27th Nov 2013 10:34
LONDON (Alliance News) - Hogg Robinson Group PLC Wednesday said that it anticipates full-year performance in line with expectations as it continues to make progress with its strategy to grow its addressable market and improve its efficiency.
The travel-expense and data-management services company posted a pretax profit of GBP11.4M in the six months ended September 30, down from a restated pretax profit of GBP13.6 million a year before, hit by charges of GBP2.6 million for redundancy costs and onerous lease provisions.
On an underlying basis, pretax profit rose slightly to GBP16.0 million from GBP15.6 million.
Revenue declined marginally to GBP168.4 million compared to a restated revenue of GBP168.9 million in the previous year, as growth in its UK and North America was offset by declines in Europe and Asia. Hogg Robinson also saw gains by its Spendvision travel expense business, where revenue increase by 15% to GBP10.1 million and operating profit by 92% to GBP2.3 million.
The company said it is continuing to execute the strategy first announced with its financial year 2013 results in May. This strategy involves lowering its cost base to realise annualised savings of GBP6.5 million, reducing its number of offices, addressing its pension deficit, and reducing its net debt.
Hogg Robinson also is looking to increase its managed-travel business by expanding its geographical footprint and offering new services, as well as developing a software as a service business.
The company said it had made progress on its strategy in the first half, and it is looking to benefit from recent client wins, some of which will only start to trade on the second half of this financial year.
Hogg Robinson expects the trading environment in the second half to remain broadly similar to the first, anticipating modest recovery in the UK and North America, whilst Europe and Asia are likely to remain weak. Revenue in October was up 1% compared to the previous year, Hogg Robinson said, and November trading had been in line with expectations.
Hogg Robinson raised its interim dividend per share to 0.63 pence, up 5% from 0.60 pence. Shares were trading up 1.0% at 77.50 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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