HOGG ROBINSON | Interim Management Statement | RNS
25 July 2011
Hogg Robinson Group plc
(`HRG', `the Company' or `the Group')
INTERIM MANAGEMENT STATEMENT
Ahead of today's Annual General Meeting, Hogg Robinson Group plc, the
international corporate travel services company, announces its first Interim
Management Statement for the year ending 31 March 2012, covering the period
from 1 April 2011 to date.
Trading for the Group during the first quarter of the financial year continued
to be in line with management's expectations. For the three months to the end
of June, revenue increased by 9% (up 6% at constant currency), with client
travel transaction activity up by 8% and client spend up by 14% (up 10% at
We believe we have the appropriate level of capacity to continue to deliver
excellent service to our existing clients. Our new business pipeline remains
strong, both from potential new clients as well as from additional service
opportunities with existing clients.
The Board believes HRG will continue to show strong progress and deliver a
full-year performance in line with expectations.
David Radcliffe, Chief Executive of Hogg Robinson Group plc, commented:
"We have made a good start to the financial year, demonstrating the value of
HRG's comprehensive and bespoke travel management solutions for our corporate
clients. Our differentiated, technology-led offering continues to deliver a
first class service, ensuring very high client retention levels. We continue to
add to the customer base and the pipeline of opportunities is strong.
"Whilst we remain mindful of economic conditions, we are encouraged by the good
growth during the first quarter which is in line with our expectations and look
forward to the rest of the year with confidence."
Market conditions have remained generally stable since our last update to the
market on 25 May 2011, with no significant changes in airline passenger trends
reported by the International Air Transport Association (IATA) and global hotel
occupancy trends reported by STR Global.
Clients remain cost conscious while they continue to travel. Policy compliance
and traveller security are also generally high priorities.
With regard to new business, we are pleased to have welcomed a number of new
clients to our portfolio since the start of the financial year while extending
our existing relationships with others. These include AIG, CGI and Polarcus.
Noteworthy contract renewals include Ergon Energy, Pfizer, Roche and Wells
We remain committed to delivering excellent service to our clients at all times
and believe that our full-service offering, including superior proprietary
technology solutions, offers significant opportunities for the continued growth
of the business in the future.
The Group's cash generation and balance sheet remain robust. At 30 June 2011,
net debt was 20m lower than at the same date last year. There have been no
material adverse events or transactions that have impacted the Group's
financial position since 31 March 2011.
The Group has 220m of committed credit lines, with 190m committed until 2014
and 30m repayable by 2018. Based on our current forecasts, the Board believes
that these facilities provide the Group with sufficient headroom.
- Ends -
Hogg Robinson Group +44 (0)1256 312 600
Julian Steadman, Group Finance Director
Angus Prentice, Head of Investor Relations
Tulchan Communications +44 (0)20 7353 4200
Notes to Editors
Hogg Robinson Group plc (HRG) (LSE: HRG) was established in 1845 and is an
international corporate travel services company with headquarters located in
Basingstoke, Hampshire, UK. The HRG worldwide network, including contracted
partners, extends to over 120 countries.
HRG's focus on its clients is underpinned by four differentiators - size and
scope, people, technology and flexible service offering. The company has
experienced management and skilled operators together with proprietary
technology which has been developed in-house. HRG offers a range of services
around the globe to deliver value, cost savings, efficiency and innovation,
This announcement may contain forward-looking statements with respect to
certain of the plans and current goals and expectations relating to the future
financial conditions, business performance and results of Hogg Robinson Group.
By their nature, all forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances that are beyond the
control of HRG, including amongst other things, HRG's future profitability,
competition with the markets in which the Company operates and its ability to
retain existing clients and win new clients, changes in economic conditions
generally or in the travel and airline sectors, terrorist and geopolitical
events, legislative and regulatory changes, the ability of its owned and
licensed technology to continue to service developing demands, changes in
taxation regimes, exchange rate fluctuations, and volatility in the Company's
share price. As a result, HRG's actual future financial condition, business
performance and results may differ materially from the plans, goals and
expectations expressed or implied in these forward-looking statements. HRG
undertakes no obligation to publicly update or revise forward-looking
statements, except as may be required by applicable law and regulation
(including the Listing Rules). No statement in this announcement is intended to
be a profit forecast or be relied upon as a guide to future performance.
The release, publication, transmission or distribution of this announcement in,
into or from jurisdictions other than the United Kingdom may be restricted by
laws and therefore persons in such jurisdictions into which this announcement
is release, published, transmitted or distributed should inform themselves
about and observe such restrictions. Any failure to comply with the
restrictions may constitute a violation of the securities laws of such