Corporate Travel Management said it has concluded negotiations with the UK government potentially concluding an overcharging scandal that has so far resulted in the firing of its chief executive and resignation of its founder.
In April, the company said it planned to reverse revenues of up to £118 million ($224.8 million) in respect to fiscal year 2025 and prior years “as result of certain issues identified in the UK business”.
On Friday, it said it had received binding offers from key impacted UK customers that collectively account for £102 million (or 86 per cent) of a total estimated liability of £118 million.
Those offers will require Corporate Travel Management to refund a total of £87 million to the relevant customers, £11 million of which has already been paid.
“Reaching agreements with impacted UK customers representing 86 per cent of the total estimated liability is a major milestone for CTM and reflects our commitment to doing the right thing by customers,” said Ana Pedersen managing director and group CEO.
“These outcomes are the result of months of constructive engagement between CTM, its advisers and affected customers, whose cooperation and support throughout this process has been greatly appreciated.”
Shares in the Australian company have been in a trading halt for a year after it revealed overcharging of the UK government in 2025. The company fired its European and UK chief executive in December. Founder and managing director Jamie Pherous resigned in February.
