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Corporate Travel Management reported a 45% growth in EBITDA and reiterated its full year FY12 EBITDA guidance of 30% to 40% growth on last year. CTM achieved a $7.30m EBITDA and $4.66m statutory Net Profit After Tax (NPAT) for the six months ending 31 December 2011, representing increases of 45% and 41% respectively when compared to the previous corresponding period in FY11.
The company’s profit result was achieved on total transaction value (TTV) of $315.9m, representing a 42% increase on the previous corresponding period.
The CTM Board has declared an interim dividend of 3 cents per share, payable on 18 April 2012. The Company expects to pay out approximately 50% of full year NPAT, in line with the current dividend policy.
CTM Managing Director Jamie Pherous said this result was encouraging, given the generally tough economic conditions.
“Our solid first half performance was due to success in the key drivers of the business, being:
– Strong organic growth through new client wins and retention of existing clients; and
– Leveraging scale and efficiencies in product, systems and people.”
“Additionally, the etm acquisition, completed on 3 October 2011, strengthened our operations in Melbourne and brings exciting cross selling opportunities. The many synergies that exist between the companies have put the integration project ahead of schedule and we are confident the business will fulfil our expectations in the long-term.”
Guidance
“Whilst we have had a strong first half up 45% in EBITDA, we have experienced a slight softening in client activity since October 2011,” said Mr Pherous. “Given the uncertainty in the economy, the Board considers it prudent to reaffirm previous guidance of 30% to 40% growth in EBITDA for the full year.”
Mr Pherous said the Company’s key priorities over the next six months would include:
– Organic growth (new client wins and retention) to set up FY13;
– Innovation – execution and delivering of client-facing products and tools in a staged process throughout the 2012 calendar year;
– Implementation of automation and productivity initiatives to create more time for our people to demonstrate highly personalised expertise; and
– Continued consideration of future acquisition opportunities.
“Much of this investment in innovation will yield real results in FY13,” said Mr Pherous. “With the momentum in organic growth and the scalability the innovation investment will bring, we have the opportunity to set-up a strong FY13, irrespective of broader economic conditions.”
Mr Pherous noted that “CTM has achieved compound annual growth in TTV of 44% and EBITDA of 48% over the past five financial years through a combination of organic growth and acquisitions.“
Tatiana is the news co-ordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes to monitor the hundrends of news sources of TravelDailyNews Media Network and skim the most important according to our strategy. She holds a Bachelor degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
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