REG - Ten Lifestyle Group - Interim results for the 6 months ended 28 Feb 2025
23/04/2025 07:00
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RNS Number : 7542F Ten Lifestyle Group PLC 23 April 2025
23 April 2025
Ten Lifestyle Group plc
("Ten", the "Company" or the "Group")
Interim results for the six months ended 28 February 2025
Ten Lifestyle Group plc (AIM: TENG), the global concierge technology platform
driving customer loyalty for global financial institutions and other premium
brands, announces its unaudited interim results for the six months ended 28
February 2025 ("H1 2025").
Financial highlights
· Net Revenue(1) of £31.8m, up 3% on the first half of the prior year
(H1 2024: £30.9m) and up 5% at constant currency to £32.3m
o corporate revenue(2) of £28.0m (H1 2024: £27.1m)
o supplier revenue(3) of £3.8m (H1 2024: £3.8m)
· Adjusted EBITDA(4) up £0.7m on the first half of prior year to
£6.0m (H1 2024: £5.3m) and broadly flat at constant currency
· Adjusted EBITDA margin(5) increased to 18.9% (H1 2024: 17.2%)
· Profit before tax up £0.8m on the first half of prior year to
£1.1m (H1 2024: £0.3m)
· Cash and cash equivalents increased to £11.2m (FY 2024: £9.3m),
with net cash increased to £6.8m (H1 2024: £1.9m; FY 2024: £3.9m)
Operational highlights
· Won and launched an Extra Large(6) contract in the USA with an existing
global client, initially worth £5.0m per year, a Medium contract in AMEA with
a new client and two, initially Small contracts
· £6.6m (H1 2024: £6.4m) total investment in proprietary digital
platforms, communications, and technologies, of which £3.2m (H1 2024: £3.7m)
is capitalised development spend
o launched Ten's Agentic AI(7) product in beta with end-to-end booking
capability over chat, including WhatsApp, and the Ten Platform
o further enhanced Ten's proprietary CRM (Ten MAID), improving high-touch
productivity and operational efficiency
o leveraged AI and automation to enhance content and member
communications to hyper-personalise the service
· Number of Active Members(8) up on the end of the prior year to
354k (FY 2024: 349k)
· Maintained a high levels of member satisfaction(9), which drives
repeat use and value to Ten's corporate clients
CURRENT TRADING AND OUTLOOK
Since the end of the period, Ten has continued to secure Material Contract
developments that are expected to underpin profitable growth into FY 2026,
most notably:
· won a new contract spanning two regions to serve the UHNW clients of
one of the world's largest wealth managers. The contract will start as Small,
with significant potential to grow over time
· a multi-year renewal of a Large contract in Europe, including an
uplift in fees for a digitally-led service
· a multi-year renewal of a Large contract in AMEA that is expected to
grow
· a multi-year renewal of a Small contract in AMEA with improved pricing
· a new loyalty program expected to grow an existing Large contract in
Europe
· improved pricing for an enhanced engagement program under an existing
Extra Large contract in the Americas
· a data integration project under an existing Large contract in AMEA
On 25 February 2025, the Company hosted a Capital Markets Day, providing
insights on how AI and technology are improving Ten's operational efficiency
and driving growth towards its medium-term target of £100m+ of Net
Revenue and Adjusted EBITDA margin target of 30%+. This included a demo of
Ten's proprietary Agentic AI product, highlighting its capability to deliver a
members' request, end-to-end brief take, search to book over chat, including
WhatsApp, and the Ten Platform. Since then, the Group has been showcasing the
capability to its existing and prospective clients, with its first roll-out
expected in H2 2025.
Ten remains focused on delivering against its digital roadmap, including
leveraging in-house generative AI to drive personalisation, service efficiency
and quality. The Group expects to generate net cash in the second half of the
year and the Board's expectations for the full financial year remain
unchanged.
The Board continues to monitor the potential impact of global macroeconomic
factors and engagement with existing and prospective clients remains strong.
We believe that Ten's diversified service business and focus on relatively low
risk economies mitigates risk, as does our in-market delivery model for all
material markets.
Alex Cheatle, CEO of Ten Lifestyle Group, said;
"We continue to strengthen our market position through advancements
in AI-driven technology and our digital platform, helping win new contracts
and driving margin, efficiency, scalability, and service quality. Alongside a
robust sales pipeline and deep competitive moat, these investments position us
for profitable growth."
Analyst Presentation
An online Analyst Presentation will be held by video link today at 9:00am.
