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Sector
Industrials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £48.0m
Position in Universe th / 1821

Murgitroyd Group PLC Interim Results

Tue 2nd February, 2010 7:00am
TIDMMUR

RNS Number : 5012G
Murgitroyd Group PLC
02 February 2010

?
Murgitroyd Group PLC ("Murgitroyd" or "the Group")
Unaudited Interim Results for the six months ended 30 November 2009

Murgitroyd (AIM:MUR), the European Patent and Trade Mark Attorney, is pleased to
announce its unaudited interim results for the six months ended 30 November 2009
during which the Group has continued to make progress and perform in line with
market and management expectations.

Highlights

Revenue of GBP14.3 million (2008: GBP14.2 million)

Gross profit of GBP8.9 million (2008: GBP9.1 million)

Profit before tax unchanged at GBP1.7 million

Basic EPS of 13.9p (2008: 14.1p)

Unchanged proposed interim dividend of 3p per share (2008: 3p per share)

New Nordic office established in Helsinki, Finland

US operations expanded

Qualified Attorney numbers up from 65 to 68 year-on-year

Ian Murgitroyd, Group Chairman, commented:

"I am pleased to report that Murgitroyd has performed in line with expectations
and as indicated at the time of our preliminary results in September 2009. We
have continued to grow activity in a challenging economic environment. We have
also established a new office in Finland to represent clients' interests in the
Nordic countries directly and expanded our US operation, both of which are a
reflection of our ongoing investment in expansion.

We have renewed our facilities with Clydesdale Bank without increased borrowing
costs. We will continue to evaluate suitable acquisition opportunities that are
immediately earnings enhancing and complementary to the Group's existing
offering. Although confidence in an improving global economy remains fragile,
the Board believes that Murgitroyd remains well positioned to take advantage of
the opportunities in the market."

For further information, please contact:

+-------------------------------------------------+-------------------------------------------------+
| Keith Young, Murgitroyd Group PLC | 07802 951913 |
+-------------------------------------------------+-------------------------------------------------+
| David Ovens, Noble & Company Limited | 0131 225 9677 |
+-------------------------------------------------+-------------------------------------------------+
| Nadja Vetter/Catherine Maitland, Cardew Group | 020 7930 0777 |
+-------------------------------------------------+-------------------------------------------------+


Notes to Editors

Murgitroyd Group PLC, the holding company of Murgitroyd & Company Limited
("Murgitroyd & Company"), a European Patent and Trade Mark Attorney practice,
was floated on AIM on 30 November 2001. The practice has European offices in
Aberdeen, Belfast, Dublin, Edinburgh, Glasgow, Helsinki, London, Milan,
Muenster, Munich, Newcastle, Nice and York, and an office in Raleigh, North
Carolina. Murgitroyd Group PLC specialises in the provision of Intellectual
Property services, including filing, prosecuting, litigating, licensing,
assigning and renewing Patents, Trade Marks and Designs, advising on Copyright
and generally assisting clients with the management of their Intellectual
Property. Patent services span the major sectors of the global economy
including engineering, electronics, chemistry and biotechnology with clients
ranging from large multi-national corporations to individual inventors and both
in-house and external Patent Attorneys. The practice services major Trade Mark
clients from the personal care, clothing, food and drinks, tobacco,
pharmaceuticals, chemicals and oil industries together with service sector,
sport and entertainment and retail industry clients. Trade Mark services are
also provided to other private practice Trade Mark Attorneys.

Murgitroyd
Group PLC ("the Group")
Chairman's Statement

Financial and operating review

For the six months ended 30 November 2009, Group revenue increased by just under
1% to GBP14.3 million (2008: GBP14.2 million). Gross profit was GBP8.9 million
(2008: GBP9.1 million) reflecting increased activity offset by the expected
tightening of margins. The Group continues to win new business, including
business won through formal invitation to tender processes, albeit under price
pressure. Profit before tax is unchanged year on year at GBP1.7 million. Basic
earnings per share were 13.9p during the period (2008: 14.1p). Gross margin for
the Group was 62.5% (2008: 64.1%), exactly in line with expectations, and
continuing to reflect pricing pressure in the current economic climate.

