Corporate Travel Management Ltd (ASX: CTD) has warned investors it will not meet its previously flagged September deadline to release full-year results, with a mandatory ASX suspension set to continue as auditors scrutinise revenue recognition in its European operations.
The travel services group said today that “despite progress being made”, the scale of work required by KPMG and its auditors means the FY25 financial report cannot be completed by September 25 as targeted. A further update is expected in November.
Audit issue isolated to Europe
The issue stems from adjustments relating to the timing of revenue and cost recognition in Europe across FY23–25. CTM stressed the matter remains limited to the European region, with audit activity for the rest of the group already completed.
While the final impact is yet to be determined, the company noted any adjustments would likely boost earnings in prior years while reducing FY25 earnings. Importantly, no changes are expected to affect cash flow or day-to-day operations in FY26.
Suspension remains in place
CTM’s shares have been in mandatory suspension since September 1 due to the delayed accounts. That suspension will now remain until the FY25 results are released.
The company acknowledged the frustration for shareholders, saying it “regrets the further delay” but is working to finalise year-end processes as quickly as possible.
Strong cash position and solid start to FY26
Despite the accounting uncertainty, CTM emphasised its underlying performance remains strong. The group ended FY25 with $124 million in cash and no debt, having generated robust operating cash flows.
Trading in the first two months of FY26 has been “positive”, the company added, with operations performing in line with expectations across all regions and further customer wins supporting incremental cash generation.