Hogg Robinson confident despite market turbulence

Corporate travel services firm Hogg Robinson said a strong pipeline of new business opportunities gives it confidence for future trading despite challenging trading conditions as it posted an 18 per cent increase in annual profit.

Pre-tax profit for the year ended March 31 climbed to £34.1m from £28.9m the year before. Revenue for the period rose to £374.2m from £358m before.

Underlining its confidence in future trading, the group has recommended a final dividend of 1.4p per share, giving a full year dividend of 2p per share, up 33% on the prior year.

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Commenting on the trading conditions, chief executive David Radcliffe said, "Given the difficult macroeconomic outlook, we expect trading conditions to remain challenging during the current financial year."

"However, since the year end, the Group has continued to trade in line with our expectations and we are confident that our proven strategy and business model, our robust financial position and strong pipeline of new business opportunities will enable HRG to continue to make good progress in the year ahead," it added.

During the year, client travel activity increased 2% while travel spending rose by 5%.

CJ