PR Newswire
London, November 28
29 November 2012 Hogg Robinson Group plc ('HRG', 'the Company' or 'the Group') Results for the six months ended 30 September 2012 Resilient profit performance in a tough market Summary of results Six months ended 30 September 2012 2011 Change Revenue £168.9m £186.8m -10% Underlying earnings (1) - Operating profit £22.7m £23.4m -3% - Operating profit margin 13.4% 12.5% +0.9pp - Profit before tax £17.3m £18.7m -7% - Earnings per share 3.8p 4.1p -7% Reported earnings - Operating profit £20.7m £21.3m -3% - Profit before tax £15.3m £16.6m -8% - Earnings per share 3.4p 3.6p -6% Interim dividend per share 0.6p 0.6p - Net debt £100.5m £68.9m +£31.6m Free cash outflow (2) (£27.0m) (£0.7m) -£26.3m Highlights
Resilient profit performance in a tough market
Revenue down 10%, down 7% at constant currency
Underlying operating profit margin up from 12.5% to 13.4% driven by cost reduction measures and new technology sales
Net new business wins including Airservices, Bayer, Cricket Australia, Hansel, Pirelli and Unilever
Net debt at 30 September 2012 equivalent to 1.8x EBITDA(3) (2011: 1.2x)
Interim dividend held at 0.6p per share
Outlook
Although it is difficult to predict the future direction of economies globally, given the Company's current forward visibility of workload, combined with the benefits of new business and the cost reduction measures we are taking, the Board believes that HRG will continue to make progress and will deliver a full-year performance broadly in line with current market expectations.
David Radcliffe, Chief Executive of Hogg Robinson Group plc, said:
"HRG has delivered a resilient profit performance in challenging market conditions and in the face of more demanding year-on-year comparatives. This performance reflects the strength of our business model and our ongoing work to improve the efficiency of our operations and ensure that our cost base is appropriate for the market backdrop. We focused on this during the first half and will continue to do so throughout the second half whilst not compromising our excellent customer service.
"Corporates are understandably cautious in their approach to travel but our proven ability to help our clients achieve best value from their travel budgets is reflected in our ongoing strong client retention rate and success in securing net new business wins including Bayer, Pirelli and Unilever.
"Although it is difficult to predict the future direction of economies globally, on the basis of our performance in the second half to date, combined with new business wins and our cost reduction measures, the Board believes that HRG will continue to make progress and will deliver a full-year performance broadly in line with current market expectations."
Notes:
(1) Before amortisation of acquired intangibles
(2) Free cash flow is the change in net debt before acquisitions and disposals, Employee Benefits Trust purchases, dividends and the impact of foreign exchange movements
(3) Earnings before interest, tax, depreciation and amortisation (EBITDA)
For further information contact:
Hogg Robinson Group +44 (0)1256 312 600 David Radcliffe, Chief Executive Philip Harrison, Group Finance Director Angus Prentice, Head of Investor Relations Tulchan Communications +44 (0)20 7353 4200 Stephen Malthouse David Allchurch Martin Robinson A briefing by conference call for analysts and institutional investors will be held at 0900h GMT today. For conference call details, please contact Tulchan Communications on +44 (0)20 7353 4200. The presentation slides used in this briefing will be available at http://investors.hoggrobinsongroup.com/hrg/en/investor-relations/presentation from 0845h today. A replay recording of the conference call will be available via audio webcast and podcast at http://investors.hoggrobinsongroup.com/hrg/en/investor-relations/presentation
later today. Notes to Editors
Hogg Robinson Group plc (HRG) is the award-winning international corporate services company. Established in 1845 and headquartered in Basingstoke, Hampshire, UK, HRG specialises in travel, expense and data management underpinned by proprietary technology. With a worldwide network that comprises over 120 countries, HRG provides unparalleled global expertise and local knowledge in Europe, North America, Asia Pacific, Africa, Latin America and MEWA. Read the latest HRG news and search our archives.
