Fund Manager Summary on Corporate Travel Management Ltd (ASX:CTD)
In December 2025, Elston Asset Management commented that Corporate Travel Management Ltd (ASX:CTD) was written down by 50% after management disclosed that the required financial restatements were materially more serious than earlier indicated. Across fund manager commentary there is a clear shift from cautious optimism about structural tailwinds in corporate travel to material concern driven by late-2025 disclosures: earlier 2025 remarks noted possible short-term demand weakness tied to geopolitical and consumer confidence effects but affirmed long-term growth drivers, while the August suspension and November update revealing ~GBP77.6–78m of overstated European revenue, withdrawn FY25 guidance, restated prior-period accounts, an extended trading halt into 2026, the standing down of the European head and the need to issue client refunds have prompted multiple managers to materially mark down or write off holdings and to remove or avoid the stock (one manager reduced valuation to $5.00, another wrote down 50%, and one reports CTD as the 11th most shorted ASX stock at -9.51%); some managers note the business claims remaining cash of ~A$150m and no debt, but heightened governance, balance-sheet and client-retention risks, potential refund liabilities and prolonged uncertainty around audited accounts argue for continued caution, with actionable considerations including monitoring the outcome of UK restatements and client remediation, reassessing revenue recognition and controls in the European division (c.17% of group revenue), and treating any opportunity as contingent on clear, audited financials and evidence of restored controls and client confidence.
Commentary From The Managers
There are 12 insights from 10 fund managers regarding their investment in Corporate Travel Management Ltd (ASX:CTD) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Elston Asset Management
31 Dec 2025
Unknown
Summary
- Elston Asset Management believes CTD's restatement issues are material and reduced their position because management disclosed the problems are far more serious than previously suggested, prompting a 50% write-down of the holding.
- 50% write-down: recognised a half-year valuation impairment to reflect the new, adverse information.
- Trading halt: CTD remains in a trading halt, creating uncertainty over timing and clarity of further disclosures.
- Main detractor this quarter: CTD was one of the principal contributors to negative performance for the quarter.
- New information disappointing: the additional details on the restatement were significantly worse than earlier communications, raising concerns about governance and controls.
- Ongoing approach: monitoring developments closely, engaging with management where possible, and prepared to reassess the position as clearer information emerges.
Paradice Investment Management
31 Dec 2025
Unknown
Summary
- Paradice Investment Management believes CTD presented unacceptable governance and accounting risk, and continues to hold zero exposure because the stock failed Stage 1 of our Investment Process and was suspended after the auditor refused to release the accounts.
- Zero exposure / Underweight: The Fund has never owned CTD and maintained a zero weight in the quarter, reflecting an underweight position.
- Stage 1 screening: CTD failed our initial screening due to multiple red flags in the accounts, preventing any purchase.
- Suspension trigger: CTD was suspended in late August when the auditor refused to sign off the accounts; the stock has not traded since.
- Benchmark treatment: The stock was removed from the benchmark at zero weight following the suspension.
- Relative performance benefit: The Fund’s zero exposure delivered a full index-weight benefit to performance in December attribution.
- Risk-first philosophy: Our disciplined process prioritises governance and accounting integrity; avoiding CTD exemplifies that approach.
Spheria Asset Management
30 Nov 2025
Unknown
Summary
- Spheria Asset Management has materially written down the value of their investment in Corporate Travel Management Ltd (CTD).
- Initially applied a 30% write-down on August 22, 2025, valuing shares at $11.24.
- After the announcement on November 28, 2025, the valuation was revised down to $5.00 per share, nearly 70% below the last traded price.
- At the revised price, CTD constitutes less than 0.5% of the Fund's total assets.
- Spheria has learned that screening for cash generation alone may not be sufficient to identify potential issues.
- Future investment strategies will incorporate negative screening for red flags, including short reports and changes in auditors.
Forager Funds
30 Nov 2025
Unknown
Summary
- Forager Funds updates its investment thesis on Corporate Travel Management Ltd (CTD) following the release of financial details after a suspension since August.
- The company revealed that £78 million ($157 million) was overcharged on European contracts over the past three years, necessitating refunds.
- The head of the European business has been stood down as part of the fallout from these issues.
- A resumption of trading is expected to be months away as the company addresses these challenges.
- CTD must weather the initial balance sheet hit from the required payouts and restore client confidence globally.
- Following a 15% markdown in August, a further cut of 50% from last traded levels is now considered warranted.
- Post-writedown, CTD remains 1.6% of the portfolio for Forager Funds.
Firetrail Investments
30 Nov 2025
Unknown
Summary
- Firetrail Investments continues to hold its position in Corporate Travel Management Ltd.
- Corporate Travel recently reported historic financial results that were worse than market expectations.
- The financial results were contrary to the company’s prior disclosures.
- The stock has been suspended from trading since 26 August 2025.
- Following the announcement, the independent pricing committee chaired by Pinnacle decided to reduce the stock’s valuation for fund unit pricing.
- Management has indicated that all issues are historical in nature.
- The business remains well capitalised with approximately A$150m of cash and no debt.
Wilson Asset Management
30 Nov 2025
Unknown
Summary
- Corporate Travel Management specializes in procurement and delivery of travel and accommodation agency services.
- Recent updates revealed an overstatement of revenue, with plans to reverse approximately GBP77.6 million across FY2023 to FY2025.
