- Shares in business travel coordinator Corporate Travel Management (CTD) have soared today, despite being heavily hit by recent travel restrictions
- To deal with the blow, CTM has put cost reduction strategies in place to keep the company afloat
- Unfortunately, these strategies involve a number of redundancies
- As a result, the company has also deferred its interim dividend until October 2
- CTM told the market it has a strong liquidity position and doesn’t need to raise equity for the time being
- Despite the announcement, CTM is up 23.2 per cent, selling shares for $5.79 apiece
Shares in business travel coordinator Corporate Travel Management (CTD) have soared today, despite being heavily hit by recent travel restrictions.
To deal with the blow, CTM has put cost reduction strategies in place to keep the company afloat.
The company says it aims to save $10 million per month with its new vision. Unfortunately for staff, this will result in redundancies.
On top of this, CTM has also chosen to withhold an interim dividend. The company says it will defer the shareholder payment until October 2.
While the recent travel restrictions have significantly impacted CTM’s business, many of its clients are continuing to travel. According to CTM, over half the company’s time to value (TTV) is in domestic travel.
Despite the uncertainty, CTM has told the market it has a strong liquidity position and has no need to raise equity. Currently, it has a committed debt facility of $250 million, which will end in August 2022.
CTM is up 23.2 per cent and is selling shares for $5.79 apiece at 2:31pm AEDT.