Murgitroyd on track to report pre-tax profits of just under £4.1m

In a trading update, the group said it expects profits for the year to 31 May to be line with market expectations and up from £3.8m in the previous year.

The firm had record year-on-year cash balances of just over £3m and a current cash balance of more than £3.2m.

Its board plans to recommend a final dividend of 14.5p per share, which would result in a total dividend payment of 21p for year, compared the previous year’s 17p.

The results will include an exceptional provision of £408,000 for an unnamed client.

Murgitroyd added: “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 per cent of which relates to financial years 2016 and earlier, the board considers that it is prudent to make full provision at this time.”