HRG reports drop in profits

Solid performance in challenging year - Radcliffe

Hogg Robinson Group (HRG) today (May 28) reported a slight drop in profits for the year ending March 31.

One of the world's biggest travel management companies said its pre-tax profits fell by £9.8m, from £25.2m in 2007-2008 to £15.4m fro the last 12 months.

HRG also reported that its operating profit dipped from £37.9m in 2007-2008 to £34.6m.

The TMC said its revenue during the 12 months rose by 5.7% to £351.3m while it reduced its debt by £25.1m to £85.3m.

During the year, HRG said it client retention rate was above 90% and it had had "continued success" in winning new business, notably in the Asia Pacific region.

Its operations in the UK, where it is the second largest TMC, and Germany were "robust" while it had also consolidated its network across Europe.

In North America, the TMC said it had had a successful year for new business in what was a tough market.

HRG said Spendvision, its expense management software company, increased its revenue by 61% and increased it operating profit by £1.9m.

David Radcliffe, HRG's ceo, said that after a good first half to the year, the second six months were more challenging with the industry feeling the impact of "unprecedented economic conditions."

He added:  Despite this, the robustness of our business model was evident as our second half revenue contracted by only 8.5% at constant currency.

"We have taken strong action to align our cost base with the current environment and to underpin profitability whilst not compromising our excellent customer service."

He said in the short term he expected current market conditions to remain challenging.

"Looking further ahead, our strategy is unchanged and we remain well placed to take

advantage of the economic recovery when it happens," he said.

www.hrgworldwide.com