Corporate Travel Management yet to finalise financial statements as UK accounting scandal drags on

Brisbane-based Corporate Travel Management (ASX: CTD) has pushed back the expected lodgement of its FY25 and first-half FY26 financial statements to August this year, further frustrating shareholders locked out of trading the stock for 10 months as the company's UK accounting scandal drags on.

The company has today revealed that the accounts remain incomplete due to the interdependent nature of multiple forensic workstreams still under way, with the delay extending a reporting timeline that was originally due in September 2025.

Shares in Corporate Travel Management have been suspended from trading since 26 August 2025 and the company was removed from the S&P/ASX 200 index in December.

The crisis centres on the conduct of the group's former UK chief executive, who an independent investigation found had forged customer agreements, overcharged clients and retained funds owed to them.

Corporate Travel Management now expects to reverse up to £118 million ($230 million) in UK revenue across FY25 and prior financial years, a significant escalation from the £77.6 million ($150 million) estimate disclosed earlier this year.

An additional £10 million in first-half FY26 UK revenue may also need to be reversed.

The damage has also spread beyond Europe with a newly disclosed restatement of FY24 results to reduce revenue in the group's Australia and New Zealand region by an estimated $10 million to $15 million, with about 80 per cent of that adjustment relating to the FY19 to FY23 period.

A separate review of air-booking margins in the UK operation remains ongoing with no final figure yet determined.

"We recognise the delay is deeply frustrating for shareholders and acknowledge the uncertainty it has created," says Ana Pedersen, acting group CEO at Corporate Travel Management.

"We have made meaningful progress towards finalising CTM’s financial statements, UK customer remediation and financing workstreams.

"As we move through the final stages, the remaining tasks are interdependent, and we are working through them carefully and with rigour, to ensure a thorough and appropriate outcome.

"Importantly, the underlying business remains resilient, with strong customer retention and consistent quality service across our global operations”.

Corporate Travel Management is expecting goodwill impairments across three of its four operating segments.

The European segment faces a full write-off of £92 million ($176 million), the ANZ segment an impairment of $77 million against a carrying value of $215 million, and the North American segment an impairment of US$49 million ($71 million) against a carrying value of US$302 million ($438 million).

As at 31 March 2026, the company held $115.7 million in cash, of which $12 million was restricted, along with $75 million in undrawn debt facilities.

Unaudited results for the first half of FY26 showed revenue of $348.5 million and underlying EBITDA of $77.7 million, suggesting the company's operations outside the UK continue to generate cash.

Corporate Travel Management says it expects to lodge both the FY25 annual report and the first-half FY26 accounts in August this year and is targeting a resumption of share trading shortly after.

The company's shares last traded at $16.05 before the suspension on 26 August 2025, which valued the group at $2.35 billion.