Corporate Travel Management has delayed the completion of its revised accounts as its overcharging crisis continues to drag on.
The Australia-based TMC said in a statement to the Australian Securities Exchange (ASX) on Thursday (25 June) that it now expected its FY 2025 and half-year 2026 accounts to be finalised in August, instead of its previous target of 30 June. The company added that work on finalising these accounts was “substantially advanced but not complete”.
CTM had hoped its shares would start trading again on the ASX by the end of this month. But they remain suspended and the company faces a deadline of 31 August to file its financial reports or risk having its shares delisted.
In its update, CTM revealed that it had now discovered that its accounting problems also impacted some clients in Australia and New Zealand going back several years to 2019. The TMC said this would lead to a reduction in its revenue of between AU$10 million and AU$15 million (US$6.9 million-US$10.3 million) for the 2024 financial year.
The company said there could also be more accounting problems relating to its UK business, with the review of its accounts uncovering potential issues relating to “margins on air bookings”. CTM has already revealed that it overcharged UK customers, including the UK government, by up to £128 million.
CTM said it was working towards completing three “key, interdependent activities” to resolve the crisis. This involves finalising the reporting, audit and review of its accounts, securing the finance to support the repayment of affected clients, as well as reaching agreements to refund these customers.
The TMC added that it was “in final stages of documenting commercial agreements with key impacted customers in the UK in relation to staged and orderly refund arrangements”.
"We recognise the delay is deeply frustrating for shareholders and acknowledge the uncertainty it has created,” said Ana Pedersen, CTM’s acting group CEO, in its statement.
“We have made meaningful progress towards finalising CTM’s financial statements, UK customer remediation and financing workstreams.”