CTM $42.1mil profit from global growth

CTM $42.1mil profit from global growth
By Kate Webster


Corporate Travel Management (CTM) today reported a record $42.1mil profit for the financial year ending 2016, the results driven by new client wins in all markets.

CTM’s global operations continued to grow market share, with a whopping $3.58 billion in total transaction value, up 35 percent on last year, and new regional account wins every four weeks delivering record profits in every region.

CTM managing director and founder Jamie Pherous said the past 12 months continued to show the value of a globally-focused travel management company that could weather challenges in individual markets, growing by leveraging local expertise, and supported by business-wide technology innovations.

“Our business continues to strengthen its position, with record operating cash flow conversion of 120 per cent reflecting the success of the model despite significant expansion,” Pherous said.

CTM’s underlying EBITDA was $69.0m, up 41 percent on the prior year and is slightly above previous upgraded guidance of $68.0m.

“This year’s financial results are a measure of our success in delivering for our clients; our global network provides benefits in technology, service, and scale, and we are winning and growing client accounts because of the recognition of our international capabilities.”

New client wins and an increase in existing client accounts accounted for 80 percent of profit growth, something Pherous said came from the network in place.

The company prioritised the integration of new acquisitions, including US-based Montrose Travel and Travizon Travel.

“Already we are seeing positive synergies from these new regions, and we have retained key staff and clients who are excited about working for, and with, a global, industry-leading business.

The CTM Board has declared a final, fully-franked dividend of 15 cents per share, to be paid on 6 October bringing the total annual dividend to 24 cents per share.

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