​​​​​​​Corporate Travel Management Awarded £1.6 billion Contract by UK Home Office

Highlights:

• Corporate Travel Management has announced that it has been awarded the Bridging Accommodation & Travel Services contract.
• The Bridging Accommodation & Travel Services contract is a highly complex undertaking that will require extensive logistical support.
• It represents a significant opportunity for growth and expansion, and CTM is well-positioned to take advantage of this opportunity.

Corporate Travel Management (ASX: CTD) has announced that it has been awarded the Bridging Accommodation & Travel Services contract by the UK Home Office. The contract, estimated at £1.6 billion (approximately AU$ 3.0 billion), will commence on 1 March 2023 and run for 2 years, with the ability for a one-year extension in line with ongoing demand requirements.

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Highly Complex Services and Logistic Support

The Bridging Accommodation & Travel Services contract is a highly complex undertaking that will require extensive logistical support. Fortunately, CTM has already established a dedicated team with the experience and specialized knowledge necessary to meet these demands. The region covered by the contract is already CTM's strongest contributor to the company's financial results, and this contract will have a significant impact on the further growth of CTM's European region in FY24 and beyond.

Growth Prospects for CTM

The contract with the UK Home Office represents a major opportunity for CTM to expand its operations in Europe. As the company continues to grow, it is well-positioned to take advantage of new business opportunities and expand its reach even further.

Commenting on the contract award, CTM's CEO, Jamie Pherous, said, “Over half our business now is government or essential services… it just lends itself to a higher quality of recurring earnings,” he said.

As of 10:30 am AEST today, the company's shares had risen by 10.1% to AU$ 20.80.

Pherous stated that CTM was granted the contract due to its alignment with the company's strengths and experience, as demonstrated by the development of new logistics and software solutions during the pandemic.

Final Words

The Bridging Accommodation & Travel Services contract awarded to CTM by the UK Home Office is a major achievement for the company. It represents a significant opportunity for growth and expansion, and CTM is well-positioned to take advantage of this opportunity. With a dedicated team in place and a strong track record of success, the company is poised to continue its growth trajectory and deliver outstanding results for its clients.

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