REG - Ten Lifestyle Group - H1 2024 Trading Update

Ten LifestyleAnnouncement

19/03/2024 07:00

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RNS Number : 3236H  Ten Lifestyle Group PLC  19 March 2024

19 March 2024

Ten Lifestyle Group plc

("Ten" or the "Group")

H1 2024 Trading Update

 

·   Record H1 Adjusted EBITDA profitability of £5.3m

 

·   Record Active Members of 356k

 

·   Net Revenue growth of 4% at constant currency

 

Ten Lifestyle Group plc (AIM: TENG), the platform driving customer loyalty for
global financial institutions and other premium brands, announces its trading
update for the six months ended 29 February 2024 ("H1").

 

Trading Update

 

The Group expects to report half year Net Revenue(1) of c.£30.9m, in line
with the first half of the prior year (H1 2023: £30.9m) and up £1.1m (4%) at
constant currency. Active Members(2) continue to grow, up 13% on first half of
the prior year to 356k (H1 2023: 316k). The Group secured and launched some
significant contracts during the period that are expected to generate revenue
in the second half of the year.

 

Adjusted EBITDA(3) for H1 is expected to be c.£5.3m (H1 2023: £5.0m), up
£0.3m (7%) on the prior year, £0.9m (18%) at constant currency, as the Group
benefits from improved operational efficiencies.

 

At the end of H1, the Group's cash and cash equivalents position was c.£8.0m
(FY 2023: £8.2m), with net cash of c.£1.8m (H1 2023: £0.5m; FY 2023:
£3.7m). This reflects the Group's normal seasonality, to consume working
capital in the first half of the year, and the timing of client receipts. The
Group expects to generate net cash in the second half of the year.

 

The Group has continued its investment in technology, including generative AI,
and proposition throughout the period to drive improvements in service levels,
efficiencies, and Ten's competitive advantage to drive operating leverage at
scale.

 

Alex Cheatle, CEO of Ten Lifestyle Group, said:

 

"We remain focused on increasing Adjusted EBITDA profitability and cash
generation, with our investments in technology, including generative AI,
creating pathways to improve efficiencies and service levels as we continue to
grow. We also continue to convert our strong pipeline of new business, with
new contract wins and developments expected to underpin revenue growth in H2
2024."

 

 

(1 )Net Revenue includes the direct cost of sales relating to certain member
transactions managed by the Group.

(2 )Individuals holding an eligible product, employment, account or card with
one of Ten's corporate clients are "Eligible Members", with access to Ten's
platform, configured under the relevant corporate client's programme, with
Eligible Members who have used the platform in the past twelve months becoming
"Active Members".

(3 )Adjusted EBITDA is operating profit/(loss) before interest, taxation,
amortisation, depreciation, share-based payment expense, and exceptional
items.

 

- End -

 

For further information please visit www.tenlifestylegroup.com
(http://www.tenlifestylegroup.com)  or call:

 

 Ten Lifestyle Group plc                                             +44 (0)20 7850 2796

 Alex Cheatle, Chief Executive Officer

 Alan Donald, Chief Financial Officer

 Singer Capital Markets Advisory LLP, Nominated Advisor and Broker   +44 (0) 20 7496 3000

 Corporate Finance: James Moat / Oliver Platts

 Corporate Broking: Tom Salvesen / Charles Leigh-Pemberton

Notes to Editors:

About Ten Lifestyle Group Plc

Ten Lifestyle Group plc (http://www.tenlifestylegroup.com)  partners with
global financial institutions and other premium brands to attract and retain
wealthy and mass affluent customers.

Millions of members have access to Ten's services across lifestyle, travel,
dining, entertainment and retail benefits on behalf of over fifty clients
including HSBC, Coutts and Royal Bank of Canada. Ten's partnerships are based
on multi-year contracts generating revenue through platform-as-a-service and
technology fees.

Ten's operations are underpinned by an increasingly sophisticated
personalisation platform comprising industry-first, proprietary technology,
thousands of supplier relationships and 25 years of proprietary expertise
delivered from over 20 global offices.

Ten is on a mission to become the most trusted service platform in the
world.

For further information please go to: www.tenlifestylegroup.com
(http://www.tenlifestylegroup.com/) .

 

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