Hogg Robinson Group Regulatory News (HRG)

19 Mar 2008 08:10

Hogg Robinson Group PLC19 March 2008 Hogg Robinson Group plc ("HRG", "the Company" or "the Group") TRADING UPDATE Hogg Robinson Group plc, the international corporate services company, isproviding the following trading update on its expected performance for the yearending 31 March 2008. Since the Interim Management Statement on 29 January 2008, HRG's core managedclients have continued to trade in line with expectations. However, aspreviously flagged, demand in Events and unmanaged SME business has continued tobe weak and results in these areas will fall short of expectations. In addition,HRG's Spendvision expense management business has experienced some delay in newclients signing contracts to originally expected timescales as well asslower-than-expected implementation of contracts with some recently signedclients. Spendvision however remains well positioned for next year. The European restructuring programme continues to progress as expected. Theimplementation cost of around £2 million is less than originally expected andshould deliver annual savings of around £5 million. Elsewhere within the Group,further steps are being taken to reduce the cost structure. We anticipate thecost of this additional restructuring to be in the region of £1 million, some ofwhich will be spent before the year end. As a result of these factors, the Board continues to expect revenue growth forthe year ending 31 March 2008 but EBITA is now expected to be lower than theprior year at around 10% below the market consensus of £45m. A recent favourable arbitration decision against Kuoni is expected to result insome additional financial benefit in the coming months, although the process forrectifying Kuoni's breaches of its agreement with HRG has yet to be finalised. It is expected that the current dividend policy will remain unchanged. David Radcliffe, Chief Executive, said: "This trading setback is disappointing but we are taking, and will continue totake decisive action to mitigate the effects of the economic downturn and toensure that the Group is positioned well for next year." -Ends- Enquiries Hogg Robinson Group +44 (0)1256 312 600Julian Steadman, Group Finance DirectorAngus Prentice, Head of Investor Relations Bell Pottinger Corporate & Financial +44 (0)20 7861 3232Mike Davies / Nick Lambert / Andrew Benbow This announcement may contain forward-looking statements with respect to certainof the plans and current goals and expectations relating to the future financialconditions, business performance and results of Hogg Robinson Group. By theirnature, all forward-looking statements involve risk and uncertainty because theyrelate to future events and circumstances that are beyond the control of HRG,including amongst other things, HRG's future profitability, competition with themarkets in which the Company operates and its ability to retain existing clientsand win new clients, changes in economic conditions generally or in the traveland airline sectors, terrorist and geopolitical events, legislative andregulatory changes, the ability of its owned and licensed technology to continueto service developing demands, changes in taxation regimes, exchange ratefluctuations, and volatility in the Company's share price. As a result, HRG'sactual future financial condition, business performance and results may differmaterially from the plans, goals and expectations expressed or implied in theseforward-looking statements. HRG undertakes no obligation to publicly update orrevise forward-looking statements, except as may be required by applicable lawand regulation (including the Listing Rules). No statement in this announcementis intended to be a profit forecast or be relied upon as a guide to futureperformance. Notes to Editors Hogg Robinson Group (HRG) is the award-winning international corporate servicescompany. Founded in 1845, HRG has over 60 years specific corporate travelexpertise. Its corporate services interests include wholly-owned or majoritycontrolled corporate travel operations in 25 markets throughout Asia Pacific,Europe and North America. Supported by contracted partners, the HRG worldwidenetwork now extends to over 100 countries. Totally committed to a value offering for clients, HRG offers a comprehensiverange of corporate services which include Corporate Travel Management,Consulting, Expense Management, Events & Meetings Management, and Sports. www.hoggrobinsongroup.com This information is provided by RNS The company news service from the London Stock Exchange