This announcement may contain forward-looking statements with respect to certain of the plans and current goals and expectations relating to the future financial conditions, business performance and results of Hogg Robinson Group Plc (HRG). By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond the control of HRG, including amongst other things, HRG's future profitability, competition with the markets in which the Company operates and its ability to retain existing clients and win new clients, changes in economic conditions generally or in the travel and airline sectors, terrorist and geopolitical events, legislative and regulatory changes, the ability of its owned and licensed technology to continue to service developing demands, changes in taxation regimes, exchange rate fluctuations, and volatility in the Company's share price. As a result, HRG's actual future financial condition, business performance and results may differ materially from the plans, goals and expectations expressed or implied in these forward-looking statements. HRG undertakes no obligation to publicly update or revise forward-looking statements, except as may be required by applicable law and regulation (including the Listing Rules). No statement in this announcement is intended to be a profit forecast or be relied upon as a guide to future performance. Overview Given the widespread macroeconomic uncertainties that have prevailed for much of the past year, HRG's performance in the face of demanding year-on-year comparatives during the first half of the current financial year was once again testament to the resilience of the Group's business model. This resilience is drawn from the bulk of our revenue coming from fees charged to clients for the work that we do for them. Our headline results for the first half of the financial year show a 7% fall in revenue and a 2% decline in underlying operating profit, both at constant currency. For the six months to 30 September, client travel spend at constant currency and transaction activity fell by 8%. We saw further evidence during the period of clients choosing cheaper travel and accommodation options, reflecting an increasingly cautious approach to travel with many clients reducing discretionary spending. Most of our clients are asking us to help them prioritise their travel plans and many are imposing restrictions on their staff through tighter enforcement of travel policy. As an example of this type of cost reduction activity, we continue to see our clients take up online self-booking tools, including our own HRG OnlineTM. In response to the lower transaction activity, we have taken action to reduce our own operating costs and continue to seek self-help measures designed to further reduce our costs and protect margin. As a direct result of our continuing client focus and determination to meet the specific needs of each of our clients, we have maintained our consistently high client retention rate. We have won more business than we lost. New clients that we welcomed during the first half include Airservices, Bayer, Cricket Australia, the governing body of professional and amateur cricket in Australia, Hansel, the central procurement unit of the Finnish Government, Pirelli and, as previously announced, Unilever. Historically, we have been very successful at winning additional business from existing clients. In the case of Pirelli, for example, HRG has managed group transfers for its F1TM business during the past year. We were then invited to tender for the broader corporate travel management operation for the Pirelli Group, and were delighted to be awarded their multi-country contract. We also secured expanded contracts with existing clients such as Ernst & Young, ExecuJet, Holcim, the UK Government and Volkswagen. Notable amongst the many clients that renewed their contracts with HRG during the period were BNP Paribas, Deutsche Bank, GDF Suez, Julius Berger, KPMG and Lloyds Banking Group.
Our pipeline of new business prospects remains strong.
As part of our previously mentioned strategy to provide technology solutions not only to our existing clients but also to the wider travel industry, we benefited in the period from a recently-signed agreement to licence some of our travel technology to a leading global distribution system (GDS) provider, reinforcing the Group's B2B technology strategy.
Since the period end, we entered into a preferred relationship with Citi Commercial Cards, a leading commercial card provider to large and multi-national organisations globally. The new relationship provides an opportunity to maximise our combined intellect and technologies to deliver enhanced travel programme solutions to the end-to-end process of travel, payment and expense management.
Financial results Revenue of £168.9m was down 10% as reported, or down 7% at constant exchange rates. Underlying operating profit, which is stated before charging the amortisation of acquired intangibles, fell by 3% (£0.7m) to £22.7m, showing a margin improvement from 12.5% to 13.4% as a result of our continued focus on operational efficiency, cost control and new technology sales. Our new technology sales contributed approximately 10% of operating profit for the period. Unfavourable movements in exchange rates contributed £0.3m to the operating profit decline. Underlying profit before tax was down by 7% to £ 17.3m and underlying EPS fell by 7% to 3.8p. After reflecting the amortisation of acquired intangibles, reported operating profit was lower by 3% at £20.7m, profit before tax was down by 8% to £15.3m and EPS fell by 6% from 3.6p to 3.4p. Net debt rose year-on-year, as expected. The increase of £31.6m reflects our previously-announced decision to discontinue the active working capital programme (£18.6m), acquisitions including the purchase of Spendvision (£10.3m) and share purchases by the Employee Benefits Trust (£8.1m). The Group's active working capital programme was introduced during 2009 to help remove uncertainty about compliance with banking covenants. Net debt of £100.5m at 30 September 2012 represented 1.8x EBITDA for the last 12 months. We continue to operate well within our banking covenants. We have noted in the past that inflation and discount rates are volatile and that the current low interest rate environment increases the accounting valuation of pension liabilities. Our principal UK scheme has been closed to new entrants for several years and has benefit caps in place. On an accounting basis, the Group-wide pre-tax pension deficits have increased by £12.5m since the year end to £158.3m as the impact of a further reduction in the discount rate was only partially offset by inflation rate changes. The Board has declared an interim dividend of 0.6p per share. This dividend will be paid on 3 January 2013 to shareholders on the register at the close of business on 7 December 2012. Our progressive dividend policy remains unchanged. Current trading and outlook We expect the challenging market conditions to continue. Revenue in October was 4% down compared to prior year. Trading in November has been in line with our expectations. Although forward visibility continues to be limited, we remain focused on maintaining a cost base that is appropriate to underlying revenue and workload while ensuring that our usual high standard of client service is not compromised. We have worked successfully in recent years to improve the efficiency of the Group's global operations. This work was sustained during the first half of the current financial year. Additional cost-saving initiatives are being taken in the second half of the year to reflect our cautious view of market conditions in the coming months. Historically, a higher proportion of the Group's earnings and cash flow has come in the second half of the financial year. While earnings growth remains our priority, we are confident that our strong pipeline and clear focus on the delivery of excellent service to our clients will result in further new business wins in the second half. Going forward, we also anticipate growth in income from new technology partnerships. Although it is difficult to predict the future direction of economies globally, given the Company's current forward visibility of workload, combined with the benefits of new business and the cost reduction measures we are taking, the Board believes that HRG will continue to make progress and will deliver a full-year performance broadly in line with current market expectations. Operational Review Client activity
During the first half of our financial year, both our client travel spend at constant currency and transaction activity fell by 8%.
