Corporate Travel Management (CTM) has sought to reassure investors in the wake of a significant overcharging scandal involving its UK operations that resulted in a substantial financial loss and leadership changes. The company reported a net loss of A$346.7 million for the 2025 financial year, largely driven by A$356.6 million in impairments linked to the scandal and other writedowns.
The issues came to light after CTM’s shares were placed in a trading halt for over a year while the company re-examined its financial statements. The Australian Securities Exchange (ASX) will decide whether to lift the suspension once CTM releases its full-year 2026 results, expected next week.
The crisis centered on CTM’s UK division, which was found to have overcharged clients by more than A$250 million. The firm is currently in the process of repaying the affected amounts. Former UK chief executive Michael Healy was dismissed after investigations identified him as solely responsible for orchestrating the scheme, which included creating fake agreements with clients for repayment arrangements dating back to July 2018.
Further revelations indicated the UK business employed inappropriate revenue recognition practices not used in other parts of CTM. Specifically, it accounted for the difference between the client’s booking cost and the amount paid as revenue, a method that violated standard accounting norms.
CTM chairman Ewen Crouch explained the lapse by pointing to operational silos within regional units, saying, “in some areas, regional operations functioned in silos,” which contributed to the prolonged oversight failures. Company founder and former CEO Jamie Pherous stepped aside in February amid shareholder pressure but remained with CTM as a consultant for six months following his resignation.
In an effort to address the financial fallout, CTM recently secured a A$175 million credit facility from Pacific Equity Partners dedicated to covering repayments stemming from the scandal. Chief financial officer James Spence acknowledged the need for enhanced governance and financial controls, stating the company was actively working on improvements to restore confidence among clients and shareholders alike.
Despite the challenges, Spence highlighted the company’s resilience, noting stable performance in the 2026 financial year. “There’s an underlying profitable business with improved governance and that sets a good chart for going away from here,” he said.
Chairman Crouch defended the board’s response throughout the crisis, saying it provided steady leadership and remained committed to overseeing the remediation process. The board is also focused on succession planning and management transitions.
New CEO Ana Pedersen expressed optimism about the company’s outlook, forecasting an increase in underlying earnings from A$83.6 million in 2025 to A$113.6 million in 2026. She emphasized the company’s success in retaining 97 percent of client transaction value in the year to June 30 and noted ongoing business wins. “We’ve made significant progress strengthening the foundations of the business. We have stronger leadership,” Pedersen said, adding that efforts are underway to expand executive leadership and enhance business capabilities.