Hogg Robinson Group profit before tax fell from £27.1 million in 2008 to £24.7 million for the year ending March 31.
The group said the second half of the financial year was hit by the economic downturn and market conditions are expected to remain challenging.
“After a strong first-half performance the second half was more challenging as the entire industry felt the full impact of unprecedented economic conditions,†said chief executive David Radcliffe.
“Despite this, the robustness of our business model was evident as our second half revenue contracted by only 8.5% at constant currency. We have taken strong action to align our cost base with the current environment and to underpin profitability whilst not compromising our excellent customer service.
“In the shorter term, we anticipate that current market conditions will continue to be challenging, but our focus remains on the core drivers which have made HRG successful – a proven track record of winning business and delivering an excellent service to help our clients reduce costs.
“Looking further ahead, our strategy is unchanged and we remain well placed to take advantage of the economic recovery when it happens.”
HRG said revenue for the year was up 5.7% to £351.3 million and client retention rate remains above 90%.
It reported a robust performance from UK and German operations and a “successful year in North America for new business which will provide a solid foundation in the face of a continued challenging market backdropâ€.
By Bev Fearis
