UK business starts to splash the cash as corporate travel firm grows

British corporate travel firm Hogg Robinson Group Plc posted a 16% rise in full-year underlying pretax profit, beating expectations, as UK businesses spent more money on client travel, and said it expected further progress this year.

"We anticipate the positive momentum that we have seen in our markets to continue," Chief Executive David Radcliffe said in a statement.

Air freight grew by over one fifth in 2010, in a sign of global economic recovery, the airline body IATA said on February 2.

April-March pretax profit before exceptional items was £32.9 million, compared with 28.4 million pounds last year. Revenue grew 10% to £358 million.

Client travel transaction activity was up 17%, while travel spend grew 23%.

Analysts on average were expecting a pretax profit of £32.2 million, according to Thomson Reuters.

The company declared a final dividend of 1p, taking the total dividend for the year to 1.5p.

In February, Hogg Robinson had raised its profit expectations for the full year on a boost in travel activity, particularly in Asia Pacific.

Hogg Robinson shares, which have nearly doubled in value over the past year, closed at 58p on Tuesday on the London Stock Exchange, valuing the company at about £172 million.