CTM Faces £77 Million Revenue Reversal Amid Contract Irregularities in Europe

Corporate Travel Management (CTM) will reverse more than £77 million (A$157 million) in revenue following the discovery of contract irregularities within its European operations.

Michael Healy, CTM’s CEO for the UK and Europe, has been temporarily stood down while the company investigates issues linked to several major customer contracts handled by the CTM UK Group between 2021 and 2023.

CTM expects to restate up to £58.2 million (A$117 million) in revenue across FY23 and FY24. A further £19.4 million (A$40 million) in adjustments is anticipated in FY25, due to required refunds and contractual uncertainties that prevent revenue from being recognised. The company has warned that additional revisions may arise as KPMG continues its audit.

In response, CTM has launched a comprehensive review of record keeping and internal processes within its UK division, commissioned an external governance review to determine how the issues went undetected, and begun contacting affected customers to resolve matters linked to completed contracts.

Managing Director Jamie Pherous, an experienced business executive of Greek heritage, acknowledged the seriousness of the situation.
“We recognise the impact this situation has had on our shareholders and affected UK clients, and we unreservedly apologise,” he said. “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.”

Pherous has led CTM through a period of global expansion and increased its presence in corporate travel markets worldwide. His leadership reflects a focus on strategic growth, strong governance, and navigating complex international operations, now being put to the test amid the European contract issues.

The company warned that shareholders may face short-term impacts due to the restated revenue figures, while clients in the UK could experience delays or adjustments as CTM works to reconcile affected contracts. CTM emphasised that it is engaging directly with impacted clients to manage the situation transparently and minimise disruption.

CTM has secured an extension from ASIC, pushing the statutory deadline for its FY25 financial statements to 31 December 2025. However, the company has indicated it may still be unable to meet that deadline and is in ongoing discussions with the regulator.

While CTM expects the contract issues to have cash impacts, the timing and overall financial effect remain uncertain. The business currently holds more than A$148.3 million in cash and has no drawn debt.