22nd May 2014 13:16
LONDON (Alliance News) - Corporate services organisation Hogg Robinson Group PLC Thursday said it is continuing with its strategy to reduce its cost base as it reported a fall pretax profit in the full-year, following heavy redundancy costs.
The company which specialises in travel management, expense management and data management underpinned by proprietary technology pretax profit of GBP25.3 million for the six months-ended March 31, down from GBP30.9 million, hit by charges of GBP7.0 million for redundancy costs and onerous lease provisions.
Revenue dipped to GBP340.8 million from GBP343.2 million in the corresponding period, due to adverse currency movements.
Hampshire-based Hogg Robinson said geographically revenue for Europe fell almost 1% as travel spend and activity in Switzerland fell year-on-year mainly due to prior year client losses.
In North America, revenue rose 4.3% year-on-year at constant currency, benefiting from increased client travel spend. HRG said in recent years it has made a number of significant improvements to its operations in North America, principally aimed at improving efficiency and driving forward margin in this "highly competitive market."
However, in Asia Pacific revenue fell 11%. HRG said of the Asian region generally, the past year has been characterised by a slowdown in emerging market and developing economies.
"While there are variations by country, the prevailing trait amongst our Asia Pacific-based clients during the period has been one of caution in terms of their travel activity and related expenditure," said the firm.
Financially, net debt fell to GBP65.3 million from GBP87.0 million.
The company said it is continuing to execute the strategy first announced with its financial year in May 2013. 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.
Despite its woes, the company increased its dividend to 1.58 pence up from 1.5 pence making a total dividend 2.21 pence from 2.10 pence.
Hogg Robinson shares were quoted up 5.2% at 76.00 pence Thursday afternoon.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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