Hogg Robinson Group (HRG), the travel, expense and data management specialist, said the tough trading conditions outlined in its May trading statement have continued into the months of June and July.
Going up against tough comparatives from a year ago, and with currency movements not helping, revenues in the three-month period from April 1st were down 12% on a year earlier, or down 8% with currency effects stripped out. This was below management's expectations.
The group saw a 3.0% decline in client travel transaction activity and a 7.0% fall (4% decline on a constant currency basis) in client spend. Despite this, the group still expects full year results to be in line with market expectations, bearing in mind the group's earnings are traditionally weighted to the second half.
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David Radcliffe, Chief Executive of Hogg Robinson Group, said: "It has been a challenging start to the year for the industry given the difficult macroeconomic conditions, and HRG has also faced more demanding year-on-year comparatives after the strong first half we reported last year.
"However, HRG's model does not rely on large revenue growth to enable margin progression and whilst we continue to be mindful of the economic environment, the group continues to see the full-year performance in line with expectations.
"Our pipeline of new business opportunities remains strong and we see ample scope to grow our business profitably around the world. We will continue to manage our cost base carefully to ensure that it remains appropriate while enabling us to continue to deliver excellent service to our existing clients at all times."
Net debt was around £7.0m higher than at the same date last year, following the acquisition of Spendvision.
The share price fell 4.17% to 57.50p by 15:02.
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