Hogg Robinson signals an 'emerging recovery'

Corporate travel specialist Hogg Robinson raised its profit hopes for the full year after witnessing an emerging recovery in the industry.

The provider of business travel services to clients worldwide including Rolls-Royce, Volkswagen and GlaxoSmithKline, said spending and bookings were both up 18 per cent in the six months to 30 September.

It had to tighten its belt after the recession bore down on businesses and hit corporate travel.

But the company has experienced a turnaround in the market in the first half of the current financial year and tripled its pre-tax profits to 13.3 million.

In addition, the firm said disruption caused by the volcanic ash cloud and British Airways strikes actually generated more work for its business as it managed contingency plans to offset the disturbance to travel.

Hogg said trade first started to improve in the Asia-Pacific region and this was followed by North America and Europe.

The company said it had seen the strongest growth in revenues from clients in the pharmaceuticals and manufacturing sectors, while there has been a slight decline in Government contracts.

Hogg said it won more business than it lost in the first half.