Half-year profits at Hogg Robinson Group were down 7% to £17.3 million, the travel management company reported this morning.
This was based on revenue down by 10% to £168.9 million in the six months to September 30 over the same period last year.
HRG said it expected to deliver a full-year performance “broadly in line with current market expectations”.
The result came as business travellers chose cheaper travel and accommodation options.
This reflected an increasingly cautious approach to travel with many clients reducing discretionary spending, HRG said.
“Most of our clients are asking us to help them prioritise their travel plans and many are imposing restrictions on their staff through tighter enforcement of travel policy.
In response to the lower transaction activity, we have taken action to reduce our own operating costs and continue to seek self-help measures designed to further reduce our costs and protect margin.”
Chief execurtive David Radcliffe said: “HRG has delivered a resilient profit performance in challenging market conditions and in the face of more demanding year-on-year comparatives.
“This performance reflects the strength of our business model and our ongoing work to improve the efficiency of our operations and ensure that our cost base is appropriate for the market backdrop.
“We focused on this during the first half and will continue to do so throughout the second half whilst not compromising our excellent customer service.”
He added: “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.”