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- Embattled consumer stock Corporate Travel Management (CTD) is preparing to raise fresh funding
- The billion-dollar travel company, which provides travel packages for the business world, entered a trading halt early this morning
- While it’s not yet clear how much CTD intends to raise — or what it’ll use the funding for — shares should resume trade on or by Thursday, October 1
- At the end of the financial year, CTD tabled an $8.2 million statutory net loss after tax
- It’s a significant slide — down 109 per cent — on the last financial year’s figures
- By June 30, Corporate Travel Management had $92.8 million in the bank — a moderate drop on FY19’s $138.8 million in reserves
- As a result, the company’s latest funding foray could act as a boost to its balance sheet, or bolster it to withstand the economic effects of COVID-19
- Corporate Travel Management shares last traded for $16.16 on Friday, September 25
Embattled consumer stock Corporate Travel Management (CTD) is preparing to raise fresh funding.
The billion-dollar travel company, which provides travel packages for the business world, entered a trading halt early this morning.
While it’s not yet clear how much CTD intends to raise — or what it’ll use the funding for — shares should resume trade on or by Thursday, October 1.
FY20 results
In mid-August, the consumer discretionary stock released its FY20 financials.
At the end of the financial year, CTD tabled an $8.2 million statutory net loss after tax. It’s a significant slide — down 109 per cent — on the last financial year’s figures. At the end of the previous corresponding period (PCP), the ASX 200-lister reported $86.2 million in net proft.
Annual revenue was also down, coming in at $349.9 million compared to FY19’s $449.4 million. However, the company’s total operating expenses only marginally increased over FY20 — CTD shed just over $352 million on operations over the year, up slightly on the PCP’s $325.8 million.
Speaking to the results, CTD Managing Director Jamie Pherous said the annual revenue had exceeded previous expectations.
“Because we moved early and rapidly with redundancies and other cost reductions, we have been able to stem our losses very quickly, and do not expect any further significant one-off costs in the current FY21 financial year,” Jamie stated.
“Our business model also positions the business for a rapid return to profitability with only a marginal increase in domestic travel activity from current levels,” he concluded.
By June 30, Corporate Travel Management had $92.8 million in the bank — a moderate drop on FY19’s $138.8 million in reserves.
As a result, the company’s latest funding foray could act as a boost to its balance sheet, or bolster it to withstand the economic effects of COVID-19.
Corporate Travel Management shares last traded for $16.16 on Friday, September 25.
