Corporate Travel Management scraps guidance, suspends UK CEO
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The news: Corporate Travel Management has scrapped its FY25 guidance after announcing that "material restatements" will be required to reverse nearly GBP80 million ($162 million) in reported revenue between FY23 and FY25.
The numbers: The company said that auditors KPMG have assessed around 47,000 documents and analysed over 1.5 million sales and purchases transaction lines, representing aggregate transaction values worth more than GBP400 million.
An estimated GBP58.2 million in reversal adjustments will be required across FY23 and FY24, with another GBP19.4 million expected in FY25.
The context: Corporate Travel, which has been suspended from trading since failing to release its FY25 results in August, said further restatements and adjustments may be required as a result of KPMG's ongoing work.
In a separate announcement this morning, the group confirmed that UK and Europe CEO Michael Healy has been "temporarily stood down" with immediate effect. Healy will continue to be paid while suspended.
Global chief operating officer Eleanor Noonan will act as interim CEO for UK and Europe, while the board conducts further investigations.
