News13 Feb 2013 22:14
Hogg Robinson Group plc, the international corporate services company, today
issues its second Interim Management Statement for the year ending 31 March
2013, covering the period from 1 October 2012 to date.
Group performance
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. For the four months to end January, revenue declined by 7% (down
6% at constant currency) versus the prior year. Client travel transaction
activity was lower by 2% while client spend fell by 3% (down 2% at constant
currency).
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.
Outlook
Despite the ongoing uncertainties associated with the macroeconomic
environment, the Board believes HRG will continue to show resilience and
deliver a full-year performance broadly in line with market expectations.
David Radcliffe, Chief Executive of Hogg Robinson Group plc, commented:
"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."
Client activity
As anticipated, market conditions have remained challenging since our last
update at the end of 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.
Financial position
The Group's financial position remains robust. Net debt rose year-on-year, as
expected. At 31 January 2013, net debt was approximately £9m higher than at the
same date last year, principally due to acquisitions made, including the
purchase of the remaining interest in Spendvision (£10m).
There have been no material adverse events or transactions that have impacted
the Group's financial position since 30 September