The less than ideal economic backdrop was always going to be challenging for corporate travel agency, Hogg Robinson (HRG) - particularly in the recession-hit European countries. But cost-cutting and higher client spending in some areas did at least help the group to keep its underlying half-year operating profit flat in the period at £22.7m.
The European division's sales fell 3.2 per cent year-on-year to £114m (at constant currencies), while divisional underlying operating profit dropped 9.8 per cent to £14.7m. But European client travel transaction activity actually rose during the half by 6 per cent, significantly helped by firm signs of a UK economic recovery - although, a trend was still evident towards the greater use of cheaper rail travel, instead of domestic airlines and overnight hotel stays. The a solidly growing US economy, however, meant good news for the group's North American unit. Here, client transaction activity rose by 13 per cent in the period and underlying revenue grew 1.6 per cent to £32.1m, while divisional underlying operating profit jumped 10.6 per cent to £5.2m.