Interest charges for the six months under review were substantially lower than
in the comparative period last year amounting to GBP98,000 (2008: GBP262,000),
as the Group benefited from lower rates and keenly priced bank facilities.
Foreign exchange gains were stable at GBP118,000 (2008: GBP121,000), as the
Group continued to successfully manage its exposure to foreign exchange
movements.

The Group operated thirteen offices in eight countries during the period and has
recruited the first staff for a new office in Finland to represent clients'
interests in the Nordic countries directly. Murgitroyd & Company will formally
start doing business from its fourteenth office, in Helsinki, Finland, in March
this year. Currently the Helsinki staff are working out of existing offices
pending the official opening in March. The growth and development of the
Group's network of offices continues, and during the period new staff were also
added to the office in Raleigh, North Carolina, reflecting the Group's continued
commitment to the important North American market.

Murgitroyd continues to look for, and evaluate, suitable acquisition
opportunities. As I have stated previously, strict assessment criteria remain
paramount and we will only consider acquisitions that will be immediately
earnings enhancing and complementary to the Group's existing offering as well as
providing long term additional fee earning capacity.

Banking

The Group completed its annual review of facilities with Clydesdale Bank as at
30 November 2009. The renewed overdraft facilities remain priced at LIBOR plus
2%, additional to the existing Term Loan debt, which is primarily priced at
LIBOR plus 1%. The total outstanding Term Loan debt as at 30 November 2009
amounted to GBP6.3 million (31 May 2009: GBP6.8 million). The Group has
continued to operate comfortably within its trading and cash flow banking
covenants, the latter having been, pleasingly, relaxed as part of the recent
renewal of facilities. The Board believes the Group's bank facilities remain
competitively priced in the current economic environment, and are sufficient for
its current purposes.

The market

The European Patent Office ("EPO") has not yet published the statistics for
2009. In 2008 the EPO reported a year on year increase of just under 2% in the
number of European Patents filed, while the Community Trade Mark ("CTM")
Office's 2009 statistics showed new CTM filings were just 1% lower year on year.
These statistics are used as benchmarks for the number of new filings for
Intellectual Property Rights and are considered good indicators of current
market conditions.


People

At 30 November 2009 there were 68 qualified Attorneys working for Murgitroyd (30
November 2008: 65). The total number of employees as at 30 November 2009 was
222 (30 November 2008: 226).

I would like to take this opportunity to thank all our staff for their continued
hard work and commitment to the Group.

Share price

During the period, the middle market share price fluctuated between 225p and
298p. The current middle market price is 275p.

Dividend

The Board is proposing an unchanged interim dividend of 3p per share (2008: 3p).
The Board also intends, subject to trading results, economic outlook and the
availability of distributable reserves, to recommend a final dividend.

Outlook

Despite a continuing challenging economic background, Murgitroyd has produced
its ninth consecutive year of growth since flotation, reflecting the strength of
its brand and people. Trading in the first six months of the current financial
year has been as expected, with the Group continuing to invest in business
development activities to support organic growth, and in geographical expansion
to consolidate its position as a leading pan-European Attorney practice.

The Group will continue to pursue its strategy of growing both organically and,
where appropriate, through selective acquisitions.

