31 Aug 2018 12:33
Murgitroyd Group PLC ("the Group")
Trading update statement and notice of final results
The Board of Murgitroyd Group PLC issues the following trading update in respect of the financial year ended 31 May 2018.
The Board is pleased to announce that it expects to report underlying profit before income tax for the year ended 31 May 2018 in line with existing market expectations at £4.08m (2017: £3.80m). Group operating cashflow has remained strong with record year end cash balances of £3.03m and current cash balances of in excess of £3.2m on which basis, in line with the Group's commitment to a progressive dividend policy, the Board intends to recommend payment of a final dividend of 14.5p pence per share (2017: 12p pence) which, if approved, will result in a total dividend payment for the year of 21p pence per share (2017: 17p pence).
The results for the period will include an exceptional provision of £408,000, net of tax relief, agreed in consultation with the Group's Auditors in relation to a single aged debtor balance. The client in question is a longstanding client of the Group who has traded with it for over 21 years, remitting over £1.1m in cash over this time period. The client continues to pay, does not dispute the debt, and has formally confirmed to the Group its intention to settle the balance in full as and when resources permit. However in view of the quantum of current payments, and the age of the current balance, 80% of which relates to financial years 2016 and earlier, the Board considers that it is prudent to make full provision at this time.
Notwithstanding the provision, reported basic earnings per share for the year ended 31 May 2018 are 5% higher year-on-year at 29.7p, and based on underlying earnings are 21% higher.
The Group will announce results for the financial year ended 31 May 2018 on 11 September 2018.
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