Corporate Travel Management says raider has misrepresented company performance.
Corporate Travel Management has just issued its response to the report by VGI Partners which claimed a range of issues around the company’s accounting practices, performance and global office network, leading to a trading halt earlier this week.
The CTM Board has acknowledged two matters raised by VGI: namely the need for the Company to keep its website updated with its office locations, and in relation to not using the term “patented” in relation to its proprietary technology.
However CTM has rejected claims in relation to the recognition of revenue, cashflows and account balances, and says allegations that the company’s global office footprint has been overstated are incorrect. “CTM has a clear strategy to establish a global footprint and generate scale, but is not intending to do this by building a costly and less productive small office ‘bricks and mortar’ empire,” the company said.
Chairman Tony Bellas said “VGI has been very clear about its intention to benefit from a decline in the company’s share price…the timing of this report is unfortunate because it does not take into account the company’s excellent performance record and continued successful execution of strategy.
“The company is in great financial shape,” he concluded.
CTM has approached VGI Partners seeking that the report be corrected or withdrawn.
More details in today’s issue of Travel Daily.