Ian G Murgitroyd
Chairman

2 February 2010

This interim announcement was approved by the Board of Directors on 2 February
2010.
MURGITROYD GROUP PLC

Unaudited Condensed Consolidated Income Statement
For the six months ended 30 November 2009

+-------------------------------------+------------------+----------------+----------------+
| | Six months ended | Six months | Year |
| | 30 November 2009 | ended | ended |
| | GBP'000 | 30 November | 31 May |
| | | 2008 | 2009 |
| | | GBP'000 | GBP'000 |
+-------------------------------------+------------------+----------------+----------------+
| | | | |
+-------------------------------------+------------------+----------------+----------------+
| Revenue | 14,286 | 14,214 | 28,904 |
+-------------------------------------+------------------+----------------+----------------+
| | | | |
+-------------------------------------+------------------+----------------+----------------+
| Cost of sales | (5,359) | (5,099) | (10,503) |
+-------------------------------------+------------------+----------------+----------------+
| | | | |
+-------------------------------------+------------------+----------------+----------------+
| Gross profit | 8,927 | 9,115 | 18,401 |
+-------------------------------------+------------------+----------------+----------------+
| | | | |
+-------------------------------------+------------------+----------------+----------------+
| Administrative expenses | | | |
| (including property revaluation | | | |
| deficit of GBP355,000 in year | | | |
| ended 31 May 2009) | (7,153) | (7,153) | (14,907) |
+-------------------------------------+------------------+----------------+----------------+
| | | | |
+-------------------------------------+------------------+----------------+----------------+
| | | | |
+-------------------------------------+------------------+----------------+----------------+
| Operating profit before | | | |
| property revaluation deficit | 1,774 | 1,962 | 3,849 |
+-------------------------------------+------------------+----------------+----------------+
| Property revaluation deficit | - | - | (355) |
+-------------------------------------+------------------+----------------+----------------+
| | | | |
+-------------------------------------+------------------+----------------+----------------+
| | | | |
+-------------------------------------+------------------+----------------+----------------+
| Operating profit | 1,774 | 1,962 | 3,494 |
+-------------------------------------+------------------+----------------+----------------+
| | | | |
+-------------------------------------+------------------+----------------+----------------+
| Financial income | 2 | 3 | 9 |
+-------------------------------------+------------------+----------------+----------------+
| Financial expense | (98) | (262) | (411) |
+-------------------------------------+------------------+----------------+----------------+
| | | | |
+-------------------------------------+------------------+----------------+----------------+
| Profit before income tax | 1,678 | 1,703 | 3,092 |
+-------------------------------------+------------------+----------------+----------------+
| | | | |
+-------------------------------------+------------------+----------------+----------------+
| Income tax | (500) | (512) | (1,040) |
+-------------------------------------+------------------+----------------+----------------+
| | | | |
+-------------------------------------+------------------+----------------+----------------+
| Profit for the period attributable | 1,178 | 1,191 | |
| to | | | 2,052 |
| equity holders of the parent | | | |
+-------------------------------------+------------------+----------------+----------------+
| | | | |
+-------------------------------------+------------------+----------------+----------------+
| Earnings per share | | | |
+-------------------------------------+------------------+----------------+----------------+
| | | | |
+-------------------------------------+------------------+----------------+----------------+
| Basic | 13.88p | 14.07p | 24.23p |
+-------------------------------------+------------------+----------------+----------------+
| Diluted | 13.62p | 13.84p | 23.75p |
+-------------------------------------+------------------+----------------+----------------+

