Hogg Robinson in 15pc profit surge

CORPORATE travel firm Hogg Robinson posted a 15 per cent rise in full-year adjusted pre-tax profit on higher margins yesterday and said it expected an increase in travel activity from its existing clients in the coming months.

The company said it expected client revenues for April and May to be similar to 2009, despite the short-term closures of the European airspace due to volcanic ash.

“While the pace and level of economic recovery remains unclear, the positive momentum we are seeing is encouraging and, for the full year, we expect to deliver further progress,” chief executive David Radcliffe said.

For the year to 31 March, the company said its pre-tax profit before items rose to £28.4m from £24.7m last year.

Revenue fell seven per cent to £326.8m as client travel spend declined 12 per cent during the year. The company maintained its full-year dividend at 1.2p.

Rival Holidaybreak had already reported a narrower first-half loss.