MURGITROYD, the patent and trademark attorney firm, has reported a seven per cent rise in underlying profits and declared its footprint within the European Union (EU) will give it a position of strength after Brexit.
The Glasgow-based firm highlighted its progress in the US, the UK and at its search operation in Nicaragua as it booked an underlying profit of £4.1 million for the year ended May 31. Murgitroyd ended the year with record cash balances of more than £3m, giving directors scope to recommend a total dividend of 21p – up 24 per cent on the year before.
Chief executive Keith Young noted Brexit remains an unknown quantity but emphasised that, with established offices throughout the EU, the firm’s ability to continue providing services for clients within the bloc will not be affected.
He said: “We have had a pan-European footprint for some time. We’ve got mainland European offices in Milan, Helsinki, Nice and Munich. We’ve also got a well-established office in Dublin.
“So, in what you might call the Eurozone continuing, we are well-established therefore post-Brexit.
“Though there are many unknowns about it, we feel a real competitive advantage through that established office network.”
Mr Young reiterated recent comments made by chairman Ian Murgitroyd, who said Brexit will bring opportunities, adding that some of its competitors will now be taking steps to establish offices in the EU for the first time.
He does not believe the uncertainty caused by Brexit is having any effect on the flow of trademark and patent applications being generated in Scotland.
Mr Young said: “Innovation continues, and at individual client level there are many factors that determine investment decisions. People just accept there is an element of uncertainty.”
Meanwhile, Mr Young highlighted the firm’s growth in the US, where its three offices now generate more than 50% of its revenues. The US now accounts for 50% of the demand it receives for European patent and trademark services, with the balance coming from Europe.
Profits at Murgitroyd fell 6% on a reported basis to £3.6m, which the firm said reflected an exceptional provision of £408,000, relating to a debt owed by a long-standing client. It said the client does not dispute the debt and has “formally confirmed its intention to settle the balance in full”.
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