Murgitroyd (MUR:AIM) posts a 14th consecutive year of revenue growth in a strong second half performance from the Glasgow-headquartered patent law specialist.

Revenue totalled £39.8 million in the year to 31 May 2015, an increase of 3.8%, driven by rapid growth in its US network.

UK and European revenues declined ahead of potentially changes to the European patent system, scheduled to come into force in 2017.

Patents filed in any individual European country will be guaranteed across the 25 member states and governed by a European patent court.

The proposed changes have been talked about for as long as 40 years, according to chief executive Keith Young, though there is a precedent in the European Trademark, launched in 1997.

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‘The uncertainty has been challenging but it has been rumbling along for as long as I can remember,’ says Young.

‘We see it as an opportunity because in each of the two most extreme scenarios we’ve looked at I believe we’re uniquely positioned.’

Pricing has yet to be established on the Europe-wide patent scheme, Young added.

Muritroyd's profit in the year to 31 May 2015 increased marginally to £3.1 million thanks mainly to a lower tax charge. Performance looks to have been stronger in Murgitroyd’s second half, a period in which a larger percentage of its work is billed.

Cash flow was weaker than a year earlier because of an increase in work billed but not yet paid by customers.

Sterling, which was lower against the dollar than the year before, also helped results in the last six months.

Issue Date: 07 Sep 2015