Hogg Robinson Group PLC Trading Statement (2305X)

TIDMHRG

RNS Number : 2305X

Hogg Robinson Group PLC

20 February 2017

20 February 2017

Hogg Robinson Group plc

('the Company' or 'the Group')

INTERIM MANAGEMENT STATEMENT

Trading in line and positioned to deliver on full-year expectations

Hogg Robinson Group plc, the international corporate services company, today issues its second Interim Management Statement for the year ending 31 March 2017, covering the period from 1 October 2016 to date.

Current trading and outlook

Hogg Robinson Group plc has continued to trade in line with our expectations during the second half of the Group's financial year to date. The Board believes the Group will deliver a full-year performance in line with market expectations.

As expected, the trading environment for HRG (Travel Management) weakened in the second half of the financial year to date as our travel clients responded to the current broader economic uncertainty and we saw the impact of client losses announced at the half year, as well as the continued move to online booking and ongoing strong competitive pressure. In spite of these challenges, we continue to expect HRG to deliver a full-year performance in line with expectations.

We are now past the midway point of our three-year restructuring programme which is designed to shape and realign the cost base of our business. We are pleased with progress and are delivering as planned. As ever, our use of technology remains at the forefront of our business and a number of new initiatives have been implemented across our businesses during the period, including the launch of our new travel app which has been very well received.

Fraedom (Technology) revenue grew year on year in the period as a result of increased sales with existing clients and newly on-boarded clients facilitated by the investment undertaken in the first half to support growth.

Financial position

The Group's financial position remains robust and we continued to focus on reducing net debt in the period.

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

"Against continued economic uncertainty, our ability to help our clients manage their costs effectively and maximise the value of their spend becomes ever more important. Our three-year restructuring programme is progressing well and we have continued our strategy of deploying our own technology across our businesses, as well as exploring ways to innovate around our client proposition. We continue to expect to deliver a full-year performance in line with expectations."

- Ends -

Enquiries:

 
                                     [phone] 
 Hogg Robinson Group                  600 
 Michele Maher, Chief Financial 
  Officer 
 Angus Prentice, Head of Investor 
  Relations 
 
                                     [phone] 
 FTI Consulting                       1000 
 John Waples 
 Matthew O'Keeffe 
 Alex Le May 
 

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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February 20, 2017 02:00 ET (07:00 GMT)