Resilient Murgitroyd works on international expansion

COMPETITIVE pricing and a tight grip on costs have helped Scotland's only listed firm of patent and trademark attorneys to continue to expand during the recession, its chief executive claimed.

Keith Young said Glasgow-based Murgitroyd will officially open an office in the Finnish capital Helsinki next month and has continued to expand its sales office in North Carolina.

He said the firm is still seeking "the right individual" to lead its expansion in the Far East and is running the rule over potential bolt-on acquisitions in the UK.

His comments came as Aim-listed Murgitroyd posted interim pre-tax profits of 1.7 million, unchanged from the half-way stage a year earlier. Revenue in the six months to 30 November edged up from 14.2m to 14.3m.

The firm proposed an interim dividend of 3p, unchanged from 2008, and, subject to trading conditions, the company expects to recommend a final dividend.

Young told The Scotsman: "It's very much a case of 'steady as she goes'. The recession represents opportunities for us in that clients are potentially looking for cheaper deals and so we can pick up business that way."

Young said no redundancies had been made at the firm, with the number of qualified patent attorneys rising from 65 to 68. Chairman and founder Ian Murgitroyd also revealed that the company had renewed its facilities with Clydesdale Bank without increasing its borrowing costs.

Alex Magni, analyst at house broker Noble, said: "Whilst tight operational controls will help support second-half profits, longer term Murgitroyd will need to resume organic growth and/or value-added mergers and acquisitions to support its rating.

"Given its comparative advantage to other, smaller patent filing operators, the company remains well positioned to recruit selective talent in support of organic growth."

Shares fell 7.5p at 267.5p.