Corporate Travel Management (CTM) has responded to a scathing report released by VGI Partners which questioned its accounting and the scale of its business.
Speaking at CTM’s annual general meeting, chairman Tony Bellas said the board is concerned about the potential impact on shareholders from the claims made in the report, which he said are not “supported by the facts”.
“The board acknowledges two issues, one of which relates to the need for the company to keep its website updated with its office locations,” he said, referencing VGI’s claims that CTM has exaggerated their global footprint by running “phantom” offices.
“The second relates to not using the term ‘patented’ in relation to its proprietary technology,” he continued.
“In the board’s opinion, the report either misunderstands or misrepresents the company’s financial performance, governance and business model.
“The detailed response issued by us this morning comprehensively addresses all of VGI’s issues.”
Bellas said CTM have approached VGI Partners seeking a meeting to explain the company’s response and ask that the report be corrected or withdrawn but they have not yet received a response.
“VGI has been very clear about its intention to benefit from a decline in the company’s share price,” he said.
“The timing of this report is unfortunate because it does not take into account the company’s excellent performance record and continued successful execution of strategy.
“The company is in great financial shape.”
Despite CTM’s comprehensive response to VGI’s claims, shares lost more than a quarter of their value in early morning trading today when the company lifted their self-imposed trading halt.
CTM also announced that despite Bellas’ intention to retire from the board at the conclusion of today’s AGM, the board have asked him to stay on for the time being.
“In light of the events of the past few days and the need to maintain stability, the board of CTM has today resolved to appoint Mr Bellas to fill a casual vacancy of the Board, effective immediately at the conclusion of the AGM,” the company said.