One of the UK’s largest travel management companies HRG has announced a drop in revenues and profit.

HRG saw revenues fall by 9% to £155m and profits after tax dip by £0.3m to £7.5m in the six months to the end of September compared to the same period last year.

After exceptional items this profit was reduced to £2.2m – still in the black, but about half of what it was last year.

Chief executive David Radcliffe said the TMC had shown a “resilient performance during the recession”.

“We have reduced costs in line with activity, albeit with a lag.”

He also pointed to a high client retention rate of more than 90% and a number of new business wins.

He also claimed the group’s fee-based business model works, as the lower frequency of travel requires cost reduction.

HRG highlighted a number of industry trends that have been shaping the corporate sector.

These include:

– corporates trading down their class of travel and accommodation

– less frequent travel

– more use of advance bookings and restricted fares

– re-negotiation of supplier deals

– increased use of online bookings

– stronger policy compliance

– a greater use of technology

However, Radcliffe pointed to some recent signs of stabilisation which include clients beginning to relax their travel policies.

Radcliffe also stated that HRG’s “diverse and stable” portfolio of clients will help the group in the hoped for pick-up in the market.

He added: “The market will recover but we remain cautious about [the] pace [of recovery].”