Revenue fell by 7% but underlying profits rose by 15% before tax, according to Hogg Robinson’s preliminary results for the year ending March 31.
The travel management company reported its underlying operating profit margin was up by 1% to 10.8% and net debt was down £7.8 million to £77.5 million. It said client activity levels were recovering and its retention rate remained above 90%, with a “strong pipeline” helping drive growth.
The results show that in Europe margins were maintained despite lower travel activity and in North America there were moves into profit, thanks to a cost reduction programme. The company added that there had been a sharp rise in client adoption of lower-cost technology solutions, improving value to the customer.
HRG chief executive David Radcliffe said: “HRG delivered a strong performance in the face of very challenging conditions which is testimony to the resilience of the business model. We have continued to control our cost base tightly without damaging our ability to benefit from the upturn and by doing so delivered against expectations.
“Our fee-based business model allows us to deliver first-class service and value to a portfolio of clients who remain loyal to HRG. By focusing on excellent service and helping clients control their travel budgets we have maintained our strong client retention rate and secured net new wins.”