Given the economic uncertainties and dampened business confidence, it is not surprising that clients continued to seek further, incremental cost savings. While most recognise the need to travel, a cautious approach prevails. A majority of major clients are scrutinising their future travel commitments and have established plans to cut travel spend. As we have seen when similar conditions have existed in the past, our clients place heavy reliance on our expertise, experience and tailored advice to help maximise value from their travel and related expenditure. We saw further evidence in the first half of growth in client adoption of online self-booking of travel, particularly for simpler travel itineraries, as clients continued to seek further cost savings. Other notable trends included the adoption of authorisation to travel processes and more rigorous control and tighter management driving greater adherence to travel compliance policies. With client cost reduction and savings plans gathering momentum, we are identifying more areas where we can help our clients. Two areas where we are seeing particular interest are the management of costs associated with hotel accommodation and business meetings. Our Consulting division is in great demand to provide specialist help to identify and support cost-saving initiatives. We are encouraged by these developments, all of which offer additional revenue opportunities for HRG. Following our move to full ownership of Spendvision, it is pleasing to report growing interest by our clients for integrated 'end-to-end' travel and expense management solutions. As we continue the integration of Spendvision into HRG, we are increasingly seeing opportunities to include discussion of such aligned programmes with current and prospective clients. Our focus at all times and throughout the business remains on providing a superior service of the highest quality to each of our clients around the world. Inevitably, we lose clients from time to time. However, we continue to attract new clients and extend our services and geographic coverage for existing clients. Once again, our reward for offering good value and superior service has been a consistently high client retention rate.
One of HRG's strengths is its ability to serve its clients and their travellers right around the globe, offering expertise and local knowledge through a worldwide network that comprises over 120 countries. During the period, we added Nepal and Uzbekistan to the network and, more recently, appointed new partners in Peru and Tunisia to extend our global reach and provide further depth and strength to the organisation.
Corporate Travel Management Europe Six months ended 30 September 2012 2011 Change Revenue £113.9m £125.1m -9.0% Operating profit £14.8m £13.4m +10.4% Underlying operating profit (1) £16.3m £15.0m +8.7% Underlying margin (1) 14.3% 12.0% +2.3pp
(1) Before amortisation of acquired intangibles
Revenue was down by 4.0% at constant currency. Underlying operating profit rose by £1.3m, including a £0.3m loss from currency movements. Underlying operating profit margin improved, up from 12.0% to 14.3%. Client travel spend fell by 4% year-on-year in real terms and travel activity was down 4%. Despite a reduction in revenue, underlying operating profit rose due to tight control of our cost base along with a contribution from new technology sales. In the face of lower client travel activity in the UK, cost reduction measures were implemented across all areas and these contributed to growth in earnings despite a small decline in revenue. Further efficiency measures involving properties, management and support services continue to be evaluated. There was a noticeable decline in travel activity in August - typically a quiet month for business travel - due to the Olympics but this was in line with our expectations. On an annualised basis and for the first time, HRG's UK business now books more rail tickets than air or hotels, a result of a number of factors including changes to travel patterns and increasing business with the UK Government. Clients continue to seek more cost effective solutions and our online self-booking solutions, using HRG's proprietary technology or third-party booking tools, continue to prove attractive. In the Nordic countries, clients remain very cost conscious, particularly in Sweden. The trend towards online self-booking of travel continued in the period. We made several changes to our network in the region during the period and further efficiency measures are ongoing. Technology improvements are enabling us to reduce our branch network further. We are pleased to have won Hansel, the central procurement unit of the Finnish Government, as a new client, further evidence of our expertise in and experience of working with the Government sector. As industrial output in Germany has slowed, our clients have become more dependent on HRG's ability to offer innovative solutions that provide incremental cost savings. We launched 'Simply HRG' in Germany during the period, offering a range of services to small and mid-sized companies. Implementation work for DHL, a major new client won last financial year, was completed. This is the first significant global client consolidation on one contract from Germany and we have rolled out our service to DHL in 48 countries. Similar consolidation exercises are underway for clients Volkswagen and BMW. Amongst our Swiss clients, activity was mixed. Banking clients traded down in terms of activity and spend, while our pharmaceutical clients showed strong expansion. Activity levels for our SME clients are historically volatile and fell sharply year-on-year in the first half. We were able to capture productivity increases from our recent investment in new telephony systems allowing us to divert calls more easily within the branch network. North America Six months ended 30 September 2012 2011 Change Revenue £31.4m £39.0m -19.5% Operating profit £4.3m £6.4m -32.8% Underlying operating profit (1) £4.7m £6.8m -30.9% Underlying margin (1) 15.0% 17.4% -2.4pp
(1) Before amortisation of acquired intangibles
Revenue was down by 20.5% at constant currency. Underlying operating profit fell by £2.1m with little currency impact. Client spend was down by 17% in real terms and activity lower by 13%.
