Highlights

  • CTM expects revenue restatements of up to GBP 58.2 million for FY23 and FY24.
  • FY25 revenue reversals of up to GBP 19.4 million are anticipated.
  • FY25 guidance withdrawn amid delays in finalising financial statements.

Corporate Travel Management (ASX:CTD) has provided an update on the delay in releasing its FY25 financial statements, following earlier announcements made in August and September 2025. The delay relates to issues identified in the company’s UK operations regarding the recognition of revenue in prior reporting periods. As a result, the timing for finalisation and release of the FY25 accounts remains uncertain.

The matter was initially identified when Deloitte highlighted potential material adjustments linked to the European region. In response, CTD’s board engaged KPMG in the UK to conduct a forensic review of selected aspects of the CTM UK group’s financial statements for FY23 to FY25.

Scope of the KPMG Forensic Review

KPMG’s work has involved a detailed assessment of approximately 47,000 documents and data analysis of more than 1.5 million sales and purchase transaction lines, representing aggregate transaction values exceeding GBP 400 million. Draft interim reports received on 23 November 2025 identified areas of concern relating to how revenue was recognised.

The primary issue relates to revenue recognition for certain large UK customer contracts carried out between 2021 and 2023 that have since concluded. Revenue attributable to these concluded customer contracts totals GBP 45.4 million. In addition, KPMG identified concerns around other revenue recognition practices within the CTM UK group, including transactions involving Corporate Travel Management (North) Ltd.

Expected Restatements Across Reporting Periods

Based on KPMG’s interim findings, CTD expects to reverse revenue previously recognised in FY23 and FY24, resulting in material restatements to the audited accounts for those years. The total revenue expected to be reversed across FY23 and FY24 is up to GBP 58.2 million in aggregate. Corresponding financial liabilities reflecting potential customer refunds will also need to be recorded retrospectively.

For FY25, CTD anticipates other revenue reversal adjustments of up to GBP 19.4 million. These adjustments relate to refunds due to customers and circumstances where contractual uncertainty means the revenue is not considered “highly probable” under AASB 15. CTD noted that further restatements or adjustments may be required as KPMG’s review continues.

Operational and Governance Actions

In response to the interim findings, CTD has commenced engagement with impacted UK customers and initiated a review process covering the concluded customer contracts, with this process expected to extend into 2026. The company has also begun reviewing financial processes and record-keeping within the CTM UK group and has initiated an external governance review to assess why the issues were not identified earlier.

Separately, CTD disclosed that its FY25 financial statements will include additional provisions of AUD 13.9 million related to the ANZ region. These provisions, primarily linked to expected credit losses on receivables from 2022 to 2024, are unrelated to the European matters.

Share Price Snapshot

CTD was trading at AUD 16.070 per share as of 28 November 2025.