Corporate Travel Management has reached binding offers with U.K. clients covering 86 percent of the £118 million it owes due to long-running overcharging and accounting errors, the travel management company announced Friday.
In a filing with the Australian Securities Exchange, CTM said the concluded negotiations cover £102 million of the refund liability reported earlier this year. With those agreements, CTM will refund a total of £87 million to the affected customers, £11 million of which has already been paid and the balance to be refunded in stages through Sept. 30, 2027, according to the filing.
The TMC said it "continues to engage" with customers accounting for the remaining £16 million of the liability and expects those negotiations to conclude "shortly."
The U.K. government accounted for the bulk of the overcharging, reportedly in part related to hotel contracts during the Covid-19 pandemic. The U.K. government has been conducting its own investigation into the matter, and the U.K. Home Office in a statement to BTN stablemate The Beat confirmed It had "reached agreement [with CTM] to recover significant sums for the U.K. taxpayer."
Those liabilities relate to accounting in the 2025 fiscal year and earlier. CTM in April also disclosed "contractual uncertainty" regarding "a limited number of contracts" that CTM U.K. entered into in 2025, which it estimated would result in the reversal of about £10 million in revenue related to the first half of the 2026 fiscal year. CTM in its filing said it received binding offers from those affected customers to pay a total of £12 million, half of which relates to the first half of the 2026 fiscal year.
CTM is facing a deadline of Aug. 29 to publish its audited financial results to avoid potential de-listing from the ASX, on which it suspended trading last year as it began the audit of its financial reporting. As it has faced questions of solvency and investor support, the TMC has said it has maintained a high client retention rate and would be able to support refunds with future revenue.
In a statement, CTM managing director and group CEO Ana Pedersen said the agreements were a "major milestone" in emerging from the crisis.
"These agreements demonstrate that we can address legacy matters responsibly while continuing to deliver the high-quality service and support our customers rely on for their travel needs," according to Pedersen. "We remain focused on completing the remaining steps required to seek reinstatement of CTM's shares to trading on the ASX and look forward to updating shareholders on our progress."
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