HRG operates two businesses in North America: (1) corporate travel management, and (2) loyalty, managing the redemption of credit card loyalty points programmes.
Following the restructuring of our loyalty business in Canada last year, referred to in our full-year results announcement last May, the planned transition to an online environment in cooperation with another supplier has resulted in significantly lower fee income. These changes have had a material impact on the overall revenue and earnings of our North American operations in the period. Roughly two thirds of the revenue decline and approximately three quarters of the fall in underlying operating profit in North America is attributable to the restructuring of the Canadian loyalty business. Excluding our loyalty business in North America, client travel spend fell by 4% at constant currency while transaction activity was in line with the prior year. Our travel management business showed a weaker performance compared to the same period last year. However, we were encouraged by additional business secured with a number of existing clients including Volkswagen. Revenue from our larger multinational clients grew strongly. In a competitive market where lower-price transactions account for much of the domestic travel in the region, our focus in recent years has been on investing in proprietary technology aimed at reducing our operating costs and driving increased efficiency. Online self-booking solutions continue to be attractive to clients seeking to gain better value from their travel spend and accounts for more than half of all client air transactions. Asia Pacific Six months ended 30 September 2012 2011 Change Revenue £14.8m £15.6m -5.1% Operating profit £0.4m £0.7m -42.9% Underlying operating profit (1) £0.4m £0.7m -42.9% Underlying margin (1) 2.7% 4.5% -1.8pp
(1) Before amortisation of acquired intangibles
Revenue was down by 5.1% at constant currency. Underlying operating profit fell by £0.3m with little currency effect. Client travel spend fell by 13% year-on-year in real terms and activity was down 20%.
As in other geographies, HRG's clients in Asia Pacific showed signs of greater caution in terms of travel spend during the period, amid concerns about the impact of the ongoing issues in the Eurozone region. In particular, we saw a marked decline in activity in Australia during the period with a number of our clients imposing aggressive cost reduction programmes within their businesses.
We have taken specific actions to streamline our operations and reduce our operating costs to better match the anticipated activity for the remainder of the year.
Down trading by clients in Singapore has been less pronounced than in other countries in the region, perhaps helped by the relative stability of the country's economy. Online self-booking of travel is beginning to be seen as an attractive alternative for some clients in this country.
In mainland China and Hong Kong, our joint ventures performed steadily. As associates, their results are not included in the table above. While growth of the Chinese economy has slowed in recent months, the organic growth of our existing Chinese clients continues to drive the business. Pricing remains very competitive. Spendvision Six months ended 30 September 2012 2011 Change Revenue £8.8m £7.1m +23.9% Operating profit £1.2m £0.8m +50.0% Underlying operating profit (1) £1.3m £0.9m +44.4% Underlying margin (1) 14.8% 12.7% +2.1 pp
(1) Before amortisation of acquired intangibles
Revenue was up 22.5% at constant currency, driven by a strong performance from our banking clients in North America, while our direct client base in Australia and New Zealand also showed good growth. Underlying operating profit rose by £ 0.4m, with little impact from currency movements. The continued rise in underlying margin is encouraging and reflects the growth in the revenues and an ongoing focus on key business objectives. Banking partnerships have been strengthened further with a new agreement signed with Lloyds Bank in the UK. Uptake of the Visa IntelliLink Spend Management solution, a white-label version of the Spendvision platform provided through an alliance with Visa, has progressed well with Spendvision continuing to provide consultative support to help roll the solution out to issuers and their customers.
