Corporate Travel Management (CTM) has suspended its earnings guidance for the 2020 financial year due to increased uncertainty surrounding the duration and severity of COVID-19.
CTM provided a revised FY20 guidance on 19 February 2020, which it said was based on several assumptions around the severity and duration of COVID-19, and CTM’s experience with past events and their impact on the corporate travel market.
However, the company acknowledged that the impact currently being experienced is more severe than its previous assumptions.
“The significant uncertainty makes it difficult to reliably predict future activity. As a result, CTM has suspended FY20 guidance,” the company said in a statement.
CTM has also actioned several plans to manage costs against reduced corporate travel activity. These include staff leave, shorter working weeks on proportionate pay and leave without pay, which apply across all staff.
Additional measures by the company include a freeze on all non-essential recruitment, a reduction of all discretionary expenditure and delaying non-client facing project work.
CTM managing director Jamie Pherous and non-executive directors will take a 20 per cent reduction in their fees and fixed remuneration respectively for the remainder of this financial year.
The company noted it has the capacity to implement further measures “should the situation require”.
Featured image: iStock/takasuu
