CORPORATE TRAVEL FLIES A RECORD PROFIT

Written on the 26 February 2016 by Brisbane Business News

CORPORATE TRAVEL FLIES A RECORD PROFIT

BRISBANE listed travel business Corporate Travel Management (ASX: CTD) has posted a record half year profit, buoyed by domestic and international growth.

The company lifted its net profit after tax 36 per cent to $14.9 million.

Organic growth underpinned the majority of the company's underlying EBITDA, which grew 38 per cent over the period to $28 million.

Cash generation is also at record levels across all of Corporate Travel Management's operations, which are managed by 2000 staff.

Corporate Travel Management managing director and founder Jamie Pherous says the result is in spite of challenging conditions onshore and abroad.

"We have been clear our focus is on building a sensible global footprint that would become our growth platform to build market share through; winning and retaining clients; innovating customer-facing technology; focusing on internal automation; leveraging scale; and, ensuring our staff are empowered to best service our clients," says Pherous.

"Today's results emphasise this strategy is delivering on all fronts."

Pherous' company has won a record value of new clients in the past six months in Australia despite slowdowns in the resources sector directly affecting volume of client work.

The business has diversified its footprint significantly over the last three full years and is now exposed almost equally to Asia and the Australia and New Zealand market.

Asia delivered 67 per cent growth in EBITDA on 33 per cent revenue growth, and Europe is growing strongly, which in Pherous' view 'demonstrates the upsides we believe we can achieve in North America and Europe'.

Corporate Travel Management has carried out a number of acquisitions in North America in recent times, and its total transaction value increased 20 per cent over the period.

The board will reward shareholders with a fully franked interim dividend of 9c per share on April 8.


Author: Brisbane Business News Connect via: Twitter

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