This is a developing news story.
Corporate Travel Management (CTM) has today revealed major accounting errors to the tune of some £77.6 million with repayments owed to a "small number" of UK-based customers.
As part of an ongoing accounting review by KPMG, the Australian-headquartered travel management company revealed it will “reverse revenue” of up to £58.2 million from its 2023 and 2024 financial year accounts after having overcharged clients. A further £19.4 million is also expected to be "reversed" from its current year (FY25) earnings due to customer refunds and "where
contractual uncertainty may not allow for revenue to be recognised".
CTM managing director Jamie Pherous said the issue was "isolated to a small number of UK customers only", according to a report by the Australian Broadcasting Corporation. As a result, CTM’s UK and Europe chief executive Michael Healy has been “temporarily stood down” with immediate effect.
CTM global chief operating officer Eleanor Noonan will act as interim CEO for CTM UK and Europe during Healy's suspension.
The company, in a statement, said it has met with impacted customers and has commenced “a comprehensive review of financial processes and record keeping in the CTM UK group”. It will also undertake an external governance review to identify why the matters were not previously identified and resolved earlier.
CTM’s UK clients include the UK government, however the company reportedly refused to confirm whether it was among those affected. During an analyst call on Friday morning, the TMC also reportedly failed to clarify whether the discrepancies were due to fees charged or commissions retained. It is suspected, however, that refunds from cancelled tickets had not been passed on to clients, according to the ABC report.
“We recognise the impact this situation has had on our shareholders and affected UK clients, and we unreservedly apologise," Pherous said in a statement. "Our priority is to uphold the highest standards across our operations, work closely with our auditors to finalise the FY25 financial statements, and implement all necessary measures to strengthen the company."
CTM chairman Ewen Crouch added: “We recognise how serious this situation is and the concerns it has caused. While further investigation is required, including a comprehensive review of our UK operations and our overall governance framework, we remain fully committed to taking the necessary action to restore confidence.
"A process is now underway to consider all necessary remediation for the clients impacted in the UK... While these are challenging circumstances, our core operations remain strong and the quality of service to clients has not wavered," he said in a statement.
The news comes after the TMC last month affirmed its “strong financial position” amid an ongoing review of its FY23-FY25 accounts after accounting errors were discovered in August.
KMPG, which was appointed in September to conduct a review of CTM’s European financial statements, presented an interim report to CTM on 23 November after assessing some 47,000 documents and analysing more than 1.5 million sales and purchases transaction lines representing aggregate transaction values of more £400 million, according to CTM’s statement.
As well as the £77.6 million in overcharging, KPMG's report also identified £45.4 million in revenue linked to previous large customer contracts carried out by CTM UK between 2021 and 2023 as an "area of concern".
CTM said it is currently reviewing these contracts, which have since concluded, to determine the amount of any refunds
that are due to these customers. This process is expected to continue into 2026.
The TMC added that it “will work with KPMG to complete their work and determine the quantum of any further restatements and adjustments” and will reissue its FY23 and FY24 financial statements, with the revised amounts to be recorded as financial liabilities.
CTM in August voluntarily suspended its shares from trading on the Australian Stock Exchange (ASX) and delayed the publication of its FY25 accounts after discovering accounting discrepancies across its European operations.
The TMC on Friday confirmed the ASX suspension “will remain in place” as it continues to work “in a swift and collaborative manner to finalise [FY25] year-end processes with its auditors”. It also retracted its FY25 guidance (released in May 2025) and did not specify a release date for its full FY25 statement.