Corporate Travel Management (CTM) has revealed major accounting errors totalling £77.6 million, prompting the immediate suspension of its UK and Europe chief executive and triggering a comprehensive overhaul of financial controls across the division.
The Australian-headquartered travel management giant said it will reverse revenue of up to £58.2 million from its 2023 and 2024 financial year accounts after discovering that a “small number” of UK clients had been overcharged. A further £19.4 million is expected to be reversed from its current FY25 accounts due to customer refunds and cases “where contractual uncertainty may not allow for revenue to be recognised”.
CTM managing director Jamie Pherous described the issue as isolated to UK operations. As a result, UK & Europe chief executive Michael Healy has been “temporarily stood down” while investigations continue. Global chief operating officer Eleanor Noonan will act as interim CEO for the region.
In a statement, CTM said it has already met impacted customers and launched “a comprehensive review of financial processes and record keeping” within its UK business. An external governance review will also examine why the discrepancies were not identified earlier.
CTM would not confirm whether the UK government, one of its significant clients, was among those affected. Analysts were also unable to obtain clarity on whether the discrepancies involved excess fees or retained commissions. According to reporting by the Australian Broadcasting Corporation, the issue may relate to refunds from cancelled airline tickets that were not passed back to customers.
Pherous apologised to shareholders and clients, saying the company was committed to finalising its FY25 accounts with auditors and strengthening governance.
CTM chairman Ewen Crouch said the situation was “serious” and had caused understandable concern. He said a full review of UK operations and the company’s broader governance framework was under way and that all necessary remediation would be provided to affected clients.
“While these are challenging circumstances, our core operations remain strong and the quality of service to clients has not wavered,” he added.
The findings come amid an ongoing forensic review of CTM’s European financial statements by KPMG, appointed in September after initial discrepancies were discovered in August. KPMG’s interim report, delivered on 23 November, analysed more than 47,000 documents and 1.5 million transaction lines covering over £400 million in sales and purchases.
Beyond the £77.6 million in confirmed overcharging, auditors also flagged £45.4 million in revenue associated with several large UK customer contracts between 2021 and 2023 as an “area of concern”. These contracts have concluded, but CTM is now reviewing them to identify any further refunds due — a process likely to run into 2026.
CTM said it will reissue its FY23 and FY24 financial statements, with revised amounts to be treated as financial liabilities, and will continue working with KPMG to determine any further restatements.
CTM voluntarily suspended trading of its shares on the Australian Stock Exchange in August and delayed publication of its FY25 results. The company confirmed on Friday that the suspension will remain in place as year-end audit work continues.
CTM also withdrew its FY25 guidance, released in May 2025, and declined to provide a new timetable for publishing its full-year accounts.
The revelations mark one of the largest accounting failures to hit the global travel management sector in recent years, and raise fresh questions about oversight across CTM’s rapidly expanded European division.