Investor Webinar
Additionally, an Investor Webinar tailored for current and prospective
investors will be presented on Tuesday 29 April 2025 at 4:30pm. This will
provide participants with detailed information about the Group's half-year
results and strategic initiatives and offer an opportunity to interact
directly with the leadership team.
If you wish to attend either the Analyst Presentation or the Investor Webinar,
kindly email investorrelations@tengroup.com
(mailto:investorrelations@tengroup.com) . This will ensure that you receive
the necessary details and access information for these events.
For further information, please visit https://www.tenlifestylegroup.com/
(https://www.tenlifestylegroup.com/) or contact:
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: Charles Leigh-Pemberton / Tom Salvesen
( )
(1) Net Revenue includes the direct cost of sales relating to certain member
transactions managed by the Group.
(2) Corporate revenue is Net Revenue from Ten's corporate clients, including
service fees, implementation fees, and fees for the customisation of the Ten
Digital Platform.
(3) Supplier revenue is Net Revenue from Ten's supplier base, such as hotels,
airlines and event promoters which sometimes pay commission to Ten.
(4) Adjusted EBITDA is operating profit/(loss) before interest, taxation,
amortisation, depreciation, share-based payment expense, and exceptional
items. (5) Adjusted EBITDA margin is Adjusted EBITDA as a percentage of Net
Revenue.
(6) Ten categorises its corporate client contracts based on the annualised
value paid, or expected to be paid, by the corporate client for the provision
of concierge and related services by Ten as: Small contracts (below £0.25m);
Medium contracts (between £0.25m and £2m); Large contracts (between £2m and
£5m); and Extra Large contracts (over £5m). This does not include the
revenue generated from suppliers through the provision of concierge services.
(7) Agentic AI: Artificial intelligence systems capable of autonomous
decision-making and goal-directed behaviour, often acting on behalf of users
with limited oversight.
(8) 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".
(9) Ten measures member satisfaction using the Net Promoter Score management
tool, which gauges the loyalty of a firm's member relationships.
OPERATING AND FINANCIAL REVIEW
CHIEF EXECUTIVE'S STATEMENT
We have achieved profitable growth whilst maintaining investment levels in
AI-driven technology and the overall proposition throughout the period. This
includes the development of what we believe is a world first Agentic AI
product with end-to-end booking capability (including restaurants and hotels)
over chat, including WhatsApp, and the Ten Platform. These investments are
enhancing service levels, increasing efficiencies, helping us in securing
contract developments, improving margin, and strengthening Ten's competitive
advantage, ultimately leading to better member engagement and operating
leverage at scale.
We started the period by securing two significant contract wins, both of which
successfully launched towards the end of the period and are now generating
revenue. We continued to convert our robust pipeline of contract opportunities
with global financial institutions and premium brands, while also developing
our existing corporate clients by securing contract renewals and commercial
opportunities.
Net Revenue for the period was £31.8m, up 3% on the first half of the prior
year (H1 2024: £30.9m) and up 5% at constant currency to £32.3m, with
corporate revenue of £28.0m, slightly ahead of the first half of prior year
(H1 2024: £27.1m) and supplier revenue of £3.8m, in line the first half of
prior year (H1 2024: £3.8m). The number of Active Members was up on the prior
year to 354k (FY 2024: 349k).
Adjusted EBITDA for the period increased £0.7m on the first half of prior
year to £6.0m (H1 2024: £5.3m) and broadly flat at constant currency.
Including the short-term headwinds from the set-up costs of the Extra Large
contracts in the USA, Adjusted EBITDA margin increased to 18.9% (H1 2024:
17.2%), reflecting enhanced operational performance and FX rates offsetting
the set-up costs of the Extra Large contracts in the USA. Profit before tax
(PBT) increased £0.8m on the first half of prior year to £1.1m (H1 2024:
£0.3m), marking the fifth consecutive half-year period of positive PBT.
At the end of the period, cash and cash equivalents were £11.2m (FY 2024:
£9.3m), with net cash of £6.8m (H1 2024: £1.9m; FY 2024: £3.9m). This
reflects the net proceeds of £5.7m raised through a secondary placing at the
start of H1 2025 to support the short-term working capital requirements for
the launch of the two contract wins, as well as the repayment of all related
party loans (£1.45m). Normal seasonality, which results in higher working
capital consumption in the first half of the year, and the short-term working
capital requirements for the launch of the new contracts will unwind in the
second half of the year.
Delivering improved Adjusted EBITDA and improving the net cash position,
whilst maintaining investments in technology, are key performance indicators
of the Group's strategic Growth Engine.
