TRADE mark and patent attorney Murgitroyd Group has unveiled a boardroom shake-up and an acquisition along with six-month results that brought increased revenue, profit and dividends.
The Glasgow-based firm extended its reach south of the border with the “earnings-enhancing” Chapman IP, the Southampton attorney for “an aggregate cash consideration of £6.6 million”.
In the boardroom, a more traditional format has been adopted with the chief executive and finance director roles now split, so Edward Murgitroyd becomes chief executive of Murgitroyd Group, after four years leading the operating business, and Keith Young continues as finance director.
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Also, having both served 17 years as non-executive directors, Kenneth Chrystie retires from the board and Mark Kemp-Gee has indicated that he will step down from the board at the AGM later this year.
Helga Chapman, founder and former managing director of Chapman IP, has been appointed as a non-executive director with immediate effect, in a move that represents “a vote of confidence in the acquisition”.
The process to appoint an additional independent non-executive director is at an advanced stage.
The intellectual property specialist said revenue increased five per cent to £22.7m, against £21.6m last year, and profit before tax £1.7m, compared to £1.67m.
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Earnings per share was up 3% to 14.2p and there was a proposed interim dividend of 7p per share, which set against 6.5p, is an increase of 7.7%
Speaking from the firm’s US base in North Carolina, Mr Murgitroyd, said: “We are very happy with our six-month results, showing growth of revenue, earnings and dividends.
“We are very excited to announce the acquisition, it has been a couple of years since the last acquisition.
"There have been some boardroom changes, all positive and really an evolution.
“I have been CEO for the last four years of Murgitroyd the operating company and Keith has very nicely done both roles on the plc board."
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He said: “We are now formalising that into a more natural and normal structure, which is Keith continuing his CFO role and me moving to the CEO role on the plc board.”
Mr Young said: “It is correct to say that we look at three or four indicators, so revenue is up, which is good, about 5%, profit before tax, another key indicator, a couple of per cent, which is good, earnings per share also heading in the right direction, and importantly, to push up the interim dividend is a real positive.
“To do that whilst completing an acquisition is a good thing.”
Gordon Stark, chief operating officer, said Brexit has had an effect on business."
He said: “We have seen increased revenue from clients that are looking to mitigate any potential risk, effectively taking a belt and braces approach.
“The Government has set out some guidance around how trademarks and European trademarks in particular may fare, but of course while we still don’t know for sure what the outcome of Brexit will be, there is an element of uncertainty, so some clients have decided to reach beyond that and file, or re-file rights in the UK, so we have seen some activity on that.”
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