Murgitroyd Group PLC Acquisition and Trading Update (1329C)
June 24 2016 - 1:00AM
UK Regulatory
TIDMMUR
RNS Number : 1329C
Murgitroyd Group PLC
24 June 2016
24 June 2016
Murgitroyd Group PLC
Acquisition and trading update
Acquisition
The Board of Murgitroyd Group PLC ("the Group") announces that
its principal operating subsidiary, Murgitroyd & Company
Limited ("Murgitroyd"), yesterday, completed the acquisition of
certain trade and assets from Dallas-based MDB Capital Group, LLC
("MDB") and Managua-registered Patentvest S.A. ("Patentvest"),
including employee and client contracts of MDB's IP Software &
Services Group.
The consideration of $2.43m, paid at completion, included the
value of the tangible assets, IT systems and records, and will be
part-funded through a new term loan facility with the balance
funded from existing Group resources. The transaction is
anticipated to be broadly earnings neutral in its first year. In
the twelve months to 31 May 2016, MDB's IP Software & Services
Group generated gross revenues of approximately $860,000.
US Patent Attorneys, Michael Chernoff and John Wootress, based
in the USA and Nicaragua respectively, along with eighteen staff,
including sixteen Managua-based Patent engineers predominantly
engaged in US Patent searching, have transferred to Murgitroyd.
Commenting on the acquisition, Chairman of the Group, Ian
Murgitroyd, said: "This acquisition reflects our strategy of
offering a comprehensive suite of IP advisory and support services
to global companies and international law firms in the Group's
largest geographical market, the USA, with the objective of
increasing Murgitroyd's market share of high value European Patent
Attorney services purchased by them."
Mr Chernoff, MDB's Chief Intellectual Property Officer, who
joins Murgitroyd as Director, IP Strategy and Portfolio Management,
was previously Director of Legal Services, Patent Operations at
Accenture, and also has experience as a Patent Examiner at the
United States Patent and Trademark Office. Mr Wootress, Director of
Intellectual Property at MDB, joins Murgitroyd as Director, IP
Research and Analysis. Prior to joining MDB, he was Deputy General
Counsel for Belkin International, Inc.
Commenting on the opportunities arising from the transaction,
Group Deputy Chairman, and Murgitroyd CEO, Edward Murgitroyd, said:
"I am delighted that Murgitroyd is extending its IP support
services offering through the expansion of its IP strategy and
Patent searching capabilities with the addition of Michael and
John, and their team, and I believe this will augment existing
sales channels used to win significant, higher-margin, European
Patent Attorney work."
Trading update
The Group also today announces a trading update for the
financial year ended 31 May 2016.
Consistent with its Interim Results announced in February, the
Group has continued to see revenue growth in the second half of the
financial year. The Board therefore expects to report revenue in
excess of GBP42m for the financial year ended 31 May 2016, and
profit before taxation broadly in line with market
expectations.
Notwithstanding the acquisition announced above it is also
expected that again an increased final dividend will be
recommended.
Chairman
The announcement of preliminary annual results in September 2015
included a statement to the effect that Group Chairman Ian
Murgitroyd intended to move from Executive to non-Executive
Chairman. The Board now confirms that this transition will take
place with effect from the conclusion of the Annual General
Meeting, in October 2016.
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/Emma Crawshaw, Cardew Group T: 020 7930 0777
This information is provided by RNS
The company news service from the London Stock Exchange
END
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