- The company has withdrawn FY2025 guidance and will restate prior-period accounts.
- Audited FY2025 financial statements will not be lodged this year, extending the ASX suspension into at least 2026.
- Concerns over governance, balance sheet risk, and potential client refunds have intensified.
- Corporate Travel Management has been listed on the ASX since 2010, and Wilson Asset Management has been a shareholder at various stages.
- The announcement on 28 November 2025 was a major shock to the market, leading to disappointment.
- Wilson Asset Management has written down its investment in the company by 50% to reflect the uncertainty over the business outlook.
Forager Funds
30 Sept 2025
Unknown
Summary
- Forager Funds first invested in Corporate Travel Management (CTD) in August, amid global corporate travel concerns.
- The company’s European division had previously disappointed investors due to unfulfilled contract revenue.
- Despite the challenges, the business was recovering, and the investment thesis was progressing well.
- Trading was halted in August due to a potential material restatement of financials, primarily linked to the European division.
- The European division accounts for 17% of group revenue, with the company asserting the changes are non-cash and only a timing issue.
- Initial expectations for the trading suspension were short-term, but it has now been extended to November.
- The carrying value of this investment has been reduced by 15% until trading resumes.
Katana Asset Management
26 June 2025
$13.77
Summary
- Katana Asset Management continues to add to their CTD holding amidst recent market fluctuations due to the Israel-Iran conflict.
- While the conflict is tragic, Katana believes it will not significantly impact long-term growth drivers for the company.
- Such geopolitical events often create opportunities to purchase high-calibre businesses at a discount.
- CTD is now the 11th most shorted stock on the ASX at -9.51%, which is atypical for a company of its caliber.
- This high short interest could lead to a potential short-squeeze if earnings continue to grow as projected.
Centennial Asset Management
6 May 2025
$11.41
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Firetrail Investments
31 Mar 2025
$13.91
Summary
- Corporate Travel Management underperformed during the month due to market concerns.
- Firetrail Investments notes potential weakness in demand for corporate travel.
- A period of subdued corporate travel may be anticipated.
- This outlook is influenced by geopolitical and financial uncertainty from the US.
- Firetrail Investments continues to monitor the situation closely.
ECP Asset Management
31 Jan 2025
$15.40
Summary
- ECP Asset Management notes that Corporate Travel Management Ltd (CTD) has outperformed recently.
- The positive performance is attributed to a more optimistic outlook for global corporate travel, especially in North America.
- Currency tailwinds have contributed to the company's success.
- ECP Asset Management remains focused on CTD's ability to execute in North America.
- The firm is also monitoring the continued recovery in travel volumes.
QVG Capital
31 May 2024
$13.30
Summary
- QVG Capital continues to hold its position in Corporate Travel Management Ltd.
- Recent market reactions show weakness due to brokers lowering FY25 earnings expectations.
- The market is adjusting to more conservative forecasts for Corporate Travel’s UK division.
- This UK division has previously benefited from lucrative crisis repatriation work in regions like Afghanistan, Ukraine, Sudan, and Israel.
- Corporate Travel is a founder-led business with a strong history of organic growth.
- Currently, Corporate Travel trades at 14x forward (rebased) after tax earnings.
- The company is actively buying back stock.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Corporate Travel Management Ltd (ASX:CTD)?
Fund managers including Centennial Asset Management, Katana Asset Management, Firetrail Investments, QVG Capital, ECP Asset Management, Forager Funds, Wilson Asset Management, Spheria Asset Management, Elston Asset Management and Paradice Investment Management have invested in Corporate Travel Management Ltd (ASX:CTD).
Why do fund managers invest in Corporate Travel Management Ltd?
Fund managers invest in Corporate Travel Management Ltd (CTD) due to its established position in the corporate travel sector, significant growth potential, and relative resilience despite market volatility. Despite recent downgrades and geopolitical concerns affecting travel demand, some funds see opportunity in acquiring shares at lower prices, anticipating a recovery as travel volumes return. CTD's asset base, including cash reserves and no debt, contributes to a favorable risk/reward profile, though the recent suspension of trading and financial restatement heightens investment risks.
What happened to Corporate Travel Management Ltd (ASX:CTD)?
Fund managers have invested in Corporate Travel Management Ltd (CTD) despite recent challenges due to the company's potential for recovery post-financial restatements. Although the European division's revenue recognition issues led to significant write-downs and a trading suspension, fund managers see value in CTD's cash position and overall business framework. They acknowledge the historical nature of the financial problems and the company's continued efforts to rectify governance concerns, while remaining cautious about future prospects. The investments represent a strategic commitment to a fundamentally sound business aiming to regain market confidence.
What is the short interest in Corporate Travel Management Ltd (ASX:CTD)?
The short interest in Corporate Travel Management Ltd (ASX:CTD) is 9.40% which makes it the 12th most shorted stock on the ASX. Of the 146.3M shares that Corporate Travel Management Ltd has on issue, 13.8M have been sold short.
What does Corporate Travel Management Ltd (ASX:CTD) do?
Corporate Travel Management Ltd. engages in managing the procurement and delivery of travel and accommodation agency services for its clients. It operates through the following geographical segments: Australia and New Zealand, North America, Asia, Europe, and Other. The Other segment refers to the group’s support service, created to support the operating segments, and growth of the global business. The company was founded by James Michael Pherous in 1994 and is headquartered in Brisbane, Australia.