CTD has delivered a result ahead of many nervous expectations following the recent Omicron wave of the pandemic. The stock rallied 7.5% yesterday after the company more than doubled its revenue as travel restrictions start to lift, the 120% lift in revenue led to a small $0.4mn loss which should be comfortably reversed moving forward. North America and Europe led the charge with Australia likely to follow suit as corporates return to the office – a great read through from DXS on this front.
However the standout positive was ongoing new customer gains with their improved technology offering likely to maintain this trend. The company is sitting on almost $200mn in cash as the business looks for ongoing expansion opportunities – we always praised the boards front foot approach to acquisition in the height of the pandemic. This is a great travel business which is not trading on challenging valuations.
MM is bullish CTD
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