CTM suspends trading so it can respond to research report.
Corporate Travel Management has just placed its shares into an immediate trading halt on the Australian Stock Exchange, with the company saying it wants to “review and respond to a research report which it has recently received”.
The move follows the release of a 176-page presentation by hedge fund VGI Partners, which has identified what it says are 20 “red flags” painting a “troubling picture of the company”.
VGI, which is betting heavily on a decline in the CTD share price, claims the company’s profitability and earnings margins are “supernormal” and has raised issues with the firm’s accounting, goodwill and interest earnings, as well as saying visits to some of the European and US office locations listed on the Corporate Travel Management website found them unoccupied during business hours.
Corporate Travel Management said it “takes the claims seriously and we look forward to providing a detailed response as quickly as possible”.
More details in today’s issue of Travel Daily.