MURGITROYD GROUP PLC

Unaudited Condensed Consolidated Balance Sheet
At 30 November 2009

+--------------------------------------+---------+----------------+----------------+----------------+
| | | 30 November | 30 November | 31 May |
| | | 2009 | 2008 | 2009 |
| | | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------------+---------+----------------+----------------+----------------+
| Assets | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Non-current assets | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Property, plant and equipment | | 1,859 | 2,430 | 1,921 |
+--------------------------------------+---------+----------------+----------------+----------------+
| Intangible assets | | 14,815 | 14,193 | 14,806 |
+--------------------------------------+---------+----------------+----------------+----------------+
| Deferred tax asset | | - | - | - |
+--------------------------------------+---------+----------------+----------------+----------------+
| | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Total non-current assets | | 16,674 | 16,623 | 16,727 |
+--------------------------------------+---------+----------------+----------------+----------------+
| | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Current assets | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Work in progress | | 563 | 509 | 479 |
+--------------------------------------+---------+----------------+----------------+----------------+
| Trade and other receivables | | 11,007 | 9,816 | 10,156 |
+--------------------------------------+---------+----------------+----------------+----------------+
| Cash and cash equivalents | | 2,268 | 938 | 2,143 |
+--------------------------------------+---------+----------------+----------------+----------------+
| | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Total current assets | | 13,838 | 11,263 | 12,778 |
+--------------------------------------+---------+----------------+----------------+----------------+
| | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Total assets | | 30,512 | 27,886 | 29,505 |
+--------------------------------------+---------+----------------+----------------+----------------+
| | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Current liabilities | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Bank overdraft | | (1,801) | (728) | (1,386) |
+--------------------------------------+---------+----------------+----------------+----------------+
| Other interest-bearing loans | | | | |
| and borrowings | | (1,719) | (1,568) | (1,699) |
+--------------------------------------+---------+----------------+----------------+----------------+
| Trade and other payables | | (5,467) | (5,030) | (5,178) |
+--------------------------------------+---------+----------------+----------------+----------------+
| Tax payable | | (278) | (460) | (135) |
+--------------------------------------+---------+----------------+----------------+----------------+
| | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Total current liabilities | | (9,265) | (7,786) | (8,398) |
+--------------------------------------+---------+----------------+----------------+----------------+
| | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Non-current liabilities | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Other interest-bearing loans | | | | |
| and borrowings | | (5,539) | (5,636) | (6,057) |
+--------------------------------------+---------+----------------+----------------+----------------+
| Other payables | | - | - | - |
+--------------------------------------+---------+----------------+----------------+----------------+
| Provisions for liabilities | | (41) | (65) | (45) |
+--------------------------------------+---------+----------------+----------------+----------------+
| Deferred tax liabilities | | (16) | (37) | (19) |
+--------------------------------------+---------+----------------+----------------+----------------+
| | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Total non-current liabilities | | (5,596) | (5,738) | (6,121) |
+--------------------------------------+---------+----------------+----------------+----------------+
| | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Total liabilities | | (14,861) | (13,524) | (14,519) |
+--------------------------------------+---------+----------------+----------------+----------------+
| | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Net assets | | 15,651 | 14,362 | 14,986 |
+--------------------------------------+---------+----------------+----------------+----------------+
| | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Equity | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Share capital | | 849 | 848 | 848 |
+--------------------------------------+---------+----------------+----------------+----------------+
| Share premium | | 2,570 | 2,557 | 2,557 |
+--------------------------------------+---------+----------------+----------------+----------------+
| Merger reserve | | 6,436 | 6,436 | 6,436 |
+--------------------------------------+---------+----------------+----------------+----------------+
| Revaluation reserve | | - | 34 | - |
+--------------------------------------+---------+----------------+----------------+----------------+
| Retained earnings | | 5,796 | 4,487 | 5,145 |
+--------------------------------------+---------+----------------+----------------+----------------+
| | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
| Total equity attributable to equity | | | | |
| holders of the parent | | 15,651 | 14,362 | 14,986 |
+--------------------------------------+---------+----------------+----------------+----------------+
| | | | | |
+--------------------------------------+---------+----------------+----------------+----------------+
MURGITROYD GROUP PLC

Unaudited Condensed Consolidated Statement of Cash Flows
For the six months ended 30 November 2009

