Corporate Travel Management (CTM) is witnessing some positive signs of recovery despite recording a $57.8 million statutory loss for the 2021 fiscal year.
The full-year loss is a blowout from the $10.6 million loss the ASX-listed company suffered in FY20.
CTM’s overall revenue fell 43 per cent to $200.5 million in the 12 months to 30 June, and total transaction value (TTV) plummeted 65 per cent to $1.6 billion.
While CTM reported an underlying EBITDA loss of $7.2 million for the full year, it enjoyed a $13.6 million underlying EBITDA profit in the fourth quarter – a $19.1 million turnaround on the previous quarter, resulting in a positive underlying EBITDA result of $8.1 million for the second half of FY21.
CTM managing director Jamie Pherous said the last-quarter rally was led the group’s increasing exposure to recovery momentum in North America and Europe, which was helped by the company’s recent acquisition of US travel firm Travel & Transport.
“Significant progress in administering vaccines and reopening the economy in these regions gives us reason to be optimistic about FY22,” he said.
“The integration of Travel & Transport is progressing well and has helped us to capitalise on the momentum in North America and grow our exposure to the world’s largest travel market.”
And, despite the underlying EBITDA for CTM’s Australian and New Zealand operations falling 77 per cent in FY21, the company’s local operations still managed to stay profitable, finishing with underlying EBITDA of $7.4 million.
CTM finished the last financial year with no debt and $99 million in cash, and the company is targeting a return to dividend payments in the 2022 calendar year.
“We moved quickly to reduce costs in FY20 and have successfully managed to balance cost discipline with service levels, so we are in a strong financial position to continue investing in our technology solutions and exploring value-adding acquisition opportunities,” Pherous said.
“After the Travel & Transport acquisition, CTM is now estimated to be the world’s fourth-largest global travel management company.
“Through our recent acquisitions, realised synergies, and permanent reductions to our cost base, we expect the business will deliver material accretion to group earnings post-COVID.”