Corporate Travel Management Ltd (ASX: CTD) offers corporate travel management services. The company operates on a fee for service model and provides business travel advice and services, bookings, ticketing, and ancillary services and offers travel data diagnostics and recommendations.
The company, today on 20th March 2019, presented an Investor Presentation themed “Building a Global Business”. Headquartered in Australia, the company employs approximately 2,700 FTE staff; and the CTM network provides localised service solutions to clients globally.
The company's value proposition lies in the fact that it provides highly personalised services to its clients and customers. The company has introduced some compelling technology that adds value to its services and also works on the return on investment methodology. As of year 2019, the company has approximately 2,700 personnel, with its global business comprosied more than 70% of revenue from offshore. Also, the management has forecasted a TTV of $6.5 billion for FY19. The company’s TTV has grown phenomenally over the years and has grown more than 18-fold in nine years.
At the time of IPO, the company had its 100% profit generated from the ANZ geographical segment. However, in 2019, the company’s business is well diversified geographically with now only 32% of the profit derived from ANZ, while it garnered 24%, 18% and 26% of the profits from the Europe, Asia and other geographical segments, respectively.
The company is successful in replicating a high-quality model off-shore, which has led to company winning awards in every region. The company won AFTA NTIA Best National Travel Management Company for the 12 times.
The company has identified its measures of success, which are Return on Equity (ROE), organic growth, operating cash conversion and best practice metrics through technology. On the ROE front, the company is averaging 20% ROE since FY14. ROE is the company’s appropriate measure, given it acquires via capital raisings. The company considers organic growth as the critical driver post completion of the regional footprint. The company has achieved an average 18% organic CAGR in Phase 2, which comprises of growing each region organically. Moreover, operating cash conversion rolling 7-year averaged near 100% through Phase 1 and 2 expansion. Also, it is expected that the company will achieve approximately 100% operating cash conversion over FY19 and beyond.
On the price-performance front, the stock has posted the YTD return of 14.14%. The company also has posted returns of 11.98% over the past three months. At the time of closing (20 March 2019), the stock of the company was trading at a price of A$25.36, up 4.362% during the day’s trade with a market capitalisation of ~A$2.64 billion. The stock opened the day at A$24.560, reached the intraday high of $ 25.860, and touched an intraday low of $ 24.440, with an daily volume of ~715,604 . It had a 52-week high price of $ 33.870 and a 52 weeks low price of $ 19.200, with an average volume of, 325,675 approximately.
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