CTD: Issues expanding

Research evidence excerpt

CTD: Issues expanding

EQUITY RESEARCH QUICK TAKE

Royal Bank of Canada, Sydney Branch

Wei-Weng Chen (Analyst)

Jackie Moody (Analyst)

June 24, 2026

Corporate Travel Management Ltd

Issues expanding

ASX: CTD | AUD NA | Sector Perform | Price Target AUD 15.00

Sentiment: Negative

CTD has announced today it now expects to lodge its FY25 and 1H26 accounts in August 2026 (we note no FY26). Additionally,

a number of incremental issues have been outlined and other non-UK segments are being impacted. ANZ and North America

will now see goodwill impairments to reflect "more conservative growth forecasts, increased cost of capital and investment in

governance". With issues continuing to arise even at this late stage, we see the pathway to a re-listing narrowing. We also view

recent negative media attention on the audit sector as another unfortunately timed headwind for CTD - we fear the bar for Deloitte

(CTD's auditor) to sign-off on accounts may have now materially risen.

Incremental from prior releases:

• Booking margin issues. "CTM UK has reviewed client contract terms relating to margins on air bookings. The review has identified

a number of contracts requiring further assessment of the contractual basis for recognising related margin revenue. CTM UK is

completing this work to determine the appropriate accounting treatment and any financial impact."

• ANZ revenues are now impacted. CTD now expect to recognize an FY24 restatement of $10 - $15 million in ANZ. These amounts

primarily relate to rebates or similar payments under certain ANZ contracts from FY19 - FY24. Previously, the company disclosed

$13.9 million in additional provisions in ANZ predominately related to credit loss provision on receivables from CY22-CY24.

• Impairing ANZ and US goodwill.