Travel management company Corporate Travel Management announced on Thursday that a 'forensic' accounting review of its UK operations is expected to conclude in March.
Upon completion, the company plans to release its long-delayed full-year 2025 financial statement. CTM on Thursday also published unaudited financial results for the six-month period ending Dec. 31, 2025.
The Australia-headquartered company previously disclosed that its UK division had overcharged clients to the tune of £77.6 million after suspending its shares from trading after suspending its shares from trading on the Australian Stock Exchange (ASX) last August. CTM expects to resume trading on the ASX in the second quarter of 2026.
In its latest trading update CTM said it has identified "a clearer path forward" after following repayments totaling A$15 million (US$10.1 million) to "key impacted UK customers" in December 2025.
The company further stated that the amount and timing of any additional payments remain subject to a remediation plan that is currently being finalized. This plan is expected to be funded through medium-term cash flows and available liquidity, the company said.
Additionally, CTM reported that it has conducted a review to determine whether issues similar to those identified in the UK were present in other regions. The results of this review "did not identify any material issues of a similar nature outside the UK."
Business operations have continued "with minimal disruption" during the ongoing review of its FY23-FY25 financial statements and FY25 audit. "Operations, customer engagements and supplier commitments continue to progress in the normal course," the company said.
Acting group CEO Ana Pedersen stated: "The finalisation of a remediation plan is well progressed, including constructive discussions on the timing of staged payments.
"Importantly, we are making progress with KPMG and certain impacted UK customers, which is giving us a much clearer path toward resolving and finalising the outstanding matters. As these key steps are completed, they will provide enhanced confidence to customers and our team.
"More broadly, we continue to improve governance, controls and systems across the business, and we recognise there is still more work to do as we complete the review and embed these improvements," she said.
CTM has an existing debit facility of A$140 million, comprising a bank guarantee of A$65 million and A$75 million in undrawn revolving credit available for cash liquidity, A$40 million of which is unrestricted while A$35 million remains subject to lender consent.
Unaudited Trading Update
CTM reported revenue of A$348.5 million (US$247.5 million) for the six months to 31 December, with A$121.2 million in cash.
The TMC said client retention "remains strong" with "limited evidence of structural client loss". However, it expects "some softness" in the next six months, stating trading conditions "remain difficult to predict and may result in softer performance, reflecting the current situation and its impact on new client decision-making timelines."
CTM reported a 99 percent total transaction value retention rate across its operations in Australia and New Zealand, North America and Europe. Meanwhile, its Asia business delivered "solid year-on-year growth" with 100 TTV retention and 99.9 percent client retention.
In Europe, the company reported "strong growth" driven by higher transaction volumes "following mobilisation of previously secured corporate and government contracts" and a 96 percent client retention rate. However, performance is "expected to moderate" over the next six months as certain government contracts conclude and new sales "remain challenging." The UK government is among clients affected by CTM's accounting discrepancies and in December launched an investigation into the TMC's European business operations.
In Australia and New Zealand, the company delivered "solid" results for the period, supported by "strong" new client wins and a 98 per cent client retention rate.
"Performance benefited from organisational and leadership changes aimed at improving alignment, efficiency and long-term growth capability," the company said. CTM's former CEO in Europe and UK Michael Healy was dismissed in December, while Pedersen, formerly the company's chief commercial officer, was appointed to her current role earlier this month after CTM founder and managing director Jamie Pherous stepped down amid the accounting turmoil.
The publication of CTM's unaudited figures comes a day after Flight Centre Group, a key competitor in the ANZ region, reported "accelerated" earnings growth and "heightened" RFP activity for the period.