Australian travel management company Corporate Travel Management has disclosed in a statement to the Australian Securities Exchange that a forensic accounting review by KPMG has revealed more than £118 million ($160 million) in account discrepancies and overcharges to its UK customers.
In its initial review, the company had estimated accounting errors would total £77.6 million (about $105 million). However, following further investigations into major accounting errors, the KPMG review uncovered an additional £40.4 million ($55 million) in irregularities going back to its 2019 financial year, “the entirety of which arises in CTM UK Group,” according to the statement.
CTM said it is expecting to “reverse revenue” something less than the entire £118 million, given amounts already refunded and ongoing client negotiations. “The total refund amounts to be provided and the timing for such payment over future financial years is subject to CTM reaching commercial agreements with customers,” the statement reads.
However, the company cautions a further amount of up to approximately £10 million of revenue may have to be reversed to cover discrepancies in the first half of FY26.
Accounting problems at CTM’s UK division date back to 2022 when discrepancies emerged with payments on several large UK government contracts. Suspicions around these discrepancies and other accounting errors led the company’s board to initiate the KPMG investigation in November 2025 which has uncovered such practices as overcharging clients and retention of refunds.
As part of the fallout from the audit, in December 2025 the company dismissed Michael Healy, its UK and Europe chief executive, for what the company called “breach of contractual obligations.” He was replaced by global chief operating officer Eleanor Noonan as interim CEO for CTM UK and Europe.
Subsequently, in February 2026, company founder Jamie Pherous retired, to be replaced by the company’s chief commercial officer Ana Pedersen as the acting CEO while CTM searches for a permanent replacement.
As part of the “corrective action” CTM is taking to reassure its customers, regulators and shareholders, the company said it is strengthening financial controls, reporting processes and documentation standards. A comprehensive review is underway of customer contracts across the UK region beyond those that were directly impacted, while process improvements and procedures to monitor current contract delivery are being put in place.
“Significant changes have been implemented within the UK business, particularly across financial controls and operational processes,” said Ewen Crouch, chairman. “These actions were necessary, and they are progressing well. It is important to note the review has confirmed these issues are isolated to the UK.”
Crouch said the company is targeting the completion of the audited FY25 and reviewed first half FY26 financial statements in the second quarter of 2026, with the goal of reinstatement of the company’s shares.
