Corporate Travel Management (CTM) was awarded the Bridging Accommodation & Travel Services contract by the UK Home Office, valued at approximately £1.6bn (AUD$3b).
The contract commenced 1 March 2023 for 2 years with the ability for a one-year extension in line with on going demand requirements.
CTM said this work involves highly complex services and logistic support that will be delivered by an already established dedicated team within CTM that has both the experience and specialised knowledge to support this work.
This region is already CTM’s strongest contributor to CTM’s financial results and as a result, this contract will have a significant impact on the further growth of our European region in FY24 and beyond.
CTM’s chief, Jamie Pherous, told the Australian Financial Review that this move reflected the strong recovery in corporate travel.
“Over half our business now is government or essential services… it just lends itself to a higher quality of recurring earnings,” he said.
“Travel just keeps coming. In terms of what we are seeing in other parts of the world. Asia and America keep hitting new profit benchmarks month on month.”
Shares in the company had climbed 10.1 per cent to $20.80 by 10:30am AEST this morning.
Pherous said CTM won the work as it fits the company’s “wheelhouse” after it developed new logistics and software solutions during the pandemic.
“We had some very large projects that required customers to travel in very heavy volumes when borders were closed. Through that we developed a turn key solution and an ability to handle this complex work,” Pherous said.
Featured Image: Jamie Pherous (CTM)
