HRG has indicated a strong recovery in business travel after pre-tax profits rose by 16% to almost £33 million. The figure for the year to the end of March came on revenue up by 10% to £358 million.
Travel transaction activity rebounded from being 3% down in the previous 12 months to being 17% up in 2010/11. Client travel spend rose by 20% compared to being down by 17% in the previous year.
HRG said its client retention rate remains above 90% with continued net new business wins. The company continues to make investment in technology with an emphasis on mobile applications.
Chief executive David Radcliffe said: “I am delighted to report on another good year for HRG, which has been marked by strong growth in revenue and earnings and supported by a strong recovery in global business travel.”
Clients remain focused on optimising their travel expenditure and reducing costs, he added. “Many of their cost-saving changes that were imposed during the financial crisis are still being applied,” said Radcliffe.
“It is also fair to say that many have moved away from the simple mantra of cost reduction to balance value-adding services with total cost.
“As a full service provider, our technology platform has delivered real value in the eyes of our clients. Good examples of this are the increasing use of online self-booking tools and the introduction of mobile applications.”
Radcliffe added: “In the past year, the industry has had to cope with a number of significant events ranging from fuel duty rises and severe winter weather to earthquakes, floods and a volcanic eruption that have disrupted travel and heightened anxiety for those involved.
“Our strategy remains centred on delivering value through excellent service that is tailored to the specific needs of each client. It is often at times of crisis and severe disruption that our clients come to appreciate the true meaning of 'travel management' and the high quality of our service.”
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