Nov 28 (Reuters) - Australia's Corporate Travel Management CTD.AX withdrew its forecast for long-delayed fiscal 2025 earnings on Friday and said it would reverse 77.6 million pounds ($102.66 million) of revenue for past three years linked to a customer in the UK.
The Australian travel management services provider did not name the UK client who concluded the contract. It said its head of UK and Europe division, Michael Healy, had stood down temporarily and that Eleanor Noonan, its global chief operating officer, would take over the role on an interim basis.
Corporate Travel has been running a major UK government contract since June 2023 to provide travel logistics services for asylum seekers.
The company said it would adjust revenue by a total 77.6 million pounds across fiscal 2023 to 2025, including up to 58.2 million pounds to be restated for 2023 and 2024, and a further 19.4 million pounds in 2025 tied to customer refunds and revenue that can no longer be recognised.
It warned that more adjustments might follow as it raced to finalise its overdue 2025 results.
A review of UK accounts has forced the firm to overhaul its books, potentially raising doubts over the profitability of its UK and Europe business.
"Up to a third of European revenues from FY23-25 may need to be restated and possibly refunded, which could lead to significant cash impacts," said RBC Capital Markets analyst Wei-Weng Chen.
Its shares have been suspended from trading since August on failure to release financials results within regulatory deadline and after the company admitted it needed to revisit the timing of revenue recognition in UK operations.
The company said it would update the market by December 19 when it would be able to release its 2025 report.
It also flagged fresh pressure closer to home, saying its 2025 accounts would include additional A$13.9 million ($9.09 million) in provisions for the Australia–New Zealand business.
($1 = 0.7559 pounds)
($1 = 1.5300 Australian dollars)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Subhranshu Sahu)
((Rishav.Chatterjee@thomsonreuters.com))