HRG Reports Fall In Profits

It now seems that one of the UK’s largest travel management companies, HRG, has just recently announced that it had a drop in revenues and profits. The company saw its revenues fall by 9 percent to £155 million, and its profits after taxes dipped by £0.3 million to £7.5 million to the end of September compared to the same period last year.

Despite the falling profits, the company was able to still remain positive and out of the red. However, the total amount of profits was reduced to £2.2 million, which is just about half of what it made last year. David Radcliffe, the chief executive of HRG, said the company has been able to show good performance during the recession. He noted that they have been able to reduce costs in line with the fall in demand. Radcliffe continued to point to a high client retention rate of more than 90 percent and a number of new business wins for the company overall. He said that the company’s fee based business model works.

HRG, overall, has pointed out a number of things in the travel industry that have been shaping the corporate sector. Things such as less frequent travel, stronger policy compliance, and a greater use of technology were among some of the things the company pointed out.

Despite all of this, Radcliffe was able to point to some signs of stabilization in the marketplace. This included the fact that many clients are starting to relax their travel policies again. Radcliffe says that the market will recover, but the company as a whole will remain cautious about the pace of recovery.