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HRG positive despite decline in business travel

Business travel transaction activity was down by 2% while spend fell by 3% at Hogg Robinson Group in the four months to the end of January.

Revenue declined by 7% in the period over the same time a year earlier, the company said in an interim management statement this morning.

HRG said market conditions have remained challenging as expected since November.

“Our clients have continued to seek further, incremental cost savings. This plays to HRG’s strengths as clients place heavy reliance on our expertise and experience to help them maximise value from their travel and related expenditure while lowering aggregate spend.

“Increasingly, clients are seeking a more consultative approach to travel and expense management, typically where HRG is rewarded with a share of costs saved on their behalf, and we welcome this emerging trend.”

The company added: “The group has continued to trade broadly in line with management expectations during the period since the announcement of the half-year results on 29 November 2012.

“We remain focused on maintaining a cost base that is appropriate to the market backdrop while ensuring that our usual high standard of client service is not compromised.”

Chief executive David Radcliffe said: “Whilst the market backdrop remains uncertain, Hogg Robinson continues to make progress as clients look to the group for support in helping them to achieve best value from their travel budgets.

“Based on the performance to date and the ongoing work to improve the efficiency of our operations, the board continues to believe that HRG will deliver a full-year performance broadly in line with expectations.”

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