CTM fires UK and Europe chief as £77.6m overbilling crisis deepens, audits widen, and government scrutiny mounts
CTM says years of UK billing “errors” drove £77.6 million in overcharges, triggered refunds and restated revenue, and forced a leadership shakeup while the Home Office reviews its contract and auditors run a forensic clean up.
Brisbane and London, 19 December 2025
Corporate Travel Management (CTM), the Australia listed travel management heavyweight valued at roughly $2.3 billion, has terminated its UK and Europe chief executive, Michael Healy, after the company disclosed a years long tangle of accounting failures that it says resulted in UK clients being overcharged by £77.6 million.
In an ASX announcement released Friday, CTM confirmed Healy’s employment was terminated effective immediately for breach of contractual obligations. Healy had been stood down from daily duties on 28 November while an investigation progressed, and CTM said its global chief operating officer, Eleanor Noonan, will continue as interim head of the UK and Europe business.
A multi year clean up, with money now being unwound
The financial hole is not a single bad quarter. CTM’s disclosures point to problems stretching back several years, with revenue that was previously booked now being reversed. The company has flagged it expects to restate £58.2 million across prior periods and a further £19.4 million tied to the current financial year, amounts that align with the wider £77.6 million figure now at the center of the scandal.
Industry analysts have framed the episode as a fundamental breakdown in cash controls and revenue recognition, the kind of failure that is often less about one bad invoice and more about systems, approvals, and oversight that did not work as designed.
Government clients pulled into the blast radius
The overbilling has also become a political issue in the UK, because at least one major public sector client is involved. The UK Home Office was informed of the overbilling in late November 2025, and the department is conducting an urgent inquiry while it reviews the impact on its contract arrangements.
For CTM, the timing is awkward: much of the money in question is linked to contracts that have already ended, turning the remediation into a historical reconciliation exercise, rather than a simple adjustment to a live program.
Trading suspension, index exit, and a deadline CTM does not expect to meet
The market fallout has been swift and unusually severe for a travel management company whose business depends on trust, continuity, and the perception of tight financial stewardship.
CTM’s shares have been suspended since 1 September 2025, after the company failed to lodge accounts on time while auditors examined irregularities first flagged to head office in late August.
CTM has also indicated it does not expect to lodge its financial statements before the 31 December deadline, and it has withdrawn prior guidance while the investigation continues.
The company’s prolonged trading halt is now triggering a second order consequence: CTM is set to be removed from the ASX 200, effective 22 December 2025, following the quarterly rebalance.
New auditors, forensic work, and an IATA backstop
The accounting issues were surfaced after CTM appointed Deloitte as its new auditor, replacing PwC, a change that preceded the deeper review now underway.
CTM has engaged KPMG to conduct a forensic review of the UK business’s financial processes and governance, work CTM says is still ongoing.
One striking detail now sitting in the public record is CTM’s need to reassure the market that day to day travel operations can keep running even as its accounts are unresolved. CTM says it has entered a financial security arrangement with the International Air Transport Association (IATA) to ensure continued BSP airline ticketing activity without disruption to client service.
The pressure is not confined to Europe
While the overbilling issue is concentrated in the UK group, CTM has also disclosed additional financial stress elsewhere, including provisions for $13.9 million in bad debts within its Australian and New Zealand accounts, adding to investor concerns about broader control weaknesses.
What happens next
CTM says it will provide a further update in February 2026 on timing for finalizing its FY25 financial statements, including prior year restatements, and that refund discussions with certain UK customers are continuing.
For corporate travel buyers, the practical question is simple: whether the episode is a contained accounting failure that can be refunded and closed, or a deeper governance problem that reshapes how clients assess risk in outsourced travel management. For CTM, the challenge is bigger than writing cheques. It is rebuilding confidence in the controls that sit behind every fare, fee, and reconciliation line item that corporate clients assume is accurate.
