Hogg Robinson Group PLC
19 March 2008
Hogg Robinson Group plc
("HRG", "the Company" or "the Group")
Hogg Robinson Group plc, the international corporate services company, is
providing the following trading update on its expected performance for the year
ending 31 March 2008.
Since the Interim Management Statement on 29 January 2008, HRG's core managed
clients have continued to trade in line with expectations. However, as
previously flagged, demand in Events and unmanaged SME business has continued to
be weak and results in these areas will fall short of expectations. In addition,
HRG's Spendvision expense management business has experienced some delay in new
clients signing contracts to originally expected timescales as well as
slower-than-expected implementation of contracts with some recently signed
clients. Spendvision however remains well positioned for next year.
The European restructuring programme continues to progress as expected. The
implementation cost of around £2 million is less than originally expected and
should deliver annual savings of around £5 million. Elsewhere within the Group,
further steps are being taken to reduce the cost structure. We anticipate the
cost of this additional restructuring to be in the region of £1 million, some of
which will be spent before the year end.
As a result of these factors, the Board continues to expect revenue growth for
the year ending 31 March 2008 but EBITA is now expected to be lower than the
prior year at around 10% below the market consensus of £45m.
A recent favourable arbitration decision against Kuoni is expected to result in
some additional financial benefit in the coming months, although the process for
rectifying Kuoni's breaches of its agreement with HRG has yet to be finalised.
It is expected that the current dividend policy will remain unchanged.
David Radcliffe, Chief Executive, said:
"This trading setback is disappointing but we are taking, and will continue to
take decisive action to mitigate the effects of the economic downturn and to
ensure that the Group is positioned well for next year."
Hogg Robinson Group +44 (0)1256 312 600
Julian Steadman, Group Finance Director
Angus Prentice, Head of Investor Relations
Bell Pottinger Corporate & Financial +44 (0)20 7861 3232
Mike Davies / Nick Lambert / Andrew Benbow
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
Notes to Editors
Hogg Robinson Group (HRG) is the award-winning international corporate services
company. Founded in 1845, HRG has over 60 years specific corporate travel
expertise. Its corporate services interests include wholly-owned or majority
controlled corporate travel operations in 25 markets throughout Asia Pacific,
Europe and North America. Supported by contracted partners, the HRG worldwide
network now extends to over 100 countries.
Totally committed to a value offering for clients, HRG offers a comprehensive
range of corporate services which include Corporate Travel Management,
Consulting, Expense Management, Events & Meetings Management, and Sports.
This information is provided by RNS
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