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HRG RESULTS DISPEL "MISUNDERSTANDINGS"

DESPITE A £19 MILLION increase in revenue during the last financial year - up by 5.7 per cent to £351m - HRG (Hogg Robinson Group) saw a pre-tax profit fall by £2.4m to £24.7m. The company paid a full-year dividend of 1.2p per share.

The figures reveal a cost of £6.9 million to restructure the business, that figure taking in redundancies and other measures. "We took a realistic look at our business after the Christmas break and agreed to reshape it accordingly," said CEO David Radcliffe. "When things get better, which they will, we are very well placed."

He said the company's overall performance reinforced the fact that HRG had "quite a robust business model - one that no longer relies on how much the client spends to drive our profitability.

"If the client turns left or right on the plane, to a large extent it doesn't matter. Our revenue is driven largely by client fees. That is not to say that supplier income for what we do for them is not important, but the main driver is client fees." He pointed out that there was "extraordinary pressure" on the margins as clients sought to renegotiate contracts, but added that HRG's diversified client portfolio ensures that the group is not overly exposed to any individual client or sector.

Radcliffe added: "We are quietly pleased with the results which have helped to dispel a lot of misunderstandings about us."