Overview
Corporate Travel Management is currently at the center of a scandal related to overcharging, which could surpass $100 million. A review has necessitated revisiting UK revenue recorded over the past three financial years. This includes:
- £58.2 million ($117.8 million) for the 2023 and 2024 fiscal years.
- £19.4 million planned for the 2025 financial year is also under scrutiny.
Due to serious inaccuracies in their accounts, shares in the $2.3 billion company will stay suspended until at least 2026. The UK chief executive, Michael Healy, has been temporarily removed from his position, and KPMG has been engaged to investigate the growing accounting issues.
Financial Implications
The company has communicated that it will likely miss the deadline of December 31 for updated accounts due to:
- £77.6 million ($158 million) in UK revenue from 2023 to 2025 needing reversal or refunds to clients.
- An additional $13.9 million set for bad debt provisions required adjustments in their Australian accounts.
“We recognize the impact this situation has had on our shareholders and affected UK clients, and we unreservedly apologize,” stated Jamie Pherous, the founder and managing director. “While this work continues, we remain focused on delivering quality service to our clients across all markets.”
Pherous has built the company since it debuted on the ASX in 2010, employing an aggressive growth model through acquisitions in the UK, Europe, Asia, and North America.
Shares have been inactive since September 1.