Spendvision has a strong pipeline of new business opportunities, particularly in the banking sector through white-label offerings. We look forward to further capitalising on our strengths in the travel and expense management arena in the coming period.
Technology With clients seeking ways to reduce travel and related expenditure while maximising the value of their spend, and with airlines, hotels and other providers looking for greater efficiency and reduced operating costs, the use of technology in the delivery of travel and related expense solutions has become more important. Independence and flexibility are key strengths of HRG's technology strategy. Through the HRG Universal Super PlatformTM, the Group's proprietary technology underpins all our products and services, delivering innovative and cost-effective solutions to HRG's clients and, increasingly, to the wider travel industry and related expense sectors. HRG remains at the forefront of technology development in the industry. During the first half of the financial year, we successfully reached a ten-year agreement with a leading GDS provider, to utilise our travel technology in future products. Our earnings in the period benefitted from this agreement and we will see further contribution through the life of the agreement. Following HRG's purchase of the minority interest in Spendvision at the end of last year, we have been working hard to integrate Spendvision's transaction management technology into the Group. Work involved in the development of a next generation travel and expense management solution began in the period, with release targeted for late next year. HRG InsightTM, our new dynamic and flexible data reporting tool, entered pilot stage during the final quarter of last financial year. Through improved analysis of data, this product offers travellers and travel managers better information about travel transactions and expenditure. Results obtained during the period from the pilot studies were excellent and deployment of this product to our clients has begun.
Additional Financial Disclosures
Revenue
Reported revenue reduced by 9.6% to £168.9m, comprised of a reduction of 6.5% at constant exchange rates and 3.1% through adverse currency movements.
Revenue per Employee
Reported revenue per employee reduced by 2.6% from £34.3k to £33.4k. At constant exchange rates this was a marginal increase of 0.7%.
Operating expenses
Reported operating expenses reduced by 10.5% to £148.2m.
Underlying operating expenses, which are before amortisation of acquired intangibles, reduced by 10.5% from £163.4m to £146.2m, or by 7.2% at constant exchange rates. This 7.2% reduction is comprised of 5.7% for staff costs and 10.5% for other expenses, primarily reflecting lower staff numbers and a continuing focus on cost management.
Underlying operating profit
Underlying operating profit, which is before amortisation of acquired intangibles, reduced by 3% from £23.4m to £22.7m, including a deterioration of £0.3m from unfavourable currency movements. Underlying operating profit margin increased from 12.5% to 13.4%, inclusive of a 0.2% benefit from currency movements. Exceptional items
There were no exceptional items reported in the current or prior periods.
Net finance costs
Net finance costs increased by £0.6m to £5.7m, primarily reflecting an increased IAS 19 pension charge as a result of a reduction in the discount rate applied to the defined benefit pension schemes.
Taxation
The tax charge of £4.3m for the current period represents an effective tax rate of 28% on profit before tax of £15.3m compared to a tax charge of £5.0m last year (30%). This includes a £0.1m charge relating to the impact of a reduction in the UK corporation tax rate from 24% to 23%. The Consolidated Statement of Comprehensive Income includes a charge of £1.5m in respect of deferred tax assets on pension liabilities. We anticipate an effective tax rate for the full year of approximately 28%.
Cash flow
Free cash outflow, which is the change in net debt before acquisitions and disposals, Employee Benefits Trust purchases, dividends and the impact of foreign exchange movements on net debt balances, was £27.0m (2011: £0.7m) for the six months ended 30 September 2012.
Cash outflow in respect of working capital was £40.2m, primarily due to the withdrawal of the working capital management programme which was previously used to reduce working capital requirements at the end of each half-year reporting period. The cash outflow related to interest was £3.2m (2011: £ 3.4m). Tax paid in cash was £3.1m (2011: £2.3m) and capital expenditure, which is primarily internal software development and office equipment, was £4.8m (2011: £5.3m). Cash costs for additional pension funding reduced to £2.7m (2011: £3.1m). In addition to free cash flow, the other major cash flow items are related to dividends paid to shareholders during the period of £4.4m (2011: £2.8m) in respect of the year ended March 2012 and share purchases made by the Employee Benefits Trust of £8.0m (2011: £2.4m).