+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | Six months | Six months | Year |
| | | ended | ended | ended |
| | | 30 November | 30 November | 31 May |
| | | 2009 | 2008 | 2009 |
| | | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Cash flows from operating activities | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Profit for the period | | 1,178 | 1,191 | 2,052 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Adjustments for: | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Depreciation | | 115 | 135 | 261 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Amortisation | | - | 7 | 7 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Gain on disposal of property, plant and equipment | | - | - | 1 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Provisions | | (4) | - | (39) |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Property revaluation deficit | | - | - | 355 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Financing costs | | 96 | 259 | 402 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Equity settled share-based payment expense | | 22 | - | 27 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Income tax expense | | 500 | 512 | 1,040 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | 1,907 | 2,104 | 4,106 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Increase in trade and other receivables | | (851) | (409) | (432) |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| (Increase)/decrease in work in progress | | (84) | 91 | 125 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| (Decrease)/increase in trade and other payables | | (255) | 541 | 525 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | 717 | 2,327 | 4,324 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Interest paid | | (90) | (220) | (329) |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Interest received | | 2 | 3 | 9 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Income tax paid | | (357) | (293) | (1,107) |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Net cash from operating activities | | 272 | 1,817 | 2,897 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Cash flows from investing activities | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Acquisition of property, plant and equipment | | (53) | (66) | (85) |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Proceeds from disposal of property, plant and | | | | |
| equipment | | - | - | - |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Acquisition of subsidiary, net of cash acquired | | (9) | (271) | (961) |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Net cash used in investing activities | | (62) | (337) | (1,046) |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Cash flows from financing activities | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Proceeds from exercise of share options | | 14 | 91 | 91 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Loans received | | - | 300 | 1,531 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Repayment of borrowings | | (514) | (686) | (1,486) |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Payment of finance lease liabilities | | - | - | - |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Dividends paid | | - | (551) | (806) |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Net cash used in financing activities | | (500) | (846) | (670) |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Net (decrease)/increase in cash and cash equivalents | | (290) | 634 | 1,181 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Cash and cash equivalents at start of period | | 757 | (424) | (424) |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Cash and cash equivalents at period end | | 467 | 210 | 757 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+

MURGITROYD GROUP PLC

Unaudited Consolidated Statement of Changes in Equity
For the six months ended 30 November 2009

+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | Six months | Six months | Year |
| | | ended | ended | ended |
| | | 30 November | 30 November | 31 May |
| | | 2009 | 2008 | 2009 |
| | | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Opening total equity | | 14,986 | 13,713 | 13,713 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Total comprehensive income and expense | | | | |
| for the period - profit for the period | | 1,178 | 1,191 | 2,052 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Dividends | | (552) | (551) | (806) |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Share based payments | | 22 | - | 27 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Deferred tax on share options | | 3 | (82) | (57) |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Share options exercised | | 14 | 91 | 91 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Revaluation in period | | - | - | (47) |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Deferred tax on revaluation in period | | - | - | 13 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| Closing total equity | | 15,651 | 14,362 | 14,986 |
+-------------------------------------------------------+----------+---------------+--------------+---------+
| | | | | |
+-------------------------------------------------------+----------+---------------+--------------+---------+
NOTES:

1 Basis of preparation

Murgitroyd Group PLC ("the Group") is a company domiciled in the United Kingdom.
The consolidated interim financial statements of the Group for the six months
ended 30 November 2009 comprise the Murgitroyd Group PLC and its subsidiaries
(together referred to as "the Group").

The interim statement is prepared applying the recognition and measurement
requirements of Adopted International Financial Reporting Standards ("IFRSs as
adopted by the EU"). The Group has elected not to prepare the interim statement
in accordance with IAS 34 as adopted by the EU.

The interim statement does not include all the information required for full
annual financial statements and should be read in conjunction with the financial
statements of the Group as at and for the year ended 31 May 2009 which were
prepared in accordance with IFRS as adopted by the EU.

The preparation of the interim statement requires the Directors to make
judgements, estimates and assumptions that affect the application of policies
and reported amounts of assets and liabilities, income and expenses. Actual
results differ from these estimates. The accounting policies applied by the
Group in this interim statement are the same as those applied in its financial
statements as at and for the year ended 31 May 2009 except for the impact of the
adoption of IAS 1 (revised) "Presentation of Financial Statements". The revised
standard has resulted in a number of changes in presentation and disclosure,
most significantly the introduction of the Consolidated Statement of Changes in
Equity as a primary statement. It has no impact on the reported results or
financial position of the Group.

