Murgitroyd shares boosted by solid results

Figures from the European Patent Office show that demand has been resilient, with patent filings up 3 per cent last year, although this was a slowdown on the 10 per cent growth reported in 2010 – which was a record year. The lion's share of new filings still come from overseas, with 62 per cent originated outside Europe, driven by the US and Japan, which account for a combined 44 per cent of applications. Although competition among lawyers drove down prices and caused Murgitroyd's gross margin to slip from 60.1 to 57.7 per cent, this was more than offset by greater efficiency on staff costs, and operating profits rose over 20 per cent on the back of the double digit revenue growth.

Brewin Dolphin upgraded full-year EPS forecasts by 4 per cent to 31.1p and sees scope for further upgrades if this momentum is maintained in the second half. There could be good news on the dividend, too, as chief executive and finance director Keith Young says the board will continue to focus on a progressive dividend policy when the company reports full-year figures.