Hi, it's Paul here.

Here is the placeholder for Monday's reader comments.

I'm on the afternoon shift today, so estimated time of completion here is 5pm.

Update at 16:36 - today's report is now finished.



Ten Lifestyle (LON:TENG)

Share price: 119p (up 3.5% today, at 11:57)
No. shares: 80.65m
Market cap: £96.0m

Full year trading update 

Ten Lifestyle Group plc (AIM: TENG), a leading technology-enabled lifestyle and travel platform for the world's wealthy and mass affluent, is pleased to announce the following trading update ahead of its preliminary results for the year ended 31 August 2019.

I was deeply unimpressed with the figures, when reviewing this company after its profit warning here in Nov 2018. The share price has since more than tripled in less than a year. This seems to have been driven by a series of contract win announcements, and a global roll-out.

Looking briefly at its interim results for the 6 months to 28 Feb 2018, revenues were up 24% to £21.5m, but it remained loss-making, with an adjusted operating loss of -£2.9m. Cash was falling quite quickly, with £13.2m remaining. I'm remain not at all impressed so far.

Today's trading update -

The Board expects to report Net Revenue1 in line with  market expectations2, whilst it is anticipated that the Adjusted EBITA3 loss for the full year will be ahead of market expectations.


Cash burn - has improved dramatically from H1 to H2. But should a company valued at £96m really still be cash-burning at all? -

The year-end cash balance will be c.£12m with no debt, representing an overall reduction in cash of c.£1m in H2 compared to an overall reduction of £7.5m in H1.


Outlook - its pipeline of new business remains strong.

My opinion - this business appears to be valued on the basis of hopes of further expansion, and breaking into profit in future. Therefore I think prospective investors would need to do more research on its services, and how they compare with competitors.

It's signing up some impressive customers (banks mainly). Also, H2 looks to have been a big improvement on H1.

It might be one to keep an eye on, but in current highly sceptical markets, I really cannot understand why this jam tomorrow…

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