Shares fall as HR trims forecast

Hogg Robinson’s shares plunged to a new low point after the travel and business support services group said full-year earnings would miss expectations by about 10 per cent.

The group blamed weakness in its corporate events and small and medium-sized business, and expense management unit contract delays for the expected profit shortfall, prompting the shares to sink 21.7 per cent to 41½p.

Earnings before interest, taxation, depreciation and amortisation for the year ending March 31 are forecast to come in at about £40.5m, below a consensus estimate of £45m. The Basingstoke-based group said it expected revenues to increase from last year. It did not expect its dividend to be affected.

David Radcliffe, chief executive, said: “This trading setback is disappointing but we are taking, and will continue to take, decisive action to mitigate the effects of the economic downturn …”

HR, the fourth-biggest global corporate travel business, was taken private in 2000. It relisted at 90p in October 2006. Shares have since fallen more than 50 per cent. Beverweerd Investments has built up a 10 per cent stake in HR.