Corporate Travel Management’s FY2025 annual report reveals material accounting irregularities in the company’s UK subsidiary that resulted in significant revenue reversals and the restatement of financial statements for FY23 and FY24. The issues, identified during preparation of the FY25 results and with roots dating back several years, have prompted a comprehensive forensic accounting review and triggered a transition in group leadership at the highest level.
The emergence of these operational and accounting issues in August 2025 significantly delayed the finalisation of the financial statements as the Board undertook a rigorous investigation into the underlying contractual agreements, revenue recognition principles, and financial reporting processes within CTM UK. This delay, while frustrating for shareholders and stakeholders, appears to have been necessary to fully uncover the extent of the problems. Following completion of the forensic work, CTM has reversed revenue previously recognised in the UK subsidiary for FY25 and restated its FY23 and FY24 results. The company also announced in August 2026 that it had reached settlement terms with key impacted clients, though the full details and financial implications of these settlements were not disclosed.
The FY25 results show total revenue and other income of $643.4 million and underlying EBITDA of $83.6 million. More significantly, CTM has recorded customer related liabilities of $255.2 million, primarily associated with the UK business. These liabilities represent a meaningful balance sheet headwind and suggest the scale of revenue adjustments required and the extent of potential refunds or credits owed to affected customers.
Despite these material challenges, the underlying business has demonstrated considerable resilience. Client TTV retention remained at the company’s 97% benchmark, suggesting clients have remained generally satisfied with service delivery. The business continued to operate at full capacity without disruption to customer services, and strong activity continued across North America and Asia, indicating the issues are geographically isolated to the UK operation.
On 23 July 2026, the Board confirmed the appointment of Ana Pedersen as Managing Director and Group Chief Executive Officer, following her time as Acting Group CEO from February 2026. The structured approach to this CEO appointment, undertaken during an operationally challenging period, underscores the Board’s commitment to governance and leadership continuity.
For investors, the key questions centre on the final magnitude of revenue reversals, the adequacy of the $255.2 million customer liability provision, and the prospect of additional client settlements. The restatement of multiple prior year results also raises broader questions about the effectiveness of financial controls and reporting processes within the UK operation. Close attention to how management addresses root causes, implements remediation steps, and restores investor confidence in CTM’s financial governance will be critical to assessing the sustainability of the business recovery.
View the full ASX announcement (PDF)
About Corporate Travel Management Limited (ASX: CTD)
Corporate Travel Management Limited is a travel management solutions company that manages the procurement and delivery of travel services across Australia and New Zealand, North America, Asia, and Europe. The company provides corporate travel, meetings and events management, resources travel, sports travel, leisure travel, loyalty travel, and accommodation agency services. It was founded in 1994 and is headquartered in Brisbane, Australia.
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