Corporate Travel Rejects Claims from VGI Report

  • Mar 02, 2020 AEDT
  • Team Kalkine

Corporate Travel Management (ASX: CTD) has responded a report published by VGI Partners (VGI), wherein it raised five concerns:

  • VGI’s report claimed that CTD had “blamed” the company’s 1H20 result on the coronavirus
  • VGI’s report claimed that volume-based revenue is in decline
  • VGI claimed that CTD produced negative free cash flows to equity in 1H20 and is unable to reconcile its cash flow movements mentioned in the company’s investors presentation
  • VGI’s report claimed that CTM has been increasingly capitalising software development, and amortisation of previously capitalised costs are an increasing drag on profits
  • The report raised questions about intra-period borrowings, and raised the prospect of using credit cards to pay bills while repaying debt

CTM has rejected the claims of irregularities contained in the report.

At AEST 01:00PM the stock was trading at $13.130 per share, down by 5.811% from its previous close.

 

 

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