Travel management giant Hogg Robinson has signalled a turnaround in the health of business travel with its latest six monthly financial results ending September 30.
The company reports that client travel spend is up 22% and client retention rate remains above 90%.
Revenue is up 9% at £169.2m “with growth across all travel regions” while underlying operating profit margin is up 7.3% to 11.5%, largely due to operational gearing.
The figures also show net debt has fallen £10.2m from September last year to £85.8m.
HRG’s focus on its technology offering is paying off with customers increasingly asking for online booking capabilities and the company has seen some nice big names added to its client list, including Aviva, Avon and Grant Thornton.
The volcanic ash cloud in the spring actually drummed up business for HRG, says the TMC, as it managed repatriations and other contingency plans. This offset the travel disruption the cloud caused.
Chief executive of Hogg Robinson Group plc David Radcliffe said: “This is a very good set of results with operating profit up by more than 70% and EPS more than double. Our strategy and business model have delivered over the last two years. We have a proven management team, a disciplined approach to cost control and a relentless focus on our customers.
“As a result, we are well placed to leverage our global infrastructure and to take advantage of the improving climate and growth prospects available to us.
“Uncertainty about the global economy will continue but we are encouraged by the current signs of recovery in corporate travel and the board believes that we will be slightly ahead of our previous expectations for the full year.”
by Dinah Hatch