Corporate client developments
H1 2025 FY 2024 H1 2024
Contract By Size
Extra Large 4 3 3
Large 6 6 7
Medium 21 20 19
31 29 29
Contract by Region
Europe 8 8 8
Americas 11 10 12
AMEA 11 10 8
Global 1 1 1
31 29 29
At the start of the period, we won a multi-year Extra Large contract in the
USA with an existing global client, initially worth £5.0m per year in
corporate revenue and a Medium contract in AMEA with a new client. We believe
our digital platform is highly competitive and was a major reason why we won
these contracts. These programs have now successfully launched and are
delivering revenues, as expected, from H2 2025. During the period we also won
two, initially Small contracts, supporting continued revenue growth momentum.
We expect to continue to leverage our advancements in AI-driven
technology-enhanced member proposition, including the hyper personalisation of
the service, to convert our robust pipeline of contract opportunities with
financial institutions and premium brands aiming to enhance their customer
loyalty metrics. We also expect that our existing current corporate clients
will continue to adopt more digital-first elements from our AI-driven
innovations to increase penetration among their eligible users, with adoption
varying by value segment.
We remain confident in the strength and depth of our partnerships with
corporate clients. These clients increasingly engage Ten to deliver premium
product marketing, customer engagement, and insight initiatives, alongside
technology integration, personalisation, and unique content projects that
enhance member experiences. This reinforces Ten's position as the preferred
partner for financial institutions and premium brands seeking to attract and
retain affluent customers. Our confidence is underpinned by contract
developments with existing corporate clients since the end of the period,
including the win of a new contract spanning two regions to serve the UHNW
clients of one of the world's largest wealth managers. The contract will
launch as Small, with significant potential to grow over time. Other
developments include multi-year renewals of Large contracts in Europe and
AMEA, both with growth or pricing uplifts, a new loyalty program under a Large
contract in Europe and an enhanced engagement program under an existing Extra
Large contract in the Americas.
Investments in AI-driven technology are driving efficiencies and delivering
hyper-personalised content and communications
Ten continues to benefit from the operational, and competitive advantages of
our proprietary digital platform. We have maintained investment levels, with
£6.6m (H1 2024: 6.4m) invested in proprietary digital platforms,
communications, and technologies, of which £3.2m (H1 2024: 3.7m) is
capitalised development spend. We invested in AI-driven technologies during
the period to deliver ongoing improvements in service quality, efficiency,
scalability, and hyper-personalisation; enhancing member experience and
deepening Ten's competitive moat.
Our strategic focus on developing market-leading digital capability remains
central to Ten's "Growth Engine". By maintaining investment levels as Net
Revenue grows, we are able to deliver differentiated value to our corporate
clients by helping them attract and retain their most valuable customers.
We have achieved significant milestones on Ten's digital roadmap since the
beginning of the period, including the launch of Ten's Agentic AI product,
enabling end-to-end bookings over chat, including WhatsApp and the Ten Digital
Platform. This capability integrates live inventory, personalisation data, and
digital fulfilment workflows, delivering a faster and more intuitive
experience at scale. We also launched service functionality via LINE to expand
digital accessibility in Japan.
These developments and Ten's digital roadmap, with further expansion of
AI-driven capabilities, have been well received by existing and prospective
corporate clients, particularly where we have demonstrated our new Agentic AI
product and the ongoing automation of content delivery.
We have also continued to enhance Ten MAID, our proprietary CRM system,
improving productivity and operational efficiency of the high-touch service.
At the same time, we have used AI to optimise content creation and member
communications. We are using large language models (LLMs) to automate content
workflows, hyper-personalise communications, and reduced translation time by
up to 60%(10), significantly accelerating multi-language content delivery at
scale. Our member communications are therefore increasingly tailored,
improving member engagement and satisfaction, and thereby driving revenue.
We have maintained high levels of member satisfaction, as measured by Net
Promoter Score (NPS) and have increased the number of Active Members during
the period. These metrics demonstrate the effectiveness of member-focused
initiatives and provide evidence of the ROI for corporate clients investing in
the service.
As a certified B Corp, we have continued our efforts to build a sustainable
business. This includes broadening our ESG partners and services across
travel, dining, retail, and entertainment to give members more choice and to
meet our corporate clients' objectives, which can help secure additional
budget for our programs.
(10) The average time it takes to translate guides into 20 languages reduced
from 10 hours in April 2024 to 4 hours in January 2025.
