HRG has seen its profits fall by 7 per cent as clients have cut back on their travel spending.
The travel management giant made an underlying pre-tax profit of £17.3 million for the six months to the end of September - down from £18.7 million last year.
Revenue fell by 10 per cent to £168.9 million, compared to £186.6 million for the same period in 2011, as HRG’s clients reduced travel spending and transactions.
HRG chief executive David Radcliffe said the results represented a “resilient profit performance in challenging market conditions” and added that it was still on course to make the profits expected by financial analysts for the current financial year.
“Corporates are understandably cautious in their approach to travel but our proven ability to help our clients achieve best value from their travel budgets is reflected in our ongoing strong client retention rate and success in securing net new business wins including Bayer, Pirelli and Unilever,” said Radcliffe.
HRG said that both client travel spending and the number of transactions had fallen by 8 per cent across its global business during the six-month period.
“While most recognise the need to travel, a cautious approach prevails,” said HRG in its report. “A majority of major clients are scrutinising their future travel commitments and have established plans to cut travel spend.
“We saw further evidence in the first half of growth in client adoption of online self-booking of travel, particularly for simpler travel itineraries, as clients continued to seek further cost savings.”
HRG said that it had also noticed greater adoption of “authorisation to travel processes” within companies as well as “more rigorous control and tighter management” to drive greater compliance with travel policies.
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