Today, Corporate Travel Management Ltd (ASX: CTD) reported unaudited first-half (1H26) revenue of $348.5 million and underlying EBITDA of $77.7 million, alongside further progress on its UK remediation plan.
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What did Corporate Travel Management report?
- Revenue and other income of $348.5 million for 1H26 (unaudited)
- Underlying EBITDA of $77.7 million, representing an EBITDA margin of 22.3%
- Cash balance at 31 December 2025 of $121.2 million, down from $124.0 million at June 2025
- Capex of $19 million aligned to technology and strategic commitments
- Client retention remained strong at or above 97% across all main regions
- Payments of $15 million made to key UK customers in December 2025 as part of remediation
What else do investors need to know?
The company continues to work through the UK forensic accounting review, targeting completion in March 2026. This process includes a remediation plan, involving staged payments to impacted UK clients, to enable release of the overdue FY25 audited accounts.
Outside the UK, reviews found no evidence of similar issues in other regions. Trading conditions remain challenging, with new client sales slightly lower in December reflecting seasonality and some client caution. Nevertheless, client retention and service delivery remain strong, with no major losses reported.
A revised IATA agreement and remediation payments impacted working capital and cash flow during the half-year. The company has amended its debt facility, maintaining sufficient liquidity with a $140 million facility and an undrawn revolving credit component.
What did Corporate Travel Management management say?
Acting CEO Ana Pedersen said:
Our trading performance reflects both the resilience of the business and the quality of our client offering in the face of challenging circumstances.
Our focus on superior customer service, relationship management and enhancing client outcomes coupled with our proprietary technology continues to support customer retention and strong new client wins during the half. We do expect some moderation through the remainder of the financial year, as the uncertainty associated with the audit process has influenced the timing of both renewals and new business conversion.
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.
As these key steps are completed, they will provide enhanced confidence to customers and our team. More broadly, we continue to improve governance, controls and systems across the business, and we recognise there is still more work to do as we complete the review and embed these improvements.
What's next for Corporate Travel Management?
CTM expects the finalisation of its UK review and remediation plan to enable the release of its delayed FY25 audited results, as well as the 1H26 reviewed financials. The company is targeting reinstatement of ASX share trading in the second quarter of calendar 2026, subject to approvals.
Looking ahead, CTM foresees some softness in trading over 2H26 as audit-related uncertainty continues to influence client decision-making. The business remains focused on customer retention and technology investment to drive long-term growth.