Funding and net debt
The principal banking facility is a £190m multi-currency revolving credit facility (RCF) that is committed until November 2014. The RCF is used for loans, letters of credit and guarantees, with interest based on LIBOR/EURIBOR plus a margin and costs. The Group has fixed interest on CHF 25m until November 2014 and on £20m until February 2017. In addition, the Group has a £ 30m fixed rate loan, repayable by 2018, and uncommitted facilities amounting to around £19m at the half year. The principal covenants continue to be measured semi-annually, at the end of March and the end of September, against EBITDA. The covenants require that net debt is less than 3.0 times EBITDA and net external interest is covered at least 4.0 times by EBITDA, both on a rolling 12-month basis. The definition of EBITDA for covenant purposes is not materially different to the definition used in these financial statements. Net debt increased by £31.6m to £100.5m and was equivalent to 1.8 times EBITDA (2011: 1.2 times). This translates into gearing of 48% (31 March 2012: 35%), or 119% (31 March 2012: 99%) including the pension deficits and related deferred tax assets. Net external interest costs were covered 8.8 times by EBITDA (2011: 8.6 times). Pensions
The Group pension deficits under IAS19 have increased by £12.5m from 31 March 2012 to £158.3m before tax.
The UK scheme deficit increased by £12.9m to £147.0m over the same period. The scheme assets increased by £6.0m and the scheme liabilities increased by £ 18.9m, primarily driven by a lower discount rate adding £32.0m to the liability, partly offset by a £19.4m reduction as a result of a lower inflation rate. For several years, the UK defined benefit scheme has been closed to new entrants and has capped increases in pensionable salary. At 30 September 2012 there was a deferred tax asset of £33.8m (31 March 2012: £ 32.2m) related to the UK deficit and an asset of £0.5m (31 March 2012: £0.5m) related to the overseas schemes.
Related parties
Related party disclosures are provided in note 21.
Foreign currency
The following principal exchange rates have been used in the financial statements: Income Statement Balance Sheet 2012 2011 Change 2012 2011* Change Euro 1.25 1.13 -11% 1.25 1.20 -4% Swiss Franc 1.50 1.37 -9% 1.52 1.44 -6% US Dollar 1.58 1.63 +3% 1.61 1.60 -1% Canadian Dollar 1.59 1.58 -1% 1.59 1.60 +1% * As at 31 March 2012 Going concern
The Board believes that the Group has access to adequate resources for the foreseeable future and has continued to prepare the Consolidated Financial Statements on a going concern basis.
Summary income statement Six months ended 30 September 2012 2011 £m £m Revenue 168.9 186.8 EBITDA 28.2 28.7 Depreciation and amortisation (1) (5.5) (5.3) Underlying operating profit 22.7 23.4 Amortisation of acquired intangibles (2.0) (2.1) Operating profit 20.7 21.3 Share of associates and joint ventures 0.3 0.4 Net finance costs (5.7) (5.1) Profit before tax 15.3 16.6 Taxation (4.3) (5.0) Profit for the period 11.0 11.6 Summary balance sheet 30 September 31 March 2012 2012 £m £m Goodwill and other intangible assets 239.5
244.6
Property, plant, equipment and investments 13.8 14.9 Working capital (46.3) (86.9) Current tax liabilities (net) (5.4) (6.4) Deferred tax assets (net) 44.3 43.9 Net debt (100.5) (61.0) Pension liabilities (pre-tax) (158.3) (145.8) Provisions and other items (3.1) (2.9) Net (liabilities)/assets (16.0) 0.4 Summary cash flow statement Six months ended 30 September 2012 2011 £m £m EBITDA 28.2 28.7 Working capital movements (40.2) (16.1) Interest paid (3.2) (3.4) Tax paid (3.1) (2.3) Capital expenditure (4.8) (5.3) Pension funding in excess of EBITDA charge (2.7) (3.1) Other movements (1.2) 0.8 Free cash outflow (27.0) (0.7) Acquisitions and disposals - (1.4) Employee Benefits Trust purchases (8.0)
(2.4)
Dividends paid to external shareholders (4.4)
(2.8)
Currency translation and other (0.1) (0.5) Increase in net debt (39.5) (7.8)
Excluding amortisation of acquired intangibles
Hogg Robinson Group plc Consolidated Income Statement For the period ended 30 September 2012 Notes Half year ended 30 September 2012 2011 £m £m Revenue 7 168.9 186.8 Operating expenses 8 (148.2) (165.5) Operating profit 7 20.7 21.3 Analysed as: Underlying operating profit 7 22.7 23.4 Amortisation of acquired intangibles (2.0) (2.1) Operating profit 20.7 21.3 Share of results of associates and joint ventures 0.3 0.4 Finance income 10 0.1 0.1 Finance costs 10 (5.8) (5.2) Profit before tax 15.3 16.6 Income tax expense 11 (4.3) (5.0) Profit for the period 11.0 11.6 Profit attributable to: Equity shareholders of the Company 12 10.5 10.8 Non-controlling interests 0.5 0.8 11.0 11.6 Notes Half year ended 30 September 2012 2011 pence pence Earnings per share 12 Basic 3.4 3.6 Diluted 3.2 3.4
The notes on pages 13 to 24 form an integral part of the consolidated half-yearly financial information.
