Hogg Robinson Group PLC Trading Statement (9824E)

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RNS Number : 9824E

Hogg Robinson Group PLC

22 July 2016

22 July 2016

Hogg Robinson Group plc

('the Company' or 'the Group')

INTERIM MANAGEMENT STATEMENT

Trading in line with expectations

Ahead of today's Annual General Meeting, Hogg Robinson Group plc, the international corporate services company, announces its first Interim Management Statement for the year ending 31 March 2017, covering the period from 1 April 2016 to date.

Current trading and outlook

Hogg Robinson Group has traded in line with our expectations during the period since the year end. The Board believes the Company will deliver a full-year performance in line with market expectations.

For the three months to 30 June 2016, revenue rose by 2% (3% lower at constant currency) versus the prior year, while client travel transaction activity was down by 3%. Market conditions during the current financial year to date have remained broadly similar to those seen during the second half of last financial year.

In relation to any EU referendum effect, whilst there has been an initial softening in activity, it is too early to assess if there will be any specific, longer-term impact on the Company. However, we enter this period of post-referendum uncertainty in a resilient position and we are confident that our strategic priorities and the actions we are taking will continue to deliver positive results for our clients, our business and our shareholders.

Across its two businesses, HRG (Travel Management) and Fraedom (Technology), the Company provides services and technology to clients which typically operate across multiple countries and continents. While the Company's revenue has some exposure to exchange rate fluctuations, our earnings performance is not materially exposed to exchange rate movements, as operational costs are generally matched or offset by revenues generated in the same local currency.

Our work to restructure our operations and to drive further efficiencies throughout our operations continues as we align our cost base as appropriate.

Financial position

The Company's financial position remains robust and cash generation across the Group has remained as expected through the period.

David Radcliffe, Chief Executive of Hogg Robinson Group plc, commented:

"Despite a more uncertain macroeconomic outlook since the Brexit vote, our travel management business is well positioned to work closely with clients to help them save money and maximise the value of their travel-related expenditure whilst Fraedom, our technology business, is focused on capturing the significant growth opportunity in the payments, expense and travel management markets through the use of its innovative technology.

"We remain on track to deliver a full-year performance in line with market expectations and are confident that our strategic priorities and the actions we are taking will continue to deliver positive results for our clients, our business and our shareholders."

- Ends -

Enquiries:

 
                                     [phone] 
 Hogg Robinson Group                  600 
 Michele Maher, Chief Finance 
  Officer 
 Angus Prentice, Head of Investor 
  Relations 
 
                                     [phone] 
 Tulchan Communications               4200 
 Stephen Malthouse 
 

Notes to Editors

Hogg Robinson Group plc is an international corporate services company. Established in 1845 and headquartered in Basingstoke, Hampshire, UK, the Company specialises in travel, expense, payments and data management underpinned by proprietary technology. With a worldwide network that comprises over 120 countries, the Company provides unparalleled global expertise and local knowledge in Europe, North America, Asia Pacific, Africa, Latin America and MEWA.

www.hoggrobinson.com

Forward-looking statements

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 plc. 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 the Company, including amongst other things, the Company'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, the Company'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. The Company 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 jurisdiction.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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July 22, 2016 05:14 ET (09:14 GMT)