13 Feb 2014 07:00
13 February 2014
Hogg Robinson Group plc
('HRG', 'the Company' or 'the Group')
INTERIM MANAGEMENT STATEMENT
Hogg Robinson Group plc, the international corporate services company, today issues its second Interim Management Statement for the year ending 31 March 2014, covering the period from 1 October 2013 to date.
Current trading and outlook
Although there continue to be ongoing uncertainties associated with the macroeconomic environment, the Board expects HRG to deliver a full-year performance in line with market expectations.
Trading conditions have remained similar in the second half of the financial year to date to those seen in the first half, with recovery continuing in the UK and North America, while markets elsewhere in Europe and in Asia present a mixed picture and remain generally weak. Sterling's strength against all the major currencies in which the Group's revenues are generated is having some translation impact. For the four months to end January, revenue declined by 2% (unchanged at constant currency) versus the prior year. Client travel transaction activity was higher by 6% while client spend rose by 1% (up 4% at constant currency).
The Group has seen strong growth in domestic rail bookings, particularly in the UK. However, while there are some indications that international air travel activity across our client portfolio is beginning to re-emerge, growth continues to be slow.
David Radcliffe, Chief Executive of Hogg Robinson Group plc, commented:
"Whilst we remain cautious about the pace of recovery and will continue to focus on maintaining a cost base that is appropriate to the market backdrop, we expect to deliver a full-year performance in line with market expectations. Looking further ahead, we continue to make good progress against our strategic actions to grow our business by continuing to evolve our offer and, at the same time, pursue measures to further improve our efficiency."
Financial position
The Group's financial position remains robust and cash generation across the Group has remained strong through the period.
There have been no material adverse events or transactions that have impacted the Group's financial position since 30 September 2013.
- Ends -
Enquiries:
Hogg Robinson Group | +44 (0)1256 312 600 |
Philip Harrison, Group Finance Director | |
Angus Prentice, Head of Investor Relations | |
Tulchan Communications | +44 (0)20 7353 4200 |
Stephen Malthouse | |
Martin Robinson | |
Giles Kernick |
Notes to Editors
Hogg Robinson Group plc (HRG) is the award-winning international corporate services company. Established in 1845 and headquartered in Basingstoke, Hampshire, UK, HRG specialises in travel, expense and data management underpinned by proprietary technology. With a worldwide network that comprises over 120 countries, HRG provides unparalleled global expertise and local knowledge in Europe, North America, Asia Pacific, Africa, Latin America and MEWA. Read the latest HRG newsand search our archives.
www.hrgworldwide.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.