Corporate Travel Management (CTM) moved to address market concerns regarding potential accounting adjustments. The company advised that Deloitte, in preparing the FY25 results, indicated that adjustments ‘may’ be necessary regarding the timing of revenue and cost recognition between FY25 and earlier reporting periods. Corporate Travel provides travel management solutions to businesses, offering services such as booking flights, accommodation, and ground transport. The company aims to optimise travel programs and reduce costs for its clients.
In response to these initial findings, Corporate Travel Management requested a trading halt to fully assess the implications. The company clarified that the potential adjustments are isolated to its European operations. CTM anticipates that any restatement would likely increase prior year earnings while reducing earnings for the current fiscal year.
The group highlighted its strong operating cash flow generation in FY25, with $124 million in cash and no debt at year-end. Corporate Travel Management expects to release detailed FY25 results and FY26 guidance upon finalisation of the accounts, consistent with its standard procedure. Furthermore, the company stated that trading for FY26 has commenced positively.
The trading halt allowed Corporate Travel to manage the flow of information and reassure investors about the limited scope and expected impact of the accounting adjustments. While the adjustments are still being assessed, the company’s strong cash position and positive trading outlook for FY26 provide some reassurance.
