16 August 2016

Global growth delivers record full-year profit for CTM

FY16 Results highlights:

Corporate Travel Management (CTM, ASX Code: CTD) today reported its strongest-ever full year results, driven by new client wins in all markets, and provided guidance of 23-30% underlying EBITDA growth for the next 12 months.

CTM’s global operations continued to grow market share, with $3.58 billion in total transaction value (+35 per cent) and new regional account wins every four weeks delivering record profits in every region.

CTM’s underlying EBITDA was $69.0m, up 41 per cent on the prior year and is slightly above previous upgraded guidance of $68.0m.

CTM Managing Director and founder Jamie Pherous said the past 12 months continued to show the value of a globally-focused travel management company that could weather challenges in individual markets, growing by leveraging local expertise, and supported by business-wide technology innovations.

“Our business continues to strengthen its position, with record operating cash flow conversion of 120 per cent reflecting the success of the model despite significant expansion,” Mr Pherous said.

“This year’s financial results are a measure of our success in delivering for our clients; our global network provides benefits in technology, service, and scale, and we are winning and growing client accounts because of the recognition of our international capabilities.”

New client wins and an increase in existing client accounts accounted for 80 per cent of profit growth.

“Our scale means we are securing global and multi-region accounts that we would not have been considered for without the network we now have in place.

“We have prioritised the integration of our new acquisitions, including US-based Montrose Travel and Travizon Travel, and the growth in our earnings per share reflects our focus on delivering value during this expansion.

“Already we are seeing positive synergies from these new regions, and we have retained key staff and clients who are excited about working for, and with, a global, industry-leading business.”

“Our service innovations and client offering will continue to evolve, but our strategy will remain unchanged. We are focused on core initiatives including organic growth and acquisitions, client-facing innovation, productivity and internal innovation, leveraging our scale and geography, and focusing on our people,” Mr Pherous said.

The CTM Board has declared a final, fully-franked dividend of 15 cents per share, to be paid on 6 October bringing the total annual dividend to 24 cents per share.