24 Jan 2017 07:00
Murgitroyd Group PLC ("the Group")
Trading update statement and notice of interim results
The Board of Murgitroyd Group PLC issues the following trading update in respect of the financial year ending 31 May 2017.
The Group's earnings for the first half of the financial year were, given the impact of the previously announced acquisition completed on 23 June 2016, always expected to be lower than last year's equivalent level.
However, the combination of the acquisition, a significant increase in the level of investment in business development, sales and marketing, and lower than anticipated revenue growth means that interim earnings are also behind management's budgeted level.
The Board, cognisant of current macro-economic uncertainty, has also concluded that the implied improvement in operating performance during the remainder of the financial year necessary to meet current market forecasts is unlikely to be delivered and, as a result, that the outcome for the full year will fall short of market forecasts, and likely see reduced full-year 2017 earnings.
Operating cash flow, however, remains strong. Accordingly, the Board expects to announce a modest increase in dividend at the interim stage, consistent with its commitment to a progressive dividend policy.
The Group will provide a detailed update on the current trading position and outlook within the interim results statement expected to be released on 30 January 2017.
For further information, please contact:
Keith Young, Murgitroyd Group PLC T: 07802 951913
Sandy Fraser, N+1 Singer (NOMAD and Broker) T: 0207 496 3000
Nadja Vetter, Cardew Group T: 07941 340436
Emma Crawshaw, Cardew Group T: 07971 468308
Cardew Group T: 0207 930 0777