AUS
NZ
UK
CA
USA
IND
Highlights
- Corporate Travel is an Australia based company which offers business travel management services
- Australian’s spending on transport surged by 12.3% in February 2024 on pcp
- By FY29, the company targets to double its FY24 profit
Corporate Travel Management Limited (ASX:CTD) is an ASX-listed company which provides business travel management services. Its core operations involve organising the procurement and delivery of travel services for its client base. The company operates multiple segments including Australia and New Zealand, North America, Asia, and Europe.
Constructive indicators for consumer sector
Data released by the Australian Bureau of Statistics (ABS) on 4 April 2024 indicated that household spending in Australia has increased by 3.6% in February 2024, with all states and territories recording increase in spending rates in comparison to January 2024.
In February transport spending increased by 12.3% as consumers spent more on transport services such as cruise, tours and travel.Transport was the major contributor to total spending growth.
The above data bodes well for the consumer sector stocks.
Recent financial performance of CTD
During the six months ended 31 December 2023 (1HFY24), revenue and other income of CTD increased by more than 25% YoY to AUD 363.7 million, backed by new clients win and cost saving initiative undertaken during the reported period.
In 1HFY24, underlying EBITDA jumped more than 96% YoY to AUD 100.7 million and statutory NPAT increased by more than 222% YoY to AUD 50.4 million, underpinned by growth in topline.
Recent business update
Through an ASX announcement, CTD revealed that Ewen Crouch, its director, had bought 1000 shares in the company for AUD 17 per share on 19 March 2024. With this transaction, total shareholding of Crouch has increased to 16,000 shares.
Outlook
The company had revised its FY24 guidance. In FY24, it expects to report underlying revenue in the range AUD 730 million to AUD 760 million, EBITDA in the range of AUD 210 million to AUD 230 million, PBAT in the range of AUD 167 million to AUD 187 million and NPAT in the range of AUD 125 million to AUD 140 million.
Moreover, the company has shared its five-year plan of doubling FY24 profits by FY29, targeting compound annual growth rate(CAGR) of 15%.
Share performance of CTD
CTD shares closed 1.47% higher at AUD 16.580 apiece with a market capitalisation of AUD 2.39 billion on 8 April 2024. In the past 12 months, CTD’s share price has declined by 11.43% and in the last three months, it recorded a fall of 12.64%.
The 52-week high of CTD is AUD 21.90, recorded on 13 April 2023, while the 52-week low is AUD 15.50, recorded on 4 October 2023.
CTD Daily Technical Chart, Source: EODHD/Others
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 08 April 2024. The reference data in this report has been partly sourced from EODHD/Others.
Disclaimer
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