CORPORATE Travel Management (ASX: CTD) has found its wings to boost full-year profit by 40 per cent despite a softening Australian market and thanks largely to global expansion.
The company has landed a net profit of $15.8 million in FY14, built on a 42 per cent increase in revenue to $110.5 million.
The underlying EBITDA result of $28.9 million represents growth of 47 per cent, while the company is predicting a further 32 to 42 per cent growth in EBITDA to between $38 million and $41 million in the current financial year.
Company founder and managing director Jamie Pherous (pictured) also attributes the improved results to continued investment in technology and high client retention rates.
“Our team successfully executed on all the key business drivers we could control,” says Pherous.
“Most pleasing is that all regions experienced record profits, and all acquisitions also experienced organic profit growth.”
Among these recent acquisitions is the 75.1 per cent stake in Westminster Travel, representing diversification through Asia.
“We’ve demonstrated our ability to integrate newly acquired businesses and grow market share, and as a result the company has successfully won 32 clients through cross-selling across more than one region in the group,” says Pherous.
“We’ve been involved in a number of global tenders that would not have been possible without the growing global coverage we’ve experienced in FY14.
“In Australia, in particular, profit growth occurred despite the broad softening in the Australian economy resulting in a combined 12 per cent decline in client activity and lower average ticket prices.”
Pherous says the focus will remain on global growth for the year ahead.
“We intend to build upon market share in North America, focus on continued scalable growth in ANZ and Asia, and look for further acquisition opportunities in North America and Europe,” he says.
“We have developed a successful and unique growth strategy which we intend to build upon in the coming year.”
A final dividend of 7.5c a share, fully franked, will be paid on October 31, bringing the full-year payout to 12c.
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