Luxury Escapes boss Adam Schwab continues to question the local arm of the troubled UK-headquartered Corporate Travel Management (ASX:CTD) this time over its client retention claims.
In its 1HFY26 (unaudited) trading update and UK remediation update, CTM said “client retention remains strong at or above benchmark levels of 97%” and that there was “limited evidence of structural client loss has emerged to date, as a consequence of the current environment, with sentiment closely monitored and early-renewal initiatives underway supporting revenue certainty and client retention”.
Schwab did not hold back in his response on LinkedIn and questioned the “completely inconceivable” statement which was posted on the ASX website this morning.
“This is after being delisted for more than six months and having massive uncertainty regarding their survival. It is also miraculously the identical churn number the(y) have claimed over the past six years,” Schwab added. “It is completely inconceivable that this number is correct.
Schwab also pointed to results released this week by rival Flight Centre Travel Group, which stated it had acquired $600 million in new corporate business in the last half – a significant jump compared with $200 million for the entire FY2024.
“Flight Centre (a highly credible competitor to CTM) stated in its own results yesterday that it had acquired $600m in new corporate business in the last half, a huge increase on FY2024 ($200m for the entire year). It appears most of this new business has come from clients leaving CTM and switching to Flight Centre.”
The ASX statement comes after CTM has been suspended from trading for more than six months amid delays to its FY25 audited financial statements and an ongoing forensic accounting review of its UK business.
“Flight Centre (a highly credible competitor to CTM) stated in its own results yesterday that it had acquired $600m in new corporate business in the last half, a huge increase on FY2024 ($200m for the entire year),” Schwab said.
He then questioned the role of the regulator and the governance oversight behind the announcement.
“Will the ASX allow this statement to remain live? Is this company a complete law unto itself?” Schwab said.
“How is it possible that a former leading corporate lawyer is signing off on these statements?”
CTM H126 update
In its update, CTM reported revenue and other income of AU$348.5 million for 1H26, underlying EBITDA of $77.7 million and an underlying EBITDA margin of 22.3%. Cash at 31 December was $121.2 million, down slightly from $124.0 million at June 2025, reflecting working capital impacts from revised IATA arrangements and one-off costs related to the review and remediation process.
The company said business operations have continued with “minimal disruption” during the review of FY23–FY25 financial statements and the FY25 audit. Work on the UK forensic accounting review is approaching completion, with finalisation anticipated in March 2026.
CTM confirmed it has paid AU$15 million to key impacted UK customers as part of its remediation program, with further payments subject to finalisation of the plan. It is targeting the release of audited FY25 accounts, reviewed 1HFY26 results and reinstatement of its shares in Q2 calendar year 2026, subject to necessary approvals.
The company also stated that a broader review across other regions did not identify any material issues similar to those found in the UK.
However, Schwab’s comments highlight the growing scrutiny around CTM’s disclosure, particularly its assertion that there has been limited structural client loss during a prolonged trading suspension and period of uncertainty.
The Australian Securities Exchange has not publicly commented on CTM’s latest statement at the time of publication.
