MURGITROYD, the patent and trademark attorney practice, has reported a dip in first-half profits as it continued its productive assault on the US market.

The intellectual property (IP) specialist reported pre-tax profits of £1.98 million in the six months to November 30, down on the £2.28m recorded last year but in line with market expectations.

AIM-listed Murgitroyd said the profits fall reflected continuing investment in new business and by driving a greater proportion of turnover in the US, where margins are lower. Turnover was marginally lifted to £19.28m, compared with £19.22m in 2013.

Building business in the US has been a major priority for Murgitroyd since the Glasgow-based firm set up an office in Durham, North Carolina, in 2008.

Murgitroyd now earns about 38 per cent of its revenue from the US, where turnover grew by 22 per cent to £7.5m in the first half. It noted that growth in the US, the largest source of European Patent applications, is helping it offset a "stagnating market in Europe".

Staff numbers at Murgitroyd stood at 254 at November 30, compared with 244 last year, 62 of whom are qualified attorneys. A growing proportion of revenue is being generated by formalities and paralegal staff, the company said. The firm operates from 15 offices in eight countries.

Forecasting that Murgitroyd will lift full-year profits before tax to £4.2m from £4.1m last year, broker N+1 Singer said the half-year results are "encouraging". It said: "This reflects good progress with business development, notably in the US, and a focus on systems and cost control. The interim dividend is up 13.3 per cent to 4.25p, a signal of the Board's confidence in long term growth prospects."

Chairman Ian Murgitroyd, who founded the IP firm in 1975, said: "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."

The company proposed an interim dividend of 4.25p per share, up 13.3 per cent on last year.

Shares closed up 2p at 492.5p.