 1,167 1,508
Total assets less current liabilities 9,891 9,561 9,895 9,564
Creditors: amounts falling due after (224) - (272) -
more than one year
Provisions for liabilities and charges (10) - (8) -
Net assets 9,657 9,561 9,615 9,564
Capital and reserves
Called up share capital 828 828 828 828
Share premium account 8,694 8,694 8,695 8,695
Revaluation reserve 46 - 36 -
Profit and loss account 89 39 56 41
Shareholders' funds - all equity 9,657 9,561 9,615 9,564
Consolidated Cash Flow statement
for the year ended 31 May 2003 (2002: ten month period ended 31 May 2002)
Year ending 31 Period ending
May 2003 31 May 2002
#'000 #'000
Net cash inflow/(outflow) from operating activities 276 (2,034)
Returns on investments and servicing of finance
Interest received 7 3
Bank interest paid (58) (34)
Interest element of hire purchase repayments (3) (1)
Net cash outflow from returns on investments and servicing of finance (54) (32)
Taxation (179) (160)
Capital expenditure and financial investment
Purchase of tangible fixed assets (246) (163)
Proceeds from sale of tangible fixed assets - -
Net cash outflow from capital expenditure and financial investment (246) (163)
Acquisitions
Purchase of subsidiary (9) -
Cash at hand and in bank acquired with subsidiary undertaking - 826
Net cash (outflow)/inflow from acquisitions (9) 826
Equity dividends paid (110) -
Cash outflow before financing (322) (1,563)
Financing
Issue of ordinary share capital for cash - 3,000
Expenses of share issues (1) (493)
Decrease in bank loans due outwith one year (55) (25)
Repayment of capital element of hire purchase obligations (26) (15)
Repayment of Loan Notes (1,012) -
Net cash (outflow)/inflow from financing (1,094) 2,467
(Decrease)/increase in cash in the year/period (1,416) 904
NOTES:
1. Accounting Policies
The Financial Statements have been prepared in accordance with applicable
Accounting Standards and under the historical cost accounting rules, modified to
include the revaluation of buildings.
2. Basis of Preparation
The financial information set out in this announcement does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. The
balance sheet, pro forma profit and loss account, consolidated profit and loss
account and consolidated cash flow statement at 31 May 2003 for Murgitroyd Group
PLC have been extracted from the statutory accounts upon which the auditor's
opinion was unqualified and does not contain a statement under section 237(2) of
the Companies Act 1985. The statutory accounts for the period ended 31 May 2003
will be filed with the Registrar of Companies.
3. Earnings Per Share
Earnings per 10p ordinary share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average number of ordinary
shares in issue during the period. For diluted earnings per share, the weighted
average number of ordinary shares in issue is adjusted to assume conversion of
all dilutive potential shares.
Earnings Weighted 2003
average number
of shares Earnings Per
Number Share
#'000
Basic earnings per share 163 8,277,887 1.96
Dilutive share options - 8,579 (0.00)
Diluted earnings per share 163 8,286,466 1.96
Amortisation of goodwill 351 8,286,466 4.24
Adjusted, diluted earnings per share 514 8,286,466 6.20
Adjusted, basic earnings per share 514 8,277,887 6.20
4. Annual General Meeting
The Annual General Meeting will be held at Murgitroyd Group PLC, Scotland House,
165-169 Scotland Street, Glasgow, G5 8PL at 11.30am on 2 September 2003.
5. Further Copies
Copies of this announcement and the full annual report and accounts are
available, free of charge, for a period of one month from the Company's
Nominated Adviser and Broker Noble & Company Limited, 1 Frederick's Place,
London, EC2R 8AB, Tel: 020 7367 5600. Copies of the full financial statements
will be posted to shareholders as soon as possible.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SSUFWLSDSEEA
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