FINANCIAL REVIEW
Results
£m H1 2025 H1 2024
£m £m
Revenue 34.1 33.3
Net Revenue 31.8 30.9
Operating expenses and other income (25.8) (25.6)
Adjusted EBITDA 6.0 5.3
Adjusted EBITDA % 18.9% 17.2%
Depreciation (1.4) (1.4)
Amortisation (2.9) (2.8)
Share based payments (0.2) (0.4)
Operating profit before interest and tax 1.5 0.7
Net finance expense and foreign exchange (0.4) (0.4)
Profit before taxation 1.1 0.3
Taxation (0.0) (0.3)
Profit for the period 1.1 -
Revenue
Revenue for the period was £34.1m, up 2% on the first half of the prior year
(H1 2024: £33.3m). Net Revenue (which is our key revenue measure) for the
period was £31.8m, up 3% on the first half of the prior year (H1 2024:
£30.9m) and up 5% at constant currency to £32.3m.
Corporate revenue for the period was £28.0m, up 3% on the first half of the
prior year (H1 2024: £27.1m) and up 4% at constant currency. Supplier revenue
(predominantly travel related) was £3.8m, in line with the first half of the
prior year (H1 2024: £3.8m).
Operating expenses & other income excluding depreciation, amortisation,
share based payments and exceptional items
Operating expenses and other income for the period was £25.8m, up £0.2m on
the first half of the prior year (H1 2024: £25.6m), as we continued to
deliver operational efficiencies while offsetting the short-term set up costs
for the two contracts won from competitors during the period. The initial
setup costs for new contracts are usually higher when taking over from a
competitor, but the programme's value increases faster because of the existing
service run rate.
Adjusted EBITDA
Adjusted EBITDA, as reported, takes into account all Group operating costs,
other than depreciation of £1.4m (H1 2024: £1.4m), amortisation
of £2.9m (H1 2024: £2.8m) and share-based payment expenses
of £0.2m (H1 2024: £0.4m). Adjusted EBITDA was a profit of £6.0m, up
£0.7m on the first half of the prior year by (H1 2024: £5.3m) despite
short-term set up costs for the two contracts won from a competitor during the
period and broadly flat at constant currency. EBITDA margin increased to 18.9%
when compared to the first half of the prior year (H1 2024: 17.2%).
Depreciation has remained consistent with the first half of the prior year,
while amortisation increased by £0.1m, reflecting our continued investment in
technology.
Profit before tax
As net Finance expenses remained flat at £0.4m (H1 2024: £0.4m), profit
before tax for the period was £1.1m up on the first half of the prior year
(H1 2024: £0.3m).
Regional performance
Segmental Net Revenue reporting reflects our servicing location rather than
the location of our corporate clients. This allows us to understand and track
the efficiency and profitability of our operations around the world.
Net Revenue H1 2025 H1 2024 % change
£m £m
Europe 12.3 12.9 -5%
Americas 12.3 12.5 -1%
AMEA 7.2 5.5 30%
31.8 30.9 3%
After fully allocating our indirect central costs including central costs,
including IT infrastructure, software development, property, senior
management, and other central expenses across the regions, the Adjusted EBITDA
profitability of each regional segment is:
Adjusted EBITDA H1 2025 H1 2024
£m £m
Europe 4.0 4.6
Americas 0.2 0.2
AMEA 1.8 0.6
6.0 5.3
Adjusted EBITDA margin 18.9% 17.2%
EUROPE
Net Revenue in the region decreased by 5% to £12.3m (H1 2024: £12.9m) and 4%
at constant currency. The decrease in Net Revenue of £0.6m is primarily
driven by the loss of a Large contract in the last quarter of FY 2024 that is
no longer in the H1 2025 revenue base. Adjusted EBITDA of £4.0m has also
decreased (H1 2024: £4.6m), primarily as a result of the contract loss.
AMERICAS
Net Revenue in the region of £12.3m decreased by 1% compared to the first
half of the prior year (H1 2024: £12.5m) and increased by 1% at constant
currency, as some clients awaited our enhanced digital roll-out. Adjusted
EBITDA of £0.2m was in line with the first half of the prior year (H1 2024:
£0.2m), with favourable foreign exchange movements offsetting the short-term
set-up costs for the new Extra Large contract which launched in the period.
AMEA
Net Revenue in the region increased by 30% to £7.2m (H1 2024: £5.5m) and 33%
at constant currency and generated an Adjusted EBITDA of £1.8m (H1 2024:
£0.6m). This growth in Net Revenue and profitability has been driven by
strong base business growth, as well as continued operational efficiencies and
cost saving measures across the region.
