Murgitroyd's revenues inched up by £300,000, or 0.8%, to £36 million during the financial year to the end of May, it revealed yesterday. Pre-tax profit rose a healthier 2% to £4.5m as the company clamped down on costs.
Chief executive Keith Young said: "It is a good thing that the market we are in still sees growth in the amount of activity.
"In keeping with what other law firms are finding, accountancy practices are finding and other advisers, I think what has happened in the last few years is a rebasing of what business are willing, or in some cases able, to pay for professional services."
"There is great price competition between providers," he added.
Murgitroyd, which operates 15 offices in eight countries, has given more work to its cheaper paralegal staff, leaving its attorneys free to focus on higher margin business, particularly that with large corporates.
Staff numbers increased slightly from 240 to 235, with a slight fall in attorney numbers.
Mr Young said he hoped a pick-up in the economy, notably in the UK, would lead to greater business as trademark work has been hit by falls in advertising and marketing spend.
"There is no doubt that there is part of our market where work is discretionary," he said.
He added: "If we continue to see an improvement in the UK economy, and there is not just the green shoots of recovery, we would expect to see some trademark recovery as well."
He said that pick-up in investment, such as research and development, might also lead to more business for intellectual property attorneys.
But he noted that the level of patent applications coming from the UK is "well behind" the likes of Germany.
Following the increased profits, Murgitroyd announced a final dividend of 8.75p to be paid on November 4. This means a total payout for the year of 12.5p, an increase of 0.5p, or 4.2%, year-on-year.
Chairman Ian Murgitroyd said: "In a challenging macro environment, Murgitroyd has once again delivered increased sales and profitability.
"Investment in the business remains a key focus and the board is confident that Murgitroyd can continue on its steady growth path."
James Tetley, analyst at house broker N+1 Singer, wrote in a note for clients: "Revenue growth has been driven by a focus on winning new filing work from large corporate clients, primarily in the US.
"The results reinforce our confidence in Murgitroyd's ability to deliver sustainable earnings growth over the long term, driven by favourable market dynamics, continued investment in overseas expansion and tight cost control."
Shares in the Alternative Investment Market-listed company closed down 20p or 3.8% at 505p.