CTM strong after first half results

Corporate Travel Management (CTM) managing director Jamie Pherous said the company has had an excellent first half in light of tough business conditions.

CTM saw growth of its market share in all regions through winning and retaining clients, achieving record first half profits, and positive effects of CTM’s acquisitions.

“We achieved solid organic growth in every acquired business whilst integrating and harmonising these great businesses into the Group,” Pherous said.

As a result, CTM scored an underlying EBITDA of $20.2 million, representing a 94% growth on the previous year, and EPS growth of 47%.

This marks the success of the company in growing the business, while still integrating acquisitions into the Group, and has led CTM to upgrade its full year profit guidance.

The Group continues to invest in CTM’s SMART client-facing technology, which is being rolled out to global CTM clients, strengthening the company’s client facing tools and offerings.

CTM was awarded Best Travel Management Company in the UK, Asia and Australia over the period, while all acquisitions so far contributing positively to the Group.

Pherous said the focus for the remainder of the 2015 financial year would be on enhancing local client service through tech developments and new client wins, while focusing on scalable organic growth in all regions.

The Australia-New Zealand region saw strong organic growth, with the total transaction value leaping 15% thanks to strong value proposition around personalised service, technology and delivering ROI.

North America saw the EBITDA soar 100%, while organic profit growth rose 40%, demonstrating that the group continues to build market share.

CTM now operates under one brand in 18 cities across eight states, with a stronger second half expected as a result of momentum and seasonality.

Asia brought in a solid top line growth of 8%, despite some negative impacts on the leisure segment resulting from the Hong Kong protests throughout the first half, with the most pleasing result being the scale created by CTM’s acquisitions, which meant that the top line growth translated into 15% profit growth.

The company has big plans for this region, and intends to build upon structure and continue to implement client facing tools to allow Asia to service the growing pipeline of regional and global business led by the rest of the CTM Group.

Over in Europe, CTM acquired Chambers Travel Group on January 2 2015, meaning it had no impact on first half results.

However, with an already a high level of engagement shown by the Chambers management team and new client wins above expectations, CTM expects a steady, successful June 2015 result.

The CTM Board has declared an interim fully franked dividend of 6 cents per share, to be paid on April 10 2015.

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