CTM global growth plan comes together for record results

A FOCUS on integrating technology, solid strategic international acquisitions and organic growth across the company’s markets has been credited for Corporate Travel Management’s (CTM) record full-year profit and dividend announced on August 26.

CTM managing director Jamie Pherous said the results, which came after a significant increase in top-line growth, demonstrated the company’s business model and strategic investment decisions were working. 

Brisbane-headquartered CTM reported revenues and other income increased 79 percent to $197.9 million on total transaction value (TTV) of $2,656m (up 92%), driven by the integration of international acquisitions and organic growth in all markets.

CTM has upgraded full-year guidance to an underlying NPAT in the range of $61.3m-$63.8m – and increase of 25-30 percent.

 “These results support the strategy we have taken to integration globally, adding value to our business by ensuring we focus on integrating technology and business culture,” Mr Pherous said.

“They reflect the efforts of our award-winning team to win and retain clients, including global businesses who have recognised our international capabilities.

“We have continued to expand through increasing market share, with organic growth contributing to more than half of our top-line growth.”

In Australia and New Zealand, underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 19.5 percent to $25.7m on a 13.7 percent organic increase in TTV, underpinned by internal productivity gains.

In Asia, underlying EBITDA grew 200 percent, Mr Pherous said, outperforming all market competitors with 39.4 percent organic growth.

The North American region delivered a 79.3 percent increase in EBITDA to $9.5m, supported by 17.3% organic growth.

European acquisition Chambers Travel Group’s contribution to the group is already delivering results, with a 13.2 percent increase in revenue to $17.2m.

The European expansion to CTM’s global network has delivered two globally significant clients in the past six months.

Mr Pherous said the global network was opening up new client opportunities while delivering the supplier and efficiency benefits of scale.

“We now have more than 100 clients with a presence in multiple countries who, along with other potential clients, are clearly telling us our ability to provide local expertise in all markets is incredibly important to them,” Mr Pherous said.

“We are seeing the benefits of integrating outstanding businesses and people into the CTM group, providing a robust platform for servicing our clients and continued growth.

“The key to our success is surpassing our clients’ expectations, so our focus will be on continual client-facing innovation and leveraging our scale and geography to deliver our clients a constant return on their investment.

“Internally we will continue to make it easier and more efficient for our award-winning team to work, which ensures they maximise the time invested in servicing clients,” he said.

“The structural changes we are making, to align all of our regions, are to ensure our staff are empowered, have client ownership and are able to make quick decisions.

“We will continue to grow organically and make acquisitions where they are an appropriate strategic and cultural fit for CTM, and we have demonstrated we are able to successfully integrate such acquisitions while growing market share organically.”

The CTM board declared a final fully franked dividend of 10 cents per share to be paid on October 9, 2015.

CTM is an industry partner with Queensland Leaders, NSW Leaders and Victorian Leaders – the organisations helping to foster the next generation of leading Australian companies. CTM famously used its membership of Queensland Leaders to help launch its international growth plans through an initial public offering on the Australian Securities Exchange.

Mr Pherous is now a member of the Queensland Leaders board and continues to help other business leaders to plan for growth through the various states’ Leaders organisations. New Zealand Leaders is set to launch this year.

www.travelctm.com

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