Corporate Travel Management halts ASX trade amid European arm accounting error
One of Australia's largest travel booking companies faces an uncertain future as accounting irregularities force an extended trading suspension.
Shares in Corporate Travel Management will remain suspended from trade on the ASX for as long as a month, as the company struggles to get on top of accounting errors dating back years.
The travel booking company released an update to the ASX on Tuesday, revealing its full-year results for the 2025 financial year would also have to be pushed back a second time, until September 25.
It follows the discovery of an accounting error in previous financial statements, that prompted CTM to enter a trading halt last Friday.
The error was picked up by new auditor Deloitte and is expected to reduce 2025 earnings but increase prior years’ earnings. A “third party” has been employed to help expedite the work, which concerns CTM’s European region only.
The company was expected to come out of the trading halt by Tuesday, but instead CTM requested a voluntary suspension of its shares.
A note to the ASX, signed by company secretary Shelley Sorrenson, said “the company is not yet in a position to make an announcement regarding a potential rectification and restatement of previous financial statements”.
“In addition, as a result of these issues the company also does not expect to finalise and announce its FY25 accounts by the end of August,” Ms Sorrenson wrote.
“The company requests a voluntary suspension remain in place until the company releases an announcement to the market of FY25 accounts, and a definitive position on any restated accounts.”
She confirmed CTM was targeting September 25 for the release of its full-year accounts.
A further update from the CTM board explained the error was related to when certain revenues and costs were recognised, between the 2025 financial year and prior reporting periods.
Although it was likely the issue would reduce this year’s earnings and inflate those from prior years, the board said there was no impact to operating cash.
“The CTM Group generated strong operating cash flows in FY25 with $124m of cash on the balance sheet and no debt at year end,” the statement said.
“The final amount of any corrections (if required) and the financial years to which they may apply are still being determined.”
RBC Capital Markets analyst Wei-Weng Chen suggested the timeframe proposed by CTM seemed quite long, and an update may happen anytime in September.
Mr Chen said full year earnings of around $150m were expected, after a number of downgrades saw consensus expectations slide from $250m to $166m.
“In recent disclosures, the company noted the restatements would constitute a ‘material correction’,” said Mr Chen.
“We would take this to mean at least a circa 10 per cent reduction.”
Deloitte uncovered the accounting error after replacing PwC in October.
The first sign that all was not well was when CTM pushed its results announcement back from August 20 to 28, triggering a dip in the share price from $16.50 to $15.57.
Shares in CTM last traded at $16.07.
Jamie Pherous founded Corporate Travel Management in Brisbane in 1994, and has built the group into one of the world’s largest travel management companies.
It celebrated 30 years in business last year but flagged a financial setback earlier this year as a result of US tariff turmoil, wiping $30m from revenues.
Flight Centre and Intrepid Travel have also flagged subdued bookings in the US as a result of tariff uncertainty and the exchange rate.
Originally published as Corporate Travel Management halts ASX trade amid European arm accounting error
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