Corporate Travel Management down almost 6% despite strong results

The news: Travel solutions company Corporate Travel Management is back within range of its pre-COVID earnings, but investors were unimpressed, pushing CTD shares roughly 6% lower.

The numbers: Corporate Travel Management posted an annual statutory net profit after tax of $77.6 million, up significantly on FY22's $3.1 million and approaching FY19's $86.2 million as travel markets recover from years of pandemic disruptions. The company reinstated a final dividend of 22 cents per share (unfranked), down from 40 cents in FY19. CTD shares were down 5.8% to $18.31 at 3:20pm AEST.

The context: Corporate Travel Management played the pandemic strategically by focusing on snapping up assets, including its $175 million acquisition of Helloworld in April 2022. It also won a contract with the UK government to manage accommodation for asylum seekers, which is expected to be worth £1.6 billion ($3.1 billion) over two years but has raised ethical concerns with shareholders like Future Super.