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Reed & Mackay profits up 23 per cent to £11.9m

Turnover also up £3.1m to £33.1m, as corporate travel management company says client retention is key

Pictured: Reed & Mackay CEO Fred Stratford

Corporate travel management company Reed & Mackay has seen a 23 per cent rise in profits this year, saying it has maintained competitiveness by providing cost savings for clients.

The company, which also specialises in event management and incentive travel, posted £11.9 million pre-tax profit for the year ending 31 March 2016, up from £9.7m the previous year.

Along with the rise in profits, accounts filed at Companies House reveal that turnover rose by £3.1m to £33.1m.

In a report accompanying the financial results, CEO Fred Stratford said: "The market for the provision of business travel services has remained very competitive. The company's focus on service delivery, cost savings and value added benefits to its customer base has allowed the business to win new business whilst maintaining exceptional retention rates.

"The company actively seeks to reduce the total cost of travel via various channels - tactical fare purchasing at point of sale, efficiency measures and a consultative approach via the strategic account management team.

"The company seeks to manage the risk of losing customers to key competitors by the provision of added value services to customers, driving down the overall cost of travel and by managing targeted business plans which deliver the customers' key objectives."

The company says it has a high proportion of recurring revenues from a contracted client base, giving the directors confidence that short-term targets will be met and further investments in service improvements can be maintained. It says there are "still abundant opportunities" in its core sectors of legal, financial, insurance, media and oil and gas.

The report adds: “The recent EU referendum outcome will cause some uncertainty for the future UK economy, however Reed & Mackay’s services remain essential to clients, and we continue to focus on client to deliver profitable growth.

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