How fund managers have responded to Corporate Travel Management's collapse
A European revenue recognition issue at Corporate Travel Management has grown into a systemic overcharging scandal, with the stock suspended from trading since August 2025.
6 Jul 2026 · 6 min read
In short
Corporate Travel Management has been suspended from ASX trading since August 2025 over a revenue recognition issue in its European business.
The company now expects to reverse up to £118 million of revenue relating to FY25 and prior years, according to Forager Funds.
Fund managers have written down their holdings by amounts ranging from 15% to 80%, while some short sellers, including QVG Capital and Solaris Investment Management, have profited by closing bearish positions at steep discounts.
Business travel manager Corporate Travel Management has suffered one of the more severe accounting-driven collapses among ASX small caps, moving from a routine European revenue timing question to a full ASX suspension that has now stretched from August 2025 into mid-2026. Forager Funds' November 2025 Monthly Report described the scale of the shock once details finally emerged: a total of £78 million was overcharged on European contracts over the past three years, requiring refunds, with the head of the European business stood down.
From timing issue to systemic overcharging
Wilson Asset Management's November 2025 Monthly Report detailed how the story escalated, with the company revealing plans to reverse around £77.6 million of revenue across FY2023 to FY2025, withdraw FY2025 guidance entirely, and restate prior-period accounts, confirming the ASX suspension in place since August 2025 would extend into at least 2026. Spheria Asset Management's own November 2025 commentary showed how quickly valuations were marked down: an initial 30% write-down to $11.24 a share following the August suspension was revised to just $5.00 a share, almost 70% below the last traded price, after the late-November disclosure.
What have we learned from this episode? Screening for cash generation alone would not have picked up the issue here. Looking for other red flags, including short reports and changes in auditor may have led us to be more circumspect of investments in future.
— Spheria Asset Management, Monthly Report, November 2025
The situation deteriorated further through 2026. Lennox Capital Partners' April 2026 Monthly Report described writing down almost all of the remaining equity value in the position after an operational update revealed the revenue recognition issues were materially larger than initially communicated, appearing to reflect a broader systemic issue rather than an isolated one. Forager Funds' June 2026 Annual Report confirmed the company now expects to reverse up to £118 million of revenue relating to FY25 and prior years, with a further £10 million possible in the first half of FY26, prompting an 80% write-down of Forager's remaining investment.
What managers are watching next
A small number of specialist short sellers profited from the collapse. QVG Capital's July 2026 Article detailed exiting a short position at a greater than 95% discount to the last traded price, having bought back stock at 50 cents against a last trade of $16.07, while Totus Capital and Solaris Investment Management both closed parts of their own short positions at 75% and 80% discounts respectively during the year. With the company reported to have missed a lender-imposed June 30 deadline to return to the ASX, the situation remains unresolved, and any eventual resumption of trading is likely to be the next major event for the stock.
Questions
Why was Corporate Travel Management suspended from trading?
Corporate Travel Management was suspended from ASX trading in August 2025 after flagging a potential material restatement of its financials related to revenue recognition timing in its European division, which later proved to be a much larger, systemic overcharging issue.
How much revenue is Corporate Travel Management reversing?
According to Forager Funds, Corporate Travel Management now expects to reverse up to £118 million of revenue relating to FY25 and prior years, with a further £10 million potentially affecting the first half of FY26.
Did any fund managers profit from Corporate Travel Management's collapse?
Yes. Short sellers including QVG Capital, Totus Capital and Solaris Investment Management profited by closing bearish positions in Corporate Travel Management at discounts of 75 to 97% to the stock's last traded price.
17 managers, 32 comments, with each manager's latest recorded position.
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