12 December 2022, etc.venues Monument, London
Business Travel Show Europe, presented by The BTN
21 November, London Hilton Metropole
Hogg Robinson Group reported pre-tax profits of £25.2m in its preliminary results for the year ending March 31, 2007.
The figure was an increase of £12.3m on the pre-tax profit for the preceding year. David Radcliffe, HRG's ceo, said the improvement had been achieved "despite the difficult market conditions.
"He added: "We have been able to report revenue growth through good client retention and new client signings which provide a solid foundation for the new financial year.
"We continue to work hard to position the business for the future and are clearly focused on improving the efficiency of service delivery across the Company.
"The economic climate remains uncertain but our positive momentum gives us confidence that theyear ahead will be one of growth.
"The company said that during the year it had had a revenue growth of 6.7% with an organic growth of 2%.
Pre-tax earnings were £40.3m and "in line with recent guidance."
It said the "highlights" of the year had been new business wins "well ahead of the prior year", a client retention rate of 90% and acquisitions which had performed well.
But HRG said its performance in Europe was "mixed" although a restructuring programme had been completed.
It reported an operating profit of £36.2m, up by £2.5m on the previous year and a 2.8% increase in revenue for the continent.
But it added: "Lower profits from German and Nordic SME clients was offset by strong performances in the UK and Switzerland and underscores the resilient nature of our managed client business.
"As the credit squeeze dented client confidence towards the end of the year, we did experience some softening in demand in our EMM and unmanaged SME activities, particularly in the Nordic region and Germany, and this had an effect on the full-year result."
In North America, Hogg said revenue rose by 16% to £65.3m but it had an operating loss of £1.3m compared with an operating profit of £1.8m for the previous year.
In the Asia Pacific region, there was a 35.8% increase in revenue to £19.1m but an operating loss of £1.1m.
For the outlook, HRG said: "Market conditions remain challenging and economic uncertainties exist. "However, we enter the new financial year with a strong pipeline of new prospects and expect to see the benefit from new clients added last year together with our continuing focus on reducing costs flowingthrough to earnings. "We remain cautious about our EMM and SME activities in the short term. Overall, supported by the proven resilience of our managed travel business, we expect to deliver growth this year."