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There's a lot to like about Murgitroyd based on these results:
1. Prudent management who are not afraid to invest in the business but otherwise committed to a progressive dividend policy and paying out surplus capital
2. Dividend has grown 50% odd in the space of four years and by 23.5% in the last year alone. Despite a strong run up in the SP dividend yield remains just under 3% - not bad in today's market
3. Brexit hedged. Increasingly diversified international revenue stream that on balance will benefit from any further GBP weakness
4. 50% gross margins, Mid-teen ROCE, net cash positive balance sheet, well invested asset base
On the flip side the missing piece of the puzzle is revenue growth, without which it's hard to see the shares making serious further progress from these levels. If mgmt could just build some revenue momentum the share could really fly on a mid-term basis. In the interim an interesting hold for those looking for a defensive, good dividend payer to diversify a portfolio.
Huge rise due to Questor in Telegraph
Sept 15 - no reason why directors sold down 15 months ago and recent net cash position likely to entice divi chasers!
Murgitroyd shares are rated at 12.7 times forecast earnings for 2013-14. That looks cheap compared with peer company RWS, whose shares trade on 18 times earnings, which is also the rating for the support services sector. That said, the share price is at a six-year high of 480p and within touching distance of its all-time high (520p). It's also difficult to deal in any quantity of shares. Still, if shares in a niche business with steady growth prospects are a sensible proposition, then Murgitroyd fits the bill...........but as always dyor and good luck.......
Keith Young, chief executive, says the reason behind the rising profitability is that Murgitroyd is getting more work done by its own patent attorneys. This reduces the amount they have to spend on costly external advisors in so-called disbursements, which go into the cost of sales. Encouragingly for investors, Murgitroyd increased its number of qualified attorneys during the first half from 64 to 67. True, there is some uncertainty on the horizon. The European Union recently reached agreement on the Unified Patent Court. This could greatly reduce the number of patent filings. There will no longer be a requirement to file patents in each EU country, as only one EU-wide filing will be required. Mr Young is unfazed. He says the new court will not open until 2014 at the earliest and, even when it does, it is unclear whether multi-nationals will prefer EU-wide patents to the existing tried-and-tested system. He doesnt anticipate a significant hit on revenues.
ORD PRICE: 480p MARKET VALUE: 42m TOUCH: 465-480p 12-MONTH HIGH: 480p LOW: 320p DIVIDEND YIELD: 2.7% PE RATIO: 13 NET ASSET VALUE: 256p NET DEBT: 13%
Growth overseas is an important element of Murgitroyds plans. The US business has two offices and client income there rose by 9.5 per cent in the first half of 2012-13. The first-half results also showed that, despite a slight fall in group revenue, gross profit margins improved from 58 to 60 per cent, feeding through to a 3 per cent rise in pre-tax profits to 2.27m, allowing management to boost the interim dividend 7 per cent to 3.75p.
Murgitroyd is a steady operator with a good track record. This is because despite - or perhaps because of - the economic gloom, organisations are keen to defend the intellectual property of their products from attack. Equally important, companies in Asia are scrambling to have their technology recognised and defended in Europe and the US, which are often their most important export markets. Latest figures from the European Patent Office (EPO) bear this out. Preliminary statistics for 2012 reported European Patent applications up 5.7 per cent to a record 258,000, and almost two-thirds of these came from outside Europe, with a quarter coming from the US.
What job would a genius choose? That's a pertinent question, and we know the answer. Albert Einstein started his working life as a patent clerk for its job security and reliable income. The reliable income is exactly why we think investors should take a close look at patent and trademark attorney Murgitroyd (MUR), whose share rating is far below the only similar quoted company on the London market................
Profit before income tax rose 3.0 per cent to 2.27m pounds at AIM-listed European Patent and trademark attorney Murgitroyd, an interim management statement from the company has disclosed. The company recorded a 2.0% rise in gross profit to �10.6m and a 60% rise in gross margin, compared to a 58% rise in the previous year. Basic earnings per share were up 7.9% to 18.68p and the group proposed an interim dividend of 3.75p per share. Commenting on the group's results, Ian Murgitroyd, Group Chairman, said: "Increased activity is reflected in a rise in both profitability and earnings per share for the 12th consecutive interim period. "While Revenue is down 2%, the more meaningful gross profit revenue net of disbursements is up 2%. We remain confident in Murgitroyd's ability to progress in the current macro-economic climate, and the Group continues to invest in both direct business development activities that will generate sustainable new business, as well as in its systems and people."
