Corporate Travel Management (CTM) faces further turmoil as it announces it will reverse £80 million of revenue related to unspecified customer contracts in the United Kingdom. The embattled corporate travel agent, which provides travel management solutions to businesses worldwide, has been suspended from trading since August after failing to release its accounts. At the time, the company cited necessary adjustments to the timing of revenue recognition within its UK operations.
Concerns have escalated as the accounting issues have persisted for several months, placing CTM’s position within the S&P ASX 200 Index at risk. Deloitte initially identified discrepancies in the accounts, prompting Corporate Travel to engage KPMG for a thorough review. This review encompassed approximately 47,000 documents and data analysis of over 1.5 million sales and purchase transaction lines, representing aggregate transaction values exceeding GBP400 million.
The company has also announced that its UK boss has been stood down. Separately, Corporate Travel anticipates an additional $13.9 million in provisions for its Australia and New Zealand (ANZ) region.
Despite the Australian Securities and Investments Commission (ASIC) granting an extension until December 31, Corporate Travel has stated it cannot provide a timetable for the release of its FY25 financial statements. The company, which offers services like booking flights and accommodations for corporate clients, is working to resolve the issues as swiftly as possible.
