Corporate Travel Management (ASX:CTD) shares fall on strong FY23 results

• Corporate Travel Management (CTD) posts strong FY23 data pointing to a recovery from COVID years
• However, the stock has been in the red all-day
• The news leaves investors pondering what’s next, but the likely catalyst is a UK government contract
• Corporate Management takes on liability for services on a floating barge in Dorset housing asylum seekers
• CTD shares are down 7.67 per cent, trading at $17.94 at 2:12 pm AEST

Corporate Travel Management (CTD) has announced its results for the FY23 period, logging a huge growth in net profit after tax (NPAT) – but still eyes a sell-off.

The company’s profits for FY23 were at $92.5 million as opposed to $19.8 million in FY22, reflecting a corporate travel sector recovering from the COVID years.

EBITDA was also higher at $167.1 million for FY23 versus $59.8 million for FY22. The company held $151 million in cash at the end of the financial year and zero debt.

The company is paying a final dividend of 22 cents unfranked and expects to deliver record earnings per share (EPS) in FY24.

However, despite these strong results, investors sold off Corporate Travel Management stocks in the first leg of the trading day.

According to Australian financial publications, of possible concern to CTD’s investor base is its continued partnership with a UK entity to house refugees from Ukraine, Sudan and Afghanistan on a barge in English waters.

The Home Office contract is worth some $3 billion to Corporate Travel and its shareholders.

A group of NGOs and refugee advocate bodies recently wrote to Corporate Travels’ contract partner Bibby Marine, calling the move to house refugees in a floating barge is “cruel and inhumane.”

CTD shares were down 7.67 per cent, trading at $17.94 at 2:12 pm AEST.