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Corporate Travel Management has hit back at what it described as VGI Partners “mischievous and misleading claims”, extensively citing the findings of EY, which it hired last week to badess so-called “red flags” raised by the hedge fund.
“At the core of VGI’s conclusions is a fundamental misunderstanding of the corporate travel sector and the CTM business model,” the company said in a statement to the ASX. Shares in Corporate Travel are expected to resume trading on Thursday.
The company hired EY last week to help it counter VGI’s claims, which wiped more than a quarter of the company’s market value, since they were aired late last month.
Corporate Travel said they engaged with EY, “specifically because of its experience in the travel sector.” EY is the auditor of ASX listed Flight Centre.
In an eight-page response Corporate Travel said it relied on the accounting firm’s badessment that its low interest income is “not reflective of its closing cash balance.”
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Corporate Travel also sought to address the fund’s claim about phantom offices, stating that it currently had 2,666 staff, with 800 staff in Asia. VGI Partners had specifically called on Corporate Travel to provide a breakdown of its staff by location.
More to come.
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