CTM shares frozen after accounting error discovery dating back years
A bombshell accounting error has forced CTM to halt share trading just days after delaying its annual results.
Trading in Corporate Travel Management shares has been halted on the ASX after the company became aware of an error in its financial statements dating back years.
In a note to the ASX requesting the trading halt, CTM company secretary Shelley Sorrenson said the error came to light in the course of preparing the consolidated 2025 results.
“A material correction will need to be made to certain aspects of the company’s previous financial statements,” said Ms Sorrenson.
“The final amount of this correction and the years to which it applies is still being determined.”
An announcement regarding the rectification and restatement of financial statements will be released at the time of the trading halt being lifted, which will be next Tuesday or earlier pending the update.
The trading halt follows a delay in the delivery of CTM’s full year results which was attributed to new auditor Deloitte, who replaced PwC in October.
CTM had originally scheduled its results for August 20, but five days beforehand pushed them back to August 28.
The postponement triggered a big sell-off with the share price plunging from $16.50 to $15.57.
Since then, the share price had recovered to $16.07 at the time of the trading halt.
Headed by Jamie Pherous, CTM has grown from a single office in Brisbane to become one of the world’s largest travel management companies.
In 2024, CTM delivered a 21 per cent rise in underlying earnings to $201.7m and a 22 per cent improvement in net profit to $113.3m.
A market update in May, however, warned of a $30m impact to 2025 earnings due to “tariff uncertainty in North America and Asia causing reductions in client activity”.
At the time Mr Pherous said the hit to revenue had “happened really quickly” as a result of companies pausing travel plans until there was greater economic certainty.
“We’re not a lone wolf here, everyone is being impacted by tariffs,” he told an investor call.
“What we can control we’re pleased with. We’re winning business, we’re still making profit, we’re still growing through this.”
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