Corporate travel firm delays floatation

Plans by corporate travel specialist Hogg Robinson to raise an estimated £190m (€283.7m) from a stock market listing were put on ice today.

The group, which handles the travel arrangements for a number of blue-chip companies, said market conditions were not right for the flotation.

Since announcing its intention to issue new shares on September 4, Hogg has seen the FTSE 100 Index fall from 5986 to below 5800 last night.

Hogg, which had hoped to refinance some of its debts following the flotation, said it was still in a position to “implement successfully” its business plan.

The group was taken private in 2000 and is currently majority owned by Permira after the private equity group backed a management buy-out. Permira was expected to sell shares in the flotation.

Shares were priced at between 140p and 220p ahead of the listing, giving Hogg an estimated market value of between £300m (€448.1m) and £450m (€672.1m).

The business was founded in London in 1845 by brothers-in-law Francis Hogg, a wine merchant, and Augustus Robinson, an insurance broker and has grown through acquisition and new business launches.

Since 2000 Hogg has developed three types of services to its clients, relating to flight and hotel bookings, travel management services and corporate and events management.

Clients include Barclays and GlaxoSmithKline, while Credit Suisse signed a three-year contract with the company last week.

At the time of the listing announcement, Hogg Robinson chief executive David Radcliffe said a return to the market represented the next stage in the company’s development.

He added: “A listing will raise the profile of Hogg Robinson Group’s business and support our strategic flexibility as we continue to seek to exploit opportunities for further growth.”