Murgitroyd

Patent and trade mark attorney group Murgitroyd, which has shown commendable sturdiness throughout the recession, says it traded in line with expectations during the year to May.

In an update following its May year-end, Murgitroyd, which helps clients file, prosecute and renew patents, informed that following a ‘satisfactory’ second half its full year results, set for release in early September, won’t disappoint. Bossed by affable CEO Keith Young and with offices in London, Milan, Munich and elsewhere, Murgitroyd is optimistic about its growth prospects and continues to expand overseas, having opened an office in Helsinki in Finland earlier this year followed by a new office in Japan at the start of June.

Back in February, the AIM-traded venture announced highly creditable numbers for a tough first half to November, during which it experienced a degree of pricing pressure. Nevertheless, sales edged up from £14.2m to £14.3m and pre-tax profits and dividends were maintained at £1.7m and 3p per share respectively. Market estimates for May 2010 point to growth in pre-tax profits from £3.1m to £3.4m as the top line builds from £28.9m to £30.4m. For May 2011, investors should look for £3.6m pre-tax on £31m sales.

Shares in Murgitroyd, a unique quoted company and robust growth business originally backed by Growth Company Investor at 127.5p back in 2002, have proved rather volatile 2010 performers, dropping off from a 302.5p peak to 255p.

Based on 2011 earnings of 30p and an improved 10.5p dividend however, they look unfairly unloved, selling for less than nine times earnings despite offering the additional attraction of a yield of around 4%. Keep buying.