Corporate Travel Management Limited

ASX:CTD

Corporate Travel Management Limited

ASX:CTD
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$16.07 (-0.1%)
Last close price
#118
Rank
7
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19
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Reports (5) My Report Forum Investors
Forum Topics CTD CTD AGM report

Pinned straw:
Karmast
Added one year ago

I attended the Corporate Travel AGM last week.

It was a shareholder friendly meeting with all questions asked and answered in the room, with Directors speaking to their elections and staying around after the meeting to chat with shareholders.

There was some tough questions about capital allocation decisions over the past 5 years and the lack of return on some of the acquisitions and tech spend. Management noted them and reaffirmed they believe they have the system in place now to double earnings over the next 5 years...time will tell on that one...

Given Jamie is a strong and entrepreneurial founder (which poses some risk as we have seen elsewhere recently), he and the Board were asked what they were doing to assess culture, ensure they were getting the full story and improve staff engagement.

Whilst there was nothing wrong with the answers given, they didn't convince me that these issues were being addressed or overseen as well as one might like.

So, I came away comfortable with my decision to exit recently. Not because I doubt Jamie's commitment to growing earnings that should see a significant improvement in the share price as a result. Simply due to concerns the current Board is not adding enough value or possibly oversight and also the mediocre numbers being seen for staff engagement and customer satisfaction.

I could be wrong but these are risks I am happy to avoid for now.
JohnnyM
Added 3 months ago

G'day @Karmast , I note in your last Straw on CTD that you sold out due to concerns over the Board not adding value or providing oversight.

Just wondering if you have any thoughts are on the CTD trading halt announced yesterday? A material correction needs to be made... Hmmm the mind boggles.

As a beancounter I can't help myself.. Having taken a quick look at the Balance Sheet... I'm going take a guess.. I reckon it'll be a F'up in revenue recognition and the resulting "Asset" of Trade Receivables.. That "Asset" is about to get materially impaired.. Let's see hey.. fun times!

Disc.. I don't know anyone who works for CTD, I don't own IRL or on SM.. Just taking a guess for shits and giggles..

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Karmast
Added 3 months ago

Hey @JohnnyM

I am most definitely not an auditor or forensic accountant - well outside my circle of competence. So won't opine yet re the accounting part of what was announced and the implications.

However it wouldn't surprise me at all if things have at best been missed by the Board and the audit and risk committee, based on the "people" or "culture" concerns I had noticed while following the business more closely. It's one of the benefits of attending AGM's and asking normal but probing questions that you don't get from analysts calls where they just want forecasts. Based on the responses I saw, the risks seemed higher than I am comfortable with and I was happy to avoid having that risk in my portfolio from then on.

For what it's worth, JB Hi Fi is the other one of the last few years, where Board risks seemed too high for me. Different to CTD though. In their case it's an overconfident and dismissive Chair, who has been selecting other Directors cut from similar cloth in my humble opinion. Of the dozens of AGM's and Board engagements I have had over the past few years, the JB Board was the least shareholder friendly and most disinterested in their regular shareholders I've encountered. It's a great business but some kind of unnecessary blow up there wouldn't surprise me at all at some point in the next few years.

21
edgescape
Added 2 months ago

I noticed this is still in trading halt when checking the announcement for late reporting the other day via hype stock MTM

Never thought a billion dollar market cap company that has been around for so long would get into such a dire situation.

Not good

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