Corporate Travel Management (ASX:CTM) has sent shockwaves through the financial sector after announcing that anticipated revenue reversals from its UK operations could swell to a staggering £118 million.
The updated figure, which spans from FY19 through to the current period, follows an exhaustive forensic investigation into historical billing practices that have left the company’s reputation and balance sheet under intense scrutiny.
The crisis stems from a KPMG-led review which uncovered systemic irregularities within the UK division.
Findings revealed that clients were routinely charged in excess of their contractual entitlements and that client funds were improperly retained.
What began as a localised concern during FY25 reporting preparations has now morphed into a multi-year accounting scandal, with the scope of affected revenue extended back several years as more contracts are flagged for remediation.
In a further blow to investor confidence, CTM warned of an additional £10 million revenue reversal potentially hitting the first half of FY26, pending the outcome of delicate negotiations with affected customers.
While the company is actively pursuing commercial agreements to structure these hefty refunds in a way that manages liquidity, the financial strain remains evident.
In response to the fallout, CTM has implemented rigorous new financial controls across its British business.