Corporate Travel Management (CTM) has defied flat economic conditions to post its strongest financial year on record.
CTM recorded an $11.8 million profit after tax for the 2012 financial year, marking a 43% hike on the previous year. Total transaction value climbed 36% to $683 million, with revenue increasing 40% to $65.28m.
As business travel slows amid tough trading conditions, managing director Jamie Pherous said the company outperformed the market.
“This is a great result considering the state of the broader economy,” he told The Nibbler. “We were near the top of our guidance, which is a pleasing result given the flat economic conditions.”
Pherous attributed the gains to “consistent growth” across all its brands and ongoing meetings and events growth. A successful acquisition strategy was also a key component, he added.
CTM expects to see a further 15-20% of targeted earnings growth for the next financial year. However, Pherous admitted further erosion in the economy could threaten the target.
“Economic uncertainty means that we need to keep a strong client focus on service and delivering savings. There will be no free kicks from the economy in the year ahead,” he said.
The firm will focus on product innovation and improving its marketshare over the year ahead. CTM also plans to replicate its model offshore.
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