LONDON (Alliance News) - Murgitroyd Group PLC on Thursday said it has refreshed its board and acquired European attorney firm after its profit remained unchanged in the first half of its current financial year.
The property attorney firm said pretax profit for the six months to the end of November 2018 remained broadly flat at GBP1.7 million, despite revenue increasing by 5.0% to GBP22.7 million from GBP21.6 million.
Revenue from US-based clients rose by just under 7%, to GBP11.5 million, while global support services revenue increased by 19% over the period.
Murgitroyd proposed an interim dividend of 7 pence a share, up 7.7% from 6.5p paid the year before.
In addition, the company said the UK remains an important market for Murgitroyd, with UK clients generating more than a quarter of its revenue. Thus it completed an acquisition of Chapman IP Ltd. The acquisition cost was GBP6.6 million, including net assets to be confirmed by completion accounts, but estimated at around GBP600,000.
Under the terms of the agreement, GBP5 million was paid in cash upon completion, the net asset payment will follow immediately upon agreement of completion accounts and the balance of GBP1 million is payable twelve months following completion.
"The acquisition is expected to be earnings enhancing for Murgitroyd in the first full financial year following completion," said Chair Ian Murgitroyd.
Chapman IP, an European patent & trade mark attorney practice, has a particular focus on providing IP services to the engineering, electronics, materials science, chemistry, software and IT, technology and creative services sectors. For the year to the end of June 2018, Chapman IP's revenue amounted to GBP4.1 million, with earnings before interest, taxes and amortization totalling GBP762,000.
With the exception of previous owner & manager Helga Chapman, all of Chapman IP's attorneys are remaining as employees with Murgitroyd following the acquisition.
Meanwhile, Chapman stepped down from an executive role with Chapman IP upon completion of the acquisition but will remain with the enlarged company, joining the board of Murgitroyd as a non-executive director.
Also, signalling the company's intent to refresh the non-executive board, Murgitroyd has split the roles of chief executive and finance director.
Non-Executive Director Kenneth Chrystie retired with immediate effect, and Mark Kemp-Gee has indicated that he will step down at the annual general meeting later this year after seventeen years' service as senior non-executive director.
Looking ahead, Chair Murgitroyd said: "We remain confident that we can continue to deliver sustainable long-term growth and value to shareholders, whilst maintaining our progressive dividend policy."
Shares in Murgitroyd were up 2.7% at 497.20 pence on Thursday.
