25 Jul 2011 12:00
25 July 2011 Hogg Robinson Group plc (`HRG', `the Company' or `the Group') INTERIM MANAGEMENT STATEMENT
Ahead of today's Annual General Meeting, Hogg Robinson Group plc, the international corporate travel services company, announces its first Interim Management Statement for the year ending 31 March 2012, covering the period from 1 April 2011 to date.
Group performance
Trading for the Group during the first quarter of the financial year continued to be in line with management's expectations. For the three months to the end of June, revenue increased by 9% (up 6% at constant currency), with client travel transaction activity up by 8% and client spend up by 14% (up 10% at constant currency).
We believe we have the appropriate level of capacity to continue to deliver excellent service to our existing clients. Our new business pipeline remains strong, both from potential new clients as well as from additional service opportunities with existing clients.
Outlook
The Board believes HRG will continue to show strong progress and deliver a full-year performance in line with expectations.
David Radcliffe, Chief Executive of Hogg Robinson Group plc, commented:
"We have made a good start to the financial year, demonstrating the value of HRG's comprehensive and bespoke travel management solutions for our corporate clients. Our differentiated, technology-led offering continues to deliver a first class service, ensuring very high client retention levels. We continue to add to the customer base and the pipeline of opportunities is strong.
"Whilst we remain mindful of economic conditions, we are encouraged by the good growth during the first quarter which is in line with our expectations and look forward to the rest of the year with confidence."
Market overview
Market conditions have remained generally stable since our last update to the market on 25 May 2011, with no significant changes in airline passenger trends reported by the International Air Transport Association (IATA) and global hotel occupancy trends reported by STR Global.
Client activity
Clients remain cost conscious while they continue to travel. Policy compliance and traveller security are also generally high priorities.
With regard to new business, we are pleased to have welcomed a number of new clients to our portfolio since the start of the financial year while extending our existing relationships with others. These include AIG, CGI and Polarcus. Noteworthy contract renewals include Ergon Energy, Pfizer, Roche and Wells Fargo.
We remain committed to delivering excellent service to our clients at all times and believe that our full-service offering, including superior proprietary technology solutions, offers significant opportunities for the continued growth of the business in the future.
Financial position
The Group's cash generation and balance sheet remain robust. At 30 June 2011, net debt was £20m lower than at the same date last year. There have been no material adverse events or transactions that have impacted the Group's financial position since 31 March 2011.
Funding
The Group has £220m of committed credit lines, with £190m committed until 2014 and £30m repayable by 2018. Based on our current forecasts, the Board believes that these facilities provide the Group with sufficient headroom.
- Ends - Enquiries:Hogg Robinson Group +44 (0)1256 312 600 Julian Steadman, Group Finance Director Angus Prentice, Head of Investor Relations Tulchan Communications +44 (0)20 7353 4200 David Allchurch Stephen Malthouse Martin Robinson Notes to Editors
Hogg Robinson Group plc (HRG) was established in 1845 and is an international corporate travel services company with headquarters located in Basingstoke, Hampshire, UK. The HRG worldwide network, including contracted partners, extends to over 120 countries.
HRG's focus on its clients is underpinned by four differentiators - size and scope, people, technology and flexible service offering. The company has experienced management and skilled operators together with proprietary technology which has been developed in-house. HRG offers a range of services around the globe to deliver value, cost savings, efficiency and innovation, without compromise.
www.hoggrobinsongroup.com
Forward-looking statements
This announcement may contain forward-looking statements with respect to certain of the plans and current goals and expectations relating to the future financial conditions, business performance and results of Hogg Robinson Group. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond the control of HRG, including amongst other things, HRG's future profitability, competition with the markets in which the Company operates and its ability to retain existing clients and win new clients, changes in economic conditions generally or in the travel and airline sectors, terrorist and geopolitical events, legislative and regulatory changes, the ability of its owned and licensed technology to continue to service developing demands, changes in taxation regimes, exchange rate fluctuations, and volatility in the Company's share price. As a result, HRG's actual future financial condition, business performance and results may differ materially from the plans, goals and expectations expressed or implied in these forward-looking statements. HRG undertakes no obligation to publicly update or revise forward-looking statements, except as may be required by applicable law and regulation (including the Listing Rules). No statement in this announcement is intended to be a profit forecast or be relied upon as a guide to future performance.
The release, publication, transmission or distribution of this announcement in, into or from jurisdictions other than the United Kingdom may be restricted by laws and therefore persons in such jurisdictions into which this announcement is release, published, transmitted or distributed should inform themselves about and observe such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities laws of such jurisdiction.
XLON