Hogg Robinson Group plc Consolidated Statement of Comprehensive Income For the period ended 30 September 2012 Notes Half year ended 30 September 2012 2011 £m £m Profit for the period 11.0 11.6 Other comprehensive income Currency translation differences 19 (2.9)
0.4
Amounts charged to hedging reserve (0.3) - Recycling of cash flow hedge (0.9) - Actuarial loss on pension schemes (13.8)
(32.2)
Deferred tax movement on pension liability 3.3
8.4
Deferred tax movement on pension liability attributable to impact of UK rate change (1.5)
(1.3)
Deferred tax movement on cumulative share-based incentive costs (0.6) - Tax on exercised share-based incentive costs 1.3
Other comprehensive loss for the period, net of tax (15.4)
(24.7)
Total comprehensive loss for the period (4.4)
(13.1)
Total comprehensive loss attributable to: Equity shareholders of the Company (4.9) (13.8) Non-controlling interests 0.5 0.7 (4.4) (13.1)
The notes on pages 13 to 24 form an integral part of the consolidated half-yearly financial information.
Hogg Robinson Group plc Consolidated Balance Sheet As at 30 September 2012 Notes 30 September 31 March 2012 2012 £m £m Non currentassets Goodwill and other intangible assets 14 239.5
244.6
Property, plant and equipment 15 10.7
11.6
Investments accounted for using the equity method 3.1 3.3 Trade and other receivables - 0.1 Deferred tax assets 45.3 45.0 298.6 304.6 Current assets Trade and other receivables 97.5 102.4 Financial assets - derivative financial instruments 0.9
0.5
Cash and cash equivalent assets 16 47.8 68.5 146.2 171.4 Total assets 444.8 476.0 Non currentliabilities Financial liabilities - borrowings 16 (147.5) (126.8) Deferred tax liabilities (1.0) (1.1) Retirement benefit obligations 17 (158.3) (145.8) Provisions (3.9) (4.2) (310.7) (277.9) Current liabilities Financial liabilities - borrowings 16 (0.4) (0.3) Current tax liabilities (5.4) (6.4) Trade and other payables (143.8) (189.4) Provisions (0.5) (1.6) (150.1) (197.7) Total liabilities (460.8) (475.6) Net (liabilities) / assets (16.0) 0.4 Capital and reserves Share capital 18 3.2 3.2 Share premium 18 178.9 177.6 Other reserves 19 1.4 10.1 Retained earnings (200.8) (192.0) Attributable to owners of Hogg Robinson Group plc (17.3)
(1.1)
Attributable to non-controlling interests 1.3 1.5 Total (deficit) / equity (16.0) 0.4
The notes on pages 13 to 24 form an integral part of the consolidated half-yearly financial information.
Hogg Robinson Group plc Consolidated Statement of Changes in Equity As at 30 September 2012 Attributable to equity holders of the Company Non- Share Share Other Retained controlling Total capital premium reserves
earnings Total interests equity
£m £m £m £m £m £m £m Balance at 1 April 2012 3.2 177.6 10.1
(192.0) (1.1) 1.5 0.4
Retained profit for the period - - - 10.5 10.5 0.5 11.0 Other comprehensive income: Actuarial loss on pension schemes - - - (13.8) (13.8) - (13.8)
Deferred tax movement on pension liability - - -
3.3 3.3 - 3.3 Deferred tax movement on pension liability
attributable to impact of UK rate change - - - (1.5) (1.5)
- (1.5) Deferred tax movement on share-based incentives - - - (0.6) (0.6) - (0.6)
Tax on exercised share-based incentive costs - - -
1.3 1.3 - 1.3 Amounts charged to hedging reserve - - (0.3) - (0.3) - (0.3) Recycling of cash flow hedge - - (0.9) - (0.9) - (0.9) Currency translation differences - - (2.8) - (2.8) (0.1) (2.9) Total comprehensive income - - (4.0) (0.8) (4.8) 0.4 (4.4) Transactions with owners: Dividends - - - (4.4) (4.4) (0.6) (5.0) New shares issued to satisfy share-based incentives - 1.3 (1.3) - - - -
Shares purchased by Employee Benefits Trust - - - (8.0) (8.0)
- (8.0)
Share-based incentives - charge for period - - 1.1
- 1.1 - 1.1 Acquisition of non-controlling interests - - - (0.1) (0.1) - (0.1) Reclassification - - (4.5) 4.5 - - - Total transactions with owners - 1.3 (4.7)
(8.0) (11.4) (0.6) (12.0)
Balance at 30 September 2012 3.2 178.9 1.4 (200.8) (17.3) 1.3 (16.0)
The notes on pages 13 to 24 form an integral part of the consolidated half-yearly financial information.
