Corporate Travel Management (CTM) has recorded an $8.2 million loss for FY20, but says its full-year financial performance was better than expected.
The loss is a fair swing away from the $86.2 million profit the company recorded last financial year, but discarding one-off costs, CTM enjoyed an underlying profit of $32 million in the 12 months to 30 June 2020.
Underlying earnings were down 57 per cent to $65 million, revenue fell 29 per cent to $316.4 million, and total transaction value (TTV) also dropped 29 per cent to $4.6 billion.
CTM’s operations in Australia and New Zealand saw a 43 per cent drop in underlying earnings to $29.4 million during FY20. Revenue for the region declined 36 per cent to $78 million, and TTV shrunk 28 per cent to $958.8 million.
Jamie Pherous (pictured above), managing director at CTM said: “Revenue has been ahead of our May market update expectations, with high exposure to domestic essential travel.
“This, coupled with our flexible business model and rapid response to COVID-19, enabled CTM to deliver full-year results that exceeded our market update provided in May.
“Because we moved early and rapidly with redundancies and other cost reductions, we have been able to stem our losses very quickly, and do not expect any further significant one-off costs in the current FY21 financial year.
“Our business model also positions the business for a rapid return to profitability, with only a marginal increase in domestic travel activity from current levels.”
CTM reported $60 million net cash at 30 June 2020 and has held on to $55 million of that in as of 17 August 2020.
In bad news for shareholders, the company said its FY20 interim dividend, previously deferred to October, has been cancelled, and there will be no final dividend.