Corporate Travel Management is poised to disclose that it overbilled the British government by more than £120 million ($227 million), sharply up from earlier estimates and deepening investor anxiety.
The ASX-listed travel agency, whose shares have been suspended for months, has been under pressure since signalling financial issues linked to its extensive United Kingdom contracts.
Its November update cited about £80 million in overcharges to customers but that figure has escalated as the company reworks its books.
The company engaged KPMG to conduct a forensic audit to determine the full scale and mechanics of the overcharging problem, focusing on its major UK government arrangements.
People involved in the process say the expected £120 million-plus exposure emerged as Corporate Travel reassessed past billings to prepare for a potential sharemarket return.
Corporate Travel has declined to comment on the developing numbers, maintaining public silence while the review continues.
In its last formal update, Corporate Travel said it aimed to complete the KPMG forensic audit by the end of March, giving the market a clearer view of the damage.
That timetable was also tied to an ambition to have the stock relisted on the ASX by the end of June, after months in trading limbo.
Investors and counterparties are watching the expanding overcharge estimate closely, as it shapes the company’s eventual liability to the British government and the conditions for any trading resumption.