Hogg Robinson Group plc Consolidated Statement of Changes in Equity (Continued) As at 30 September 2012 Attributable to equity holders of the Company Non- Share Share Other Retained controlling Total capital premium reserves
earnings Total interests equity
£m £m £m £m £m £m £m Balance at 1 April 2011 3.1 172.2 14.0
(171.9) 17.4 3.6 21.0
Retained profit for the period - - - 10.8 10.8 0.8 11.6 Other comprehensive income: Actuarial loss on pension schemes - - - (32.2) (32.2) - (32.2)
Deferred tax movement on pension liability - - -
8.4 8.4 - 8.4 Deferred tax movement on pension liability
attributable to impact of UK rate change - - - (1.3) (1.3)
- (1.3) Transfer from exchange reserve to retained earnings - - (0.9) 0.9 - - - Currency translation differences - - 0.5 - 0.5 (0.1) 0.4 Total comprehensive income - - (0.4)
(13.4) (13.8) 0.7 (13.1)
Transactions with owners: Dividends - - - (2.8) (2.8) - (2.8) New shares issued to satisfy share-based incentives - 0.1 - - 0.1 - 0.1 Transfer from share-based incentives reserve to retained earnings - - (2.5) 2.5 - - -
Shares purchased by Employee Benefits Trust - - - (2.4) (2.4)
- (2.4)
Share-based incentives - charge for period - - 1.2
- 1.2 - 1.2 Share-based incentives - exercise of CSOP options - - (0.1) - (0.1) - (0.1) Total transactions with owners - 0.1 (1.4) (2.7) (4.0) - (4.0) Balance at 30 September 2011 3.1 172.3 12.2 (188.0) (0.4) 4.3 3.9
The notes on pages 13 to 24 form an integral part of the consolidated half-yearly financial information.
Hogg Robinson Group plc Consolidated Cash Flow Statement For the period ended 30 September 2012 Notes Half year ended 30 September 2012 2011 £m £m Cash flows from operating activities Cash generated from operations 20 (14.9) 10.3 Interest paid (3.5) (3.6) Tax paid (3.1) (2.3) Cash flows from operating activities - net (21.5) 4.4 Cash flows from investing activities Acquisition of associates, joint ventures and other investments
- (1.4)
Disposals of associates, joint ventures and other investments 0.1 - Purchase of property, plant and equipment
(1.0) (2.7)
Purchase and internal development of intangible assets (3.8) (2.6) Interest received 0.1 0.1 Dividends received from associates and joint ventures 0.2 0.1 Cash flows from investing activities - net
(4.4) (6.5)
Cash flows from financing activities Repayment of borrowings (1.1) (35.0) New borrowings 20.2 18.7 Cash effect of currency swaps
- (0.1)
Acquisition of non-controlling interest (0.1) - Employee Benefits Trust (8.0) (2.4) Dividends paid to external shareholders
(4.4) (2.8)
Dividends paid to non-controlling interests (0.6) - Cash flows from financing activities - net
6.0 (21.6)
Net decrease in cash and cash equivalents
(19.9) (23.7)
Cash and cash equivalents at the beginning of the period 68.5 70.4 Exchange rate effects (0.8) (0.8) Cash and cash equivalents at the end of the period 47.8 45.9 Cash and cash equivalent assets 47.8 47.4 Overdrafts - (1.5) 47.8 45.9
The notes on pages 13 to 24 form an integral part of the consolidated half-yearly financial information.
Hogg Robinson Group plc
Notes to the Consolidated Half-Year Financial Information
For the period ended 30 September 2012
1 General information
Hogg Robinson Group plc is an international corporate services company and specialises in travel, expense and data management underpinned by proprietary technology solutions and products.
The Company is a public limited company, incorporated in the UK under the Companies Act 2006. The address of its registered office is Global House, Victoria Street, Basingstoke, Hampshire, RG21 3BT, United Kingdom.
The Company is listed on the Official List of the UK Listing Authority and the London Stock Exchange, and its registered number is 3946303.
This condensed consolidated half-yearly financial information was approved for issue on 29 November 2012.
This condensed consolidated half-yearly financial information does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2012 were approved by the Board of Directors on 23 May 2012 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.
This condensed consolidated half-yearly financial information has been reviewed, not audited.
Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.