Corporate Travel Management Limited Announces Record 1H24 Results and Five-Year Strategy to Double Profits

Corporate Travel Management Limited (CTM) reported a record 1H24 result with a significant increase in profits and revenue compared to 1H23.

Unmistakable silhouette of the Queen! Saudia Cargo B744F 'TC-ACM' arriving in DAC earlier this glorious afternoon.

Summary

Corporate Travel Management Limited Announces Record 1H24 Results and Five-Year Strategy to Double Profits

  1. Corporate Travel Management Limited (CTM) reported a record 1H24 result with a significant increase in profits and revenue compared to 1H23.


  2. CTM announced a five-year strategy aiming to double FY24 profits by FY29, with a focus on organic growth and potential acquisitions.


  3. The company's strong financial performance includes a 25% increase in revenue, a 96% increase in underlying EBITDA, and a 162% increase in underlying NPAT.


  4. CTM has a robust balance sheet with no drawn debt and $131.3 million in cash, alongside an interim dividend of 17 cents per share.

  5. Key drivers for growth include continued client wins, high client retention rate (97%), and productivity gains from automation.

  6. Macro issues in 2Q24, such as negative travel sentiment and high ticket prices, impacted performance but were offset by strong January 2024 rebounds.

  7. Regional performance varied, with North America and Europe showing strong growth, while ANZ faced challenges but is expected to improve in 2H24.

  8. Asia's performance exceeded expectations despite slower recovery in China, indicating potential for significant post-COVID recovery upside.

  9. CTM's growth strategy includes maintaining dividends, investing in projects with a minimum 25% Return on Capital, and pursuing acquisitions.

  10. The company revised FY24 guidance due to macro issues and underperformance of the UK Bridging Contract, but remains optimistic about future performance.

This announcement is a summary of the company approved ASX announcement on 21/2/2024.