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CORPORATE Travel Management (ASX:CTD) has reported a $4.66 million net profit after tax (NPAT) for the six months to December 31, 2011. It represents a 41 per cent jump on the previous corresponding period.
CTM managing director Jamie Pherous (pictured) is encouraged by the result particularly because of challenging economic conditions and a high Aussie dollar impacting inbound tourism.
“Our solid first-half performance was due to (our) success in the key drivers of the business, being strong organic growth through new client wins and retention of existing clients – and leveraging scale and efficiencies in product, systems and people,” he says.
In hindsight Pherous believes the $92,000 acquisition of Melbourne-based ETM Group not only strengthened operations but also created ‘exciting’ cross-selling opportunities.
“The many synergies that exist between the companies have put the integration project ahead of schedule – and we are confident the business will fulfil our expectations in the long-term,” he says.
Earnings before interest, tax, depreciation (EBITDA) and amortisation were up 45 per cent to $7.3 million in the first half of fiscal 2012. However, Pherous concedes client activity is softer than levels seen in October 2011.
“Given the uncertainty in the economy, the (CTM) Board considers it prudent to reaffirm previous guidance of 30 to 40 per cent growth in EBITDA for the full year,” he says.
The Board has declared an interim, fully franked dividend of 3 cents per share to be paid on April 18. The company expects to remunerate about 50 per cent of its full-year NPAT.
CTM shares rose 3.2 per cent to $2.24 per unit.
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