Corporate Travel Management Limited

Steller Performance in FY18: Corporate Travel Management Limited (ASX: CTD) has delivered a strong set of performance in FY18 and accounted for 19% growth in Total Transaction Value (TTV) to $4,958.3 Mn as compared to the prior year. It was mainly driven by the strong transaction volume growth and business acquisitions. As a result, revenue and other income grew by 14% to $372.2 Mn in FY18 over the prior year. The growing market share was supported to achieve an underlying EBITDA of $125.4 Mn in FY18, representing 27% growth over the previous year, demonstrating the Company’s ability to execute its plan effectively. On a constant currency basis, underlying EBITDA came in about $126 Mn, marking the growth of over 27% on Y-o-Y basis, showing the strength of the underlying business. Statutory NPAT attributable to owners of CTD substantially increased by 41% and amounted to $76.7 Mn in FY18 against FY17. Hence, we expect that the Group will continue to grow market share particularly in regions where the CTM SMART Technology suit has been fully rolled out, ensuring strong growth ahead.


Financial Highlights (Source: Company Reports)

The company has declared a final dividend of 21.0 cents per share, which brought the total dividends for FY18 to 36.0 cents per share, a rise of 20% compared with the prior year. It will be paid on October 04, 2018 with the record date of September 07, 2018. Additionally, for FY 19, CTD expects underlying EBITDA to be in the range of $144 million to $150 million. Meanwhile, CTD stock has risen 35.31% in the past three months as on September 05, 2018 but is trading at a higher P/E of 46.05x. Hence, we put a “Hold” recommendation on the stock at the current price of $ 31.630, which is close to the 52-week high level.

Sealink Travel Group Limited

Strategic Investment for Future Growth: Sealink Travel Group Limited (ASX: SLK) reported NPAT degrowth of 7% to $22.1 Mn in FY18 as against prior year. It was primarily impacted by an after-tax effect of one-off acquisition-related expenses of $2.0 Mn and one-off start-up costs associated with the two new ferry services of $0.3 Mn during the period. As a result, Basic EPS contracted to 18.2 percent and amounted to 19.3 cents per share over the prior year. Based on the performance, the Board of Directors declared fully franked final dividend of 8.0 cents per share which will be paid on October 03, 2018, representing dividend rise of 3.6% as compared to previous year. On the other hand, the company will continue to invest in its operations, with capital expenditure (excluding, vessel and vehicle purchases as part of the Fraser Island acquisition) of $13 Mn primarily related to three new vessels and one new coach. Based on its strategic investment movement, we expect that the group is fairly positioned for growth in earnings in FY19 on the back of the full year impact of the Fraser Island acquisition; the newly awarded ferry service to Bruny Island; expected improved profitability on the Barangaroo and Rottnest Island services; and expected higher domestic and international visitation to its destinations.


Financial Highlights (Source: Company Reports)

In another release on ASX, Ms. Joanne McDonald has been appointed to the Board as an additional Company Secretary, effective 21 August 2018. Meanwhile, the share price has risen 11.75% in the past six months (as at September 05, 2018) and traded at reasonable PE of 22.18x. Based on foregoing, we maintain our “Hold” recommendation on the stock at the current price of $ 4.290.

 
Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.