Pre-tax profit plunged 46% to £3.3m in the six months to 30 September, while revenue fell 9% to £155.3m.
The travel management company announced an interim dividend of 0.4p per share, equivalent to one third of last year’s annual dividend.
Hailing a ‘resilient performance during the recession’, chief executive David Radcliffe said HRG’s fee-based model works and it has seen a ‘minimal impact from any shift to cheaper travel options’.
Corporates had taken fewer business trips but he noted ‘recent signs of stabilisation’.
Some clients are beginning to relax their travel policies although Radcliffe remains cautious about the pace of recovery.
‘We have continued to control our cost base tightly without damaging our ability to benefit from the upturn when it arrives,’ he said.
‘We continue to believe that the group will deliver a full-year performance in line with market expectations and, looking further ahead, we believe that we are well positioned to respond as market conditions improve.’
As well as fewer trips, clients are making more use of advance bookings and restricted tickets, and re-negotiating supplier deals.
Online reservations have increased and there is stronger policy compliance and demand for data.
HRG’s client retention rate remains above 90% and it won more clients than it lost during the six-month period. New clients include BNP Paribas, Scottish Enterprise Department and Wells Fargo.
See also:
HRG announces consultancy promotions (17/09/2009)
HRG woos SMEs (08/09/2009)
New Government contract for HRG (27/08/2009)
HRG seeks concessions from staff (04/08/2009)
Swine flu hits Hoggs (30/07/2009)