The comparative figures for the financial year ended 31 May 2009 are not the
Group's statutory accounts for that financial year. Those accounts have been
reported on by the Group's auditors and delivered to the registrar of companies.
The report of the auditors was (i) unqualified, (ii) did not include a
reference to any matters to which the auditors drew attention by way of emphasis
without qualifying their report, and (iii) did not contain a statement under
Section 498 (2) or (3) of the Companies Act 2006.

The interim statement was approved by the Board of Directors on 2 February 2010.

2 Taxation

A charge for taxation has been included at the effective rate likely to be
applied to the UK result for the full year to 31 May 2010. Deferred tax is
recognised at 28%.


3 Earnings per share

The earnings per share of Murgitroyd Group PLC are calculated by reference to
the earnings attributable to ordinary shareholders divided by the weighted
average number of shares in issue during each period, as follows:

+------------------------------------------------+----------------+----------------+------------+
| | Six months | Six months | Year |
| | ended | ended | ended |
| | 30 November | 30 November | 31 May |
| | 2009 | 2008 | 2009 |
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------------+----------------+----------------+------------+
| Profit for the period attributable to equity | | | |
| holders of the parent | 1,178 | 1,191 | 2,052 |
+------------------------------------------------+----------------+----------------+------------+
| | ________ | ________ | ________ |
+------------------------------------------------+----------------+----------------+------------+
| | | | |
+------------------------------------------------+----------------+----------------+------------+
| Basic weighted average number of shares | 8,484,612 | 8,458,102 | 8,470,636 |
+------------------------------------------------+----------------+----------------+------------+
| Diluted weighted average number of shares | 8,646,595 | 8,601,305 | 8,643,807 |
+------------------------------------------------+----------------+----------------+------------+
| | | | |
+------------------------------------------------+----------------+----------------+------------+
| Basic earnings per share | 13.88p | 14.07p | 24.23p |
+------------------------------------------------+----------------+----------------+------------+
| Diluted earnings per share | 13.62p | 13.84p | 23.75p |
+------------------------------------------------+----------------+----------------+------------+

4 Dividend

The Directors propose to pay an interim dividend of 3p per share (2008: 3p). In
addition the Directors intend, subject to trading results, economic outlook and
the availability of distributable reserves, to recommend a final dividend to
shareholders in respect of the financial year ending 31 May 2010.


Copies of this announcement and the full interim statement will be available,
free of charge for a period of one month, from the Group's Nominated Adviser:

+------------------------------+------------------------------+
| | |
| Noble & Company Limited | Noble & Company Limited |
| 76 George Street | 120 Old Broad Street |
| Edinburgh EH2 3BU | London EC2N 1AR |
| | |
+------------------------------+------------------------------+



KPMG Audit Plc

191 West George Street
Glasgow
G2 2LJ
United Kingdom

Independent review report to Murgitroyd Group PLC
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly report for the six months ended 30 November 2009
which comprises the Condensed Consolidated Income Statement, Condensed
Consolidated Balance Sheet, Consolidated Statement of Cash Flows, Consolidated
Statement of Changes in Equity and the related explanatory notes. We have read
the other information contained in the half-yearly report and considered whether
it contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the company in accordance with the terms of our
engagement. Our review has been undertaken so that we might state to the company
those matters we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company for our review work, for this
report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly report is the responsibility of, and has been approved by, the
directors. The directors are responsible for preparing the half-yearly report in
accordance with the AIM Rules.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the EU. The condensed set of
financial statements included in this half-yearly report has been prepared in
accordance with the recognition and measurement requirements of IFRSs as adopted
by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly report for the
six months ended 30 November 2009 is not prepared, in all material respects, in
accordance with the recognition and measurement requirements of IFRSs as adopted
by the EU and the AIM Rules.

P Galloway
for and on behalf of KPMG Audit Plc
Chartered Accountants

2 February 2010

This information is provided by RNS
The company news service from the London Stock Exchange
END

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