Corporate Travel Management Ltd’s [ASX:CTD] shares are trading at $28.41, up 13.10% after reporting double digit growth in their 2019 half year results.
The business travel agent has previously faced trouble from short sellers last year, as well as being slapped with a critical report from VGI Partners that raised 20 red flags and wiped $800 million from its market value, as reported by The Sydney Morning Herald.
As this unfolded, VGI was sued by CTM, for misleading in their report.
But things seem to be turning around for Corporate Travel Management with the release of their results.
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Corporate Travel Management’s Share Price shows good HY results
However, the company also reported a revenue growth of 23%, to $212 million, with its net profit after tax growing 27% to $38.8 million
The results speak for themselves according to CTM’s managing director Jamie Pherous, after he was asked whether VGI’s report continued to weigh on the company.
‘It is what it is. All I can do is get on with doing numbers and eventually performance takes care of things,’
‘They can do what they like’, Mr Pherous said.
Corporate Travel Management has delivered a strong result, exceeding forecasts according to Senior analyst Belinda Moore from Morgans.
‘This is a company that is delivering very strong earnings growth and has ever since listing,’ she said.
‘In terms of VGI’s comments, we do not agree with them. The share price is up strongly today in recognition of a great results and what looks to be a very strong outlook for the company.’
Corporate Travel careful not to get ahead of itself
Despite encouraging half year results, Mr Pherous warned investors not to get ahead of themselves.
CTM has remained reserved in its assumptions underlying its guidance, which included potential impacts of the Australian election, United States currency prices and Brexit, as reported by The Sydney Morning Herald.
‘We’re being very conservative, but please don’t get ahead of yourselves,’ Mr Pherous said in regards to company’s earnings call.
‘Clearly we’re getting a tailwind but don’t get ahead of yourselves, who knows what is happening with the US dollar these days,’ he added.
More to come.
For Money Morning
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