European IP firm Murgitroyd sees 10.9% drop in profits

September 8, 2014 European IP law firm group Murgitroyd reported a 10.9 per cent drop in profits during the 2013-14 financial year, from £4.6m to £4.1m. Basic earnings per share fell by 13.1 per cent, from 38.2p to 33.2p.The firm pointed to foreign exchange rate fluctuations as a major cause of the result.

The group managed to record revenue growth last year, continuing an unbroken record of growth since it was floated on the stock market in 2001. In 2013/14, Murgitroyd’s revenue increased by 6.6 per cent, from £36m to £38.4m.

The group did particularly well with US-based clients, increasing the fee-income from these clients from £2.7m to £12.9m in the past financial year. US clients now account for 33.6 per cent of the group’s fees, up from 7.5 per cent the previous year.

The firm said that it was “pleased” with the revenue increase, adding that the “price pressure we have seen in the market continues to impact the group and, we expect, will constrain profits progression both this year and next”.

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