Corporate Travel Management reports a 28% growth in underlying EBITDA and re-iterated its full year FY14 EBITDA guidance of $27.0m-$28.0m
Financial Highlights by region:
- Underlying EBITDA growth up 6% on p.c.p ($1.1m one off acquisition costs relating to Asia)
- EBITDA margin improved on p.c.p, despite continued subdued economic conditions.
- Underlying TTV organic growth of 7% offset by the continued decline in average ticket prices and economic activity. Although CTM has experienced declining activity for 12 months, it appears to have steadied in CY14.
- The period saw a strong result in record new client wins, as a result of executing on FY14 growth initiatives, coupled with continued high levels of client retention.
- New client wins in 1H exceeded total client wins in full year FY13, with majority of wins not yet transacted, CTM expects to convert new business wins into transactions in 2H with the full effect in FY15.
- CTM remain highly leveraged to economic recovery but will still carry strong momentum into FY15, despite the state of the economy, due to new wins converting to transactional.
- EBITDA growth of 75% on a ’like for like’ basis, after inclusion of the TravelCorp acquisition into the 1H baseline.
- The result comes from continued organic growth and executing upon initiatives that leverage scale.
- The TravelCorp integration is on track to be completed, as planned, by 30 June 2014.
- CTM expects a stronger 2H due to seasonality and momentum of new wins not yet transacted.
- CTM continues to actively explore further accretive USA acquisitions into FY15, potentially to be funded by CTM cash flow.
- Westminster Travel 75.1% equity acquisition completed on 29 January 2014.
- Westminster Travel will make a 5 month contribution to profit in FY14.
- Management accounts and business performance, to date, are in line with our internal expectations.