A RECOVERY IN THE BUSINESS TRAVEL SECTOR and continued cost-cutting boosted HRG's 2010/11 pre-tax profits by 16 per cent.
HRG made £32.9 million before tax in the year to March 31, 2011, compared with £28.4m for the same period the previous year. The result was achieved from revenue of £358m, up 7 per cent using comparable exchange rates. Operating margins improved from 10.8 per cent to 11.7 per cent.
HRG chief executive David Radcliffe said client activity had increased by 17 per cent and spend by 23 per cent during the 12-month period, following a "steady recovery across all regions, particularly in Asia Pacific and North America. Radcliffe added that Europe overall had shown "some recovery but said the pace of this varied by country.
Events during the financial year included the Icelandic volcano eruption, soaring fuel prices, the severe winter weather and the Japanese earthquake. HRG said these challenges had highlighted the usefulness of travel management companies.