29th Nov 2016 09:39
LONDON (Alliance News) - Corporate services provider Hogg Robinson Group PLC on Tuesday reported growth in profit and revenue for the first half of its financial year and said it remains on track for the full year despite a less certain outlook.
The firm, which provides travel, payment and expenses management services, said it made a pretax profit of GBP14.0 million in the half to September 30, up 21% from GBP11.6 million a year before.
Revenue grew to GBP163.5 million from GBP155.9 million, up 5.0% and boosted by a weak pound. In constant currencies, revenue was down 3.0%. The firm said its HRG travel management business delivered a robust performance against tough conditions, while its Fraedom software-as-a-service unit has continued to grow and win new contracts.
The profit growth was burnished by Hogg Robinson's operating margin improving to 13.1% from 12.3%, driven by cost savings made in the company's three-year restructuring programme.
The firm declared an interim dividend of 0.715 pence per share, up from 0.68p a year before.
Hogg Robinson said it remains on track in the second half so far and anticipates hitting market expectations for the year to March 2017, though it said the outlook has become less certain following the UK's vote to leave the European Union.
"We've navigated the period following the Brexit referendum with minimal effect so far on our trading. However, we see a tightening in the market as our clients respond to the broader economic uncertainty," said Chief Executive David Radcliffe.
"Following the success of our restructuring actions and technology deployment we are well placed to leverage these achievements and create strategic opportunities to develop both businesses," he added.
Hogg Robinson shares were trading flat on Tuesday at 67.39 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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