Corporate Travel Management Pays $15M to UK Clients, Targets Q2 2026 Reinstatement

Corporate Travel Management advances UK remediation with $15 million in customer payments

Corporate Travel Management has reported progress on its Corporate Travel Management UK Remediation alongside an unaudited trading update for the first half of FY26. The company announced that $15 million has been paid to key impacted UK customers in December 2025, marking tangible progress in resolving accounting irregularities identified during a forensic review. CTM stated it has now identified a “clearer path forward” with completion of the forensic accounting review expected in March 2026. Subject to finalising the remediation plan and receiving necessary approvals, the company is targeting issuance of audited FY25 financial statements, reviewed 1HFY26 financial statements, and reinstatement of ASX trading in Q2 calendar year 2026. A parallel review found no material issues of a similar nature outside the UK.

What is a corporate remediation program and why does it matter?

When accounting irregularities are identified, companies undertake structured remediation programs to resolve issues, restore stakeholder confidence, and meet regulatory requirements. Understanding this process helps investors assess the pathway from suspension to normalised trading.

1. Forensic accounting reviews examine historical financial records to identify the extent and nature of discrepancies. These reviews are conducted by independent specialists and can take months to complete as they verify transactions across multiple periods.
2. Customer remediation payments compensate affected parties where pricing errors or billing discrepancies occurred. The $15 million paid to UK customers in December 2025 represents CTM’s commitment to resolving identified issues directly with impacted clients.
3. ASX reinstatement requirements mandate that suspended companies must finalise audited accounts and demonstrate appropriate governance improvements before resuming trading. CTM’s target of Q2 2026 provides a defined endpoint to the current uncertainty.
4. Timeline certainty reduces investor ambiguity. A structured remediation plan with completion milestones allows the market to assess progress objectively rather than facing open-ended suspension.

Trading performance shows operational resilience despite ongoing review

CTM’s 1HFY26 results demonstrate that business operations have continued with minimal disruption during the extended review period. The company reported Revenue and Other Income of $348.5 million with Underlying EBITDA of $77.7 million, translating to an EBITDA margin of 22.3%. Client retention remained strong at or above the 97% benchmark, supported by CTM’s focus on customer service and proprietary technology. The company noted that all customer-facing teams and systems remain fully functional, with no interruption to service obligations. However, management acknowledged that trading conditions for the next half year remain difficult to predict, with some softness anticipated in 2H26 as the prolonged uncertainty influences new client decision-making timelines.

These figures suggest the underlying business franchise remains intact despite the accounting review. High retention rates indicate customers are maintaining their relationships with CTM rather than switching providers during this period of uncertainty. The 22.3% EBITDA margin reflects operational quality, though investors should note these figures are unaudited and subject to adjustment pending completion of the FY25 audit and remediation process.

Regional performance breakdown

CTM’s geographic diversification provided stability across multiple markets during 1HFY26:

• ANZ: Delivered a solid first half with 99% TTV retention and 98% client retention. Strong new client wins supported performance, though conversion momentum and timing of wins softened in the latter period. Organisational and leadership changes aimed at improving alignment and efficiency.
• North America: Demonstrated resilience despite a 43-day government shutdown and macro uncertainty. Achieved 99% TTV retention and 97% client retention, with over 80% online booking adoption. Strong execution across sales, retention and technology adoption positions the business for recovery as conditions stabilise.
• Asia: Delivered solid year-on-year growth with 100% TTV retention. A strong forward sales pipeline is expected to support higher trading volumes over the medium term, with margin improvement anticipated from contract repricing, supplier initiatives and continued automation.
• Europe: Achieved strong growth following mobilisation of previously secured corporate and government contracts, recording 99% corporate TTV retention and 96% client retention. Performance is expected to moderate in 2H26 as certain government contracts conclude and corporate activity remains challenging.

Cash position and liquidity framework

CTM reported a cash position of $121.2 million at 31 December 2025, compared to $124.0 million at June 2025. The company explained that a $56.4 million decrease in cash during December 2025 reflected the working capital impact of revised IATA arrangements, the $15 million payment to impacted UK customers, and ordinary course supplier payments. Non-recurring costs of $11.4 million related primarily to expenses associated with the ongoing remediation program.

The company has an amended debt facility totalling $140 million, comprising a $65 million bank guarantee facility and a $75 million revolving credit facility ($40 million unrestricted and $35 million subject to lender consent). The timing, total quantum and structure of any further remediation payments remain subject to finalisation and are expected to be financed from medium-term cash flows and available liquidity. Capital expenditure of $19.0 million during 1HFY26 remained aligned to strategic commitments, focused on CTM’s proprietary technology, automation and strategic capital management.

The company’s liquidity position provides headroom to manage ongoing remediation obligations while maintaining operational capacity. The debt facility amendments, announced on 23 December 2025, provide access to additional capital if required to complete the remediation process.

Management outlook and path to resolution

Ana Pedersen, Acting Group CEO

“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.”

Management emphasised that completing these key steps will provide enhanced confidence to customers and the team. Pedersen acknowledged that work continues on improving governance, controls and systems across the business, recognising further work remains as the review is completed and improvements are embedded. The company noted that new sales closures moderated in December 2025, reflecting seasonality, sales cycle timing and a degree of client caution in response to the current environment. Limited evidence of structural client loss has emerged to date, with sentiment closely monitored and early-renewal initiatives underway supporting revenue certainty.

Corporate Travel Management (ASX: CTD) continues to engage directly with impacted customers, with recent in-person meetings involving members of the board and executive team. The company’s target of achieving audited FY25 financials, reviewed 1HFY26 financials and ASX trading reinstatement in Q2 calendar year 2026 provides investors with a defined timeline for resolution, though this remains subject to finalising the remediation plan and receiving relevant necessary approvals.

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