Hogg Robinson lifts profits despite competition

Business travel firm Hogg Robinson warned of tougher trading conditions today despite posting improved profits for the year.

The Basingstoke-based firm, whose client roster includes Barclays, HSBC and Rolls-Royce, said current trading was lower than last year – which was boosted by business from last summer’s World Cup – and hampered by a restructuring of the company.

The group also said margins in its transactions business, which carries out flight and hotel bookings for major companies, had come under continued pressure from increased competition.

Despite the caution, Hogg Robinson increased underlying earnings by 9% to £44.1 million for the year to March 31 – in line with expectations – and said trading would pick up in the second half of the year.

The company, which floated last October, is moving away from the more traditional travel booking business to concentrate on higher margin operations such as expense handling services for multinational companies.

Chief executive David Radcliffe said: “Our repositioning and renewed focus has led to a substantial number of client wins.”

Hogg Robinson increased sales by 5% to £311.4m (€463m) over the year and is also looking to grow by acquisitions. The company announced a deal today to buy Belgium-based firm Weinberg Travel for €1.5m.

Credit Suisse analyst Karl Green said the company’s performance “ticked most of the boxes”.

Mr Green said: “The results are likely to be taken as significant reassurance by investors that management can deliver on its promises.”