Hogg Robinson : Interim Management Statement

22 July 2014

Hogg Robinson Group plc

('HRG', 'the Company' or 'the Group')

INTERIM MANAGEMENT STATEMENT

Ahead of tomorrow's Annual General Meeting, Hogg Robinson Group plc, the international corporate services company, announces its first Interim Management Statement for the year ending 31 March 2015, covering the period from 1 April 2014 to date.

Current trading and outlook

Market conditions have remained broadly similar during the current financial year to date to those seen in the second half of last financial year, with recovery continuing in the UK and North America, while Continental Europe and Asia have remained generally weak.However, sterling's strength against all the major currencies in which the Group's revenues are generated is having some translation impact.For the three months to 30 June 2014, client spend was down 3% (up 5% at constant currency) year on year, while client travel activity was higher by 5%.Revenue fell by 6% compared to prior year (up 1% at constant currency).

Trading activity with the Government of Canada grew steadily during the period since launch in early April, though at a slower rate than originally anticipated.In the event, related staff costs have therefore been higher than required.More broadly across the Group, attracted by lower transaction fees, client adoption of online self-booking of travel continued to grow during the period.In Continental Europe, we have also seen further softness in the SME market.Combined with strong competitor pricing, all of these factors have resulted in downward pressure on our top line, and earnings below our expectations during the financial year to date.

As in the past, we remain focused on maintaining a cost base that is appropriate to the market backdrop while ensuring that our usual high standard of client service is not compromised.We continue to see cost saving opportunities in the business and are accelerating our plans to reduce operating costs to match our revised expectations of client activity and business mix.

As a result of the lower than expected revenues during the first three months, together with the higher costs we maintained as the Government of Canada contract ramped up, our profitability for the first half of this year is likely to be significantly lower than in the six months to 30 September 2013.

At this early stage in the year, the actions we are taking to balance costs should materially improve the Group's overall performance in the second half, but it is unlikely the anticipated shortfall in trading in this first half can be recovered in full.We therefore now believe that trading for the full year is likely to deliver an outcome slightly below current market expectations.

David Radcliffe, Chief Executive of Hogg Robinson Group plc, commented:

"During the remainder of the year we will address the balance of costs versus revenues.It is unlikely that the associated benefits will fully offset the fall in first-half earnings, but we expect the full-year earnings impact to be significantly less than in the first-half.At the same time, we will continue to execute against our strategic priorities designed to grow our business in both our managed travel and technology sectors, and optimise our financial performance through the economic cycles."

Financial position

HRG's financial position remains robust and cash generation across the Group has remained strong through the period.

There have been no material adverse events or transactions that have impacted the Group's financial position since 31 March 2014 save for the information provided in this statement.

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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, AsiaPacific, Africa, Latin America and MEWA. Read the latest HRG newsand search our archives.

www.hrgworldwide.com

Forward-looking statements

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.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.

The release, publication, transmission or distribution of this announcement in, into or from jurisdictions other than the United Kingdom may be restricted by laws and therefore persons in such jurisdictions into which this announcement is release, published, transmitted or distributed should inform themselves about and observe such restrictions.Any failure to comply with the restrictions may constitute a violation of the securities laws of such jurisdiction.