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Pre-tax profit up 15 per cent at Hogg Robinson Group

New chairman Nigel Northridge hails result as "a very credible performance"

Pictured: Nigel Northridge

Hogg Robinson Group saw pre-tax profit rise by 15 per cent to £26.7 million in 2016.

The rise in reported profit before tax was driven mainly by revenue growth in Fraedom, its new technology business, along with cost restructuring actions in its travel management arm.

Revenue was down 4 per cent to £318.3m for the year ended 31 March 2016, according to accounts filed at Companies House.

Cost restructuring actions have yielded a £4m cost saving during the financial year, while net debt has reduced by 39 per cent to £33.6m.

In a statement accompanying the accounts, chairman Nigel Northridge described the results as “a very credible performance.”

Northridge, who joined the board in January and assumed the chairman role in April, said: “Hogg Robinson Group’s core travel management business operates in an industry that is becoming increasingly commoditised and technology dependent. I am reassured by the fact that most of the group’s applications and solutions are proprietary, and excited by the growth prospects of Fraedom, Hogg Robinson Group’s technology business.

“As the company faces the structural changes taking place in the industry, Hogg Robinson Group is well placed to embrace those developments which we expect will continue to generate attractive returns for our shareholders.”

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