The record result coincides with the release of a new strategy to double profits over the next five years.
Corporate Travel Management has nearly doubled its underlying pre-tax earnings in a record first-half of the 2023/24 financial year, closing with an EBITDA of $100.7 million – up 96% from $51.3 million in the corresponding period last year.
The company is aiming higher still, according to its first-half profit guidance just released, with a new five-year strategy to organically double profits by FY29 irrespective of any acquisitions accrued over the same time period.
Total revenue for the six-month period closed at $363.7 million, up 25% year-on-year, with a debt-free balance sheet leading to an overall cash balance in the bank of $131.3 million.
Ongoing new client wins were a key driver for the strong result, the company said, with a further $630 million worth of new business taken on during the half, coupled with strong conversion into higher profit growth.
“The underlying business is performing well, and we are executing on the things we can control as demonstrated by continued market share gains and our ability to successfully convert revenue into profit growth,” said Corporate Travel Management Managing Director, Jamie Pherous.
Broken down by region, the Australia and New Zealand market performed more modestly, with revenue and other income up 1% or around $700,000, with the result citing additional costs to support new and legacy systems to handle its Whole of Australian Government (WoAG) account, which began this month.
Corporate Travel Management is also continuing to grow its head count, having recently announced James Spence as its new Global Chief Financial Officer, who will start with the company in May following a six-month recruitment process.
More details in today’s issue of Travel Daily.