Corporate Travel Management founder and managing director Jamie Pherous has stepped down following the company’s disclosure that its UK division had overcharged clients to the tune of $100 million.
Pherous, who founded the Brisbane-based company in 1994, will retire
from his executive and board roles with immediate effect and transition
to a “strategic advisory role” for the next six months, CTM announced today. Pherous remains the company’s largest individual
shareholder, with a “vested interest in CTM’s long term success,” he
said in a statement.
The company’s chief commercial officer Ana
Pedersen, who joined CTM in October 2024, has been appointed as acting
group CEO. Former BCD Travel president and CEO John Snyder has also been
brought in as a special advisor.
CTM chairman Ewen Crouch said
“now is the appropriate time to accelerate the transition to a refreshed
corporate structure” after the company dismissed its chief executive for Europe and the UK, Michael Healy, in December following revelations that it had overcharged a "small number" of UK-based customers, including the UK government.
Governments in both the UK and Australia have since launched investigations into the company’s accounts.
CTM’s financial troubles first came to light last August when it voluntarily suspended its shares
from trading on the Australian Securities Exchange after an audit
discovered accounting discrepancies across its European operations.
The
company’s shares remain suspended, while the publication of its FY25
financials has been repeatedly delayed. An update on the publication of
its 2025 accounts is expected this month.
“We recognize the
frustration and disappointment of our shareholders and are taking all
practical and responsible steps to address the issues that have arisen
and support CTM's shares being reinstated for trading on the ASX as soon
as possible,” Crouch said in a statement.
“Ana will lead the process of finalizing our FY25 financial accounts, while maintaining an unwavering focus on client service.”
Commenting
on her appointment, Pederson added: “My immediate priorities are to
bring clarity and confidence as we work toward CTM's shares being
reinstated for trading on the ASX. This means finalizing our accounting
matters with integrity and certainty, and, in partnership with the
board, strengthening governance and controls.
“At the same time,
we remain laser-focused on client delivery, which continues
uninterrupted, and on supporting our people, who are critical to our
success,” she said.
According to the company’s most recent
financial statement—an unaudited account for the three months to 30
September 2025—CTM reported a 6 percent year-on-year increase in
revenues to AU$180.2 million. earnings before interest, taxes,
depreciation and amortization also increased 29 percent year on year,
with Europe recording the strongest growth following “significant”
customer wins and an increased share in government panel contracts in
FY25, CTM said at the time of publication.
CTM
had also reported a 98 percent customer retention rate for FY25, along
with customer wins worth AU$1.72 billion. Between July and the end of September
2025, the company said it secured additional client wins to the value
of AU$430 million. On Sept. 30, 2025, the company reported a cash
balance of AU$168 million, with no drawn debt.
Tony O’Connor,
managing director at travel procurement consultancy Butler Caroye, said
the TMC’s remaining credit facility “might prove to be a lifeboat out of
this situation.”
“The two main threats to CTM's survival at this
point are litigation and liquidity: being sued by shareholders and not
having the cash to cover the client repayments, especially if it loses
accounts,” he said. “Leadership change is meant to signal accountability
at the top, a separation from previous ways, and seriousness about
remediation.”