SHARES in Murgitroyd, the patent and trademark attorney group, have plunged following a nine per cent fall in profits in its latest financial year.

The Glasgow-based company, which employs around 240 staff in 15 offices around the world, cited foreign currency headwinds as it posted pre-tax profits of £4.13 million for the year ended May 31.

The share price dropped more than seven per cent in early trading before closing down 27.5p - or 5.14 per cent - at 507.5p.

While earnings fell, Murgitroyd maintained the sequence of turnover growth it has seen since it floated on the London Stock Exchange in 2001.

Turnover rose by 6.6 per cent to £38.4 million, reflecting the firm's continuing advance in the US.

The company, which set up an office in Durham, North Carolina, in 2006, saw revenue from clients across the Atlantic increase by £2.7 million to £12.9m last year.

Chairman Ian Murgitroyd described the profit drop as disappointing, but signalled the firm's confidence in its ability to win new business.

And in spite of the profit reversal, he highlighted its commitment to delivering an "aggressive dividend policy".

Murgitroyd is proposing a final dividend of 9.5 per share, leading to a total dividend of 13.25p for the year - up six per cent year on year.

Noting the currency headwinds, chief executive Keith Young said: "Our results in the face of that are pretty good because we continue to show really strong growth and, importantly, it's growth in the areas we are actually targeting.

"That cause and effect is good. We are continuing to invest in areas and to see those areas come to fruition is good and encouraging.

"At the same time we continue to see the return of very strong cash flow to investors. The evolution [of client base] has not been at the expense of growth or a good return to our shareholders."

The continuing sales and marketing push by Murgitroyd in the US, where the business is led by deputy chairman Ed Murgitroyd, is continuing to produce results.

Murgitroyd has seen revenue increase by more than 220 per cent in the US since 2010. In that time it has seen its historic UK client base contract from its peak of £19.5m in 2011 to its current £18.3m.

However the company, which signalled its commitment to continue investing in people, business development and internal systems, noted the effects of pressure on prices across the board.

Mr Young said: "Naturally, if you are targeting much larger corporate clients then they have a bigger pricing impact.

"The prices that they demand are less, but of course the volumes are greater.

"The challenge for us is how we continue to be able to make those price expectations, while continuing to generate good earnings on the back of it."

The company's latest results come shortly after its chairman was among the 120 business leaders in Scotland who signed a letter stating the economic case for independence had not been made.

Mr Young insisted the company was neutral on the issue of the independence referendum, but noted its geographical presence throughout the UK means it is positioned well to deal with a Yes or No vote.

He said this would be equally be true should there be a referendum on EU membership in the UK.

Asked how IP law might be affected in the event of a Yes vote, Mr Young said: "The answer is that it is an unknown, along with many of the specifics. We've asked the questions, and we accept the answers at this point in time are largely unknown.

"IP is no different from many areas of business in that regard."

Murgitroyd employed 242 staff over the year, up from a figure of 240 in 2013.

Attorney numbers fell by three, with the decrease reflecting the increase in the level of work being carried out by specialist formalities staff and paralegals.

Mr Murgitroyd added: "Whilst the focus remains on organic growth, the board also continues to believe appropriate acquisitions to be complementary to the group's long-term objective where these are assessed to be immediately earnings enhancing."