"Although we remain cautious in light of the uncertain economic environment, we are confident in the group's ability to continue to generate organic growth. Tight cost control and maximising the funds available to invest in direct business development, systems improvement and efficiencies to drive competitive pricing remain priorities for the Group as we pursue growth," said Ian Murgitroyd, Chairman of the Scottish company. Cash and cash equivalents at the end of the reporting period totalled £0.92m, up from £0.73m the year before, giving the group firepower to consider acquisitions, although the Chairman said the focus will continue to be on growing organically.
Patent and trade mark attorney Murgitroyd Group bragged of an eleventh consecutive year of increased turnover and profitability since floating on AIM in 2001. Revenue in the year to May 31st rose 7.5% to £35.7m from £33.2m the year before. Profit before tax, before the impact of property valuations, climbed 10.3% to £4.43m from the previous year's £4.04m. The group's annual revaluation of its head office building led to a paper gain of £30,000. Adjusted earnings per share shot up 19.3% to 36.4p from 30.5p the year before, paving the way for an 11.6% increase in the full-year dividend to 12p from 10.75p. The comparatively large year-on-year increase in earnings per share arises in part because of the impact of the prior year adjustments to overseas tax in 2011. The group said the market for trade mark applications is buoyant in Europe, while patent filings are also growing. The group is also expecting to accommodate an increase in activity resulting from the UK Government's Patent Box initiative that will provide a Corporation Tax reduction to companies earning income from qualifying Intellectual Property Rights such as UK Patents.
Outlook Although we remain cautious in light of the uncertain economic environment, we are confident in the Group's ability to continue to generate organic growth. Tight cost control and maximising the funds available to invest in direct business development, systems improvement and efficiencies to drive competitive pricing remain priorities for the Group as we pursue growth. The Board will consider acquisition opportunities if they are complementary to the Group's existing offering and immediately earnings enhancing. The focus will however be on growing organically and continuing to generate value for shareholders. We continue to believe that Murgitroyd remains able to generate long-term growth and value for shareholders.
Ian Murgitroyd, Chairman of Murgitroyd Group PLC said: "I am pleased to report that Murgitroyd has continued to deliver an increase in turnover and profitability for the eleventh consecutive year since its flotation in 2001. While we remain cautious, due to the uncertain macro-economic environment, we continue to invest in the business and the Board remains confident that Murgitroyd can continue on this growth trajectory to deliver value to shareholders."
Preliminary Results for the year ended 31 May 2012 Murgitroyd (AIM:MUR), the European Patent and Trade Mark Attorney, is pleased to announce its audited results for the year ended 31 May 2012. Highlights · Turnover increased by 7.5% to £35.7m (2011: £33.2m) · Operating profit increased* by 9.2% to £4.5m (2011: £4.1m) · Profit before income tax* increased by 10.3% to £4.4m (2011: £4.0m) · Basic earnings per share* of 36.4p (2011: 30.5p) an increase of 19.3% · Basic earnings per share of 36.8p (2011: 31.1p) · Proposed final dividend of 8.5p per share, giving a total dividend for the year of 12p (2011: 10.75p), an increase of 11.6% year on year * before impact of property revaluations
http://www.investegate.co.uk/Article.aspx?id=201209100700058310L
N+1 Brewin reiterated its "buy" recommendation for Murgitroyd (MUR), with a 415p target price. The patent attorney has achieved 11 consecutive years of growth and the broker added that market conditions improved over 2010 and 2011 with the number of European patent filings rising 11% and 3% respectively. Brewin noted that the 62% of filings in Europe originate from other continents and approves of the group's international expansion, with offices established in Japan and the US. Shares in Murgitroyd edged down by 1p to 350p
Came across this one on a 12 month breakout chart. Research looks encouraging. Market Cap 30 Mill. Plenty of room with debt facilities. Revenue for first 6 months of year £18M +13%. Profit for first 6 months: £2.2M +23% 11 consecutive interim period growth on sales. Massive cost cutting exercise. Looks undervalued to me with that Market Cap. Anyone have any insight on these?
Revenues at Murgitroyd Group (MUR) rose 13% to 33.2 million pounds in the year ended 31st May 2011, while pre-tax profits rose 8.7% to 4 million pounds, following expansion into Tokyo, San Francisco, and Munich. The board believes that despite volatile trading conditions, the patent and trade market attorney can generate value for shareholders both organically and through acquisitions. The group proposed a 7.25p final dividend per share, giving a total dividend of 10.75p, up 7.5% on the year.
Lost loads with this pile of tosh im lucky I'm out...sell sell sell
Feel for you. Don't let any Broker talk you into a Share. I have heard other stories regarding this outfit. Best to do your own research. Even the best of Brokers will try and cream percentages from us all. Good luck
I got in this on the persistance of a hoodless brennan broker. Lost a tidy sum!!!!