Cash flow
H1 2025
£m
Profit before tax 1.1
Net finance expense 0.4
Working capital changes (3.7)
Non-cash items (share-based payments, depreciation and amortisation charges, 4.5
exceptional items)
Operating cash flow 2.3
Capital expenditure (0.4)
Investment in intangibles (3.2)
Taxation paid (0.1)
Cash (outflow) (1.4)
Cash flows from financing activities
Receipts from issue of share capital 5.7
Loan repayments (1.5)
Invoice financing facility 0.4
Interest on loan paid (0.2)
Repayment of leases and net interest (1.2)
Net cash from/(used) financing activities 3.2
Foreign currency movements 0.1
Net increase in cash and cash equivalents 1.9
Cash and cash equivalents at end of period 11.2
Net cash at end of period 6.8
Pre-tax operating cash inflows of £2.3m, reflected a profit before tax of
£1.1m, decreased net working capital of £3.7m, and add back of non-cash
items of £4.5m.
Additionally, during the period, there was £3.2m (H1 2024: £3.7m) of capital
investment, in both our global content, our internal CRM platform (Ten MAID)
and the continued development of our digital platform.
All related party loans of £1.5m were repaid during the period, and the
invoice financing facility was £0.5m (H1 2024: £0.9m) at the end of the
period. The secondary placing, working capital changes and repayment of loans
resulted in an increase in cash and cash equivalents of £1.9m to £11.2m (FY
2024: £9.3m).
Balance sheet H1 2025 FY 2024
£'m £'m
Intangible assets 16.6 16.3
Property, plant and equipment 0.8 0.6
Right-of-use assets 7.7 5.5
Deferred tax asset 5.6 5.0
Cash 11.2 9.3
Other current assets 14.0 12.5
Current lease liabilities (1.5) (1.2)
Current liabilities (18.6) (19.8)
Short term borrowings (3.6) (4.4)
Non-current lease liabilities (6.4) (4.4)
Long-term borrowings (0.8) (1.0)
Net assets 25.0 18.4
Share capital/share premium 38.2 32.5
Reserves (13.2) (14.1)
Total equity 25.0 18.4
Net assets increased to £25.0m at 28 February 2025 compared to £18.4m at 31
August 2024. This was primarily due to the proceeds from the secondary placing
at the beginnings of the period and the profit generated during for the
period. Net assets of £25.0m includes gross cash of £11.2m as at 28 February
2025.
Principal Risks and Uncertainties
The principal risks and uncertainties facing the Group remain broadly
consistent with the Principal Risks and Uncertainties reported in Ten's 2024
Annual Report with no new risks or uncertainties being identified in the
period.
Alex Cheatle Alan Donald
Chief Executive Officer Chief Financial Officer
22 April 2025 22 April 2025
Consolidated statement of comprehensive income
Note 6 months to 28 Feb 2025 6 months to 29 Feb 2024
Unaudited Unaudited
£'000 £'000
Revenue 2 34,057 33,266
Cost of sales on principal member transactions (2,285) (2,353)
Net revenue 2 31,772 30,913
Other cost of sales (964) (967)
Gross profit 30,808 29,946
Administrative expenses (29,571) (29,628)
Other income 226 356
Operating profit before amortisation, depreciation, interest, share based 5,999 5,308
payments, exceptional items and taxation ("Adjusted EBITDA")
Depreciation (1,374) (1,429)
Amortisation 3 (2,914) (2,846)
Share-based payment expense (248) (359)
Operating profit 1,463 674
Net finance expense (333) (413)
Profit before taxation 1,130 261
Taxation expense 4 (68) (259)
Profit for the period 1,062 2
Other comprehensive expense:
Foreign currency translation differences (310) (96)
Total comprehensive profit/(loss) for the period 752 (94)
Basic and diluted profit per ordinary share 5 1.1p 0.0p
Diluted profit per ordinary share 1.1p 0.0p
Basic underlying profit / (loss) per ordinary share 0.5p (0.5)p
Diluted underlying profit / (loss) per ordinary share 0.5p (0.5)p
The consolidated statement of comprehensive income has been prepared on the
basis that all operations are continuing operations.
Consolidated statement of financial position
Note 6 months to 28 Feb 2025 31 August 2024
Unaudited Audited
£'000 £'000
Non-current assets
Intangible assets 3 16,648 16,349
Property, plant and equipment 768 636
Right of use assets 7,674 5,489
Deferred tax asset 5,610 4,957
Total non-current assets 30,700 27,431
Current assets
Inventories 286 55
Trade and other receivables 13,584 12,408
Cash and cash equivalents 11,204 9,267
Total current assets 25,074 21,730
Total assets 55,774 49,161
Current liabilities
Trade and other payables (17,966) (19,231)
Provisions (595) (598)
Lease liabilities (1,464) (1,236)
Borrowings 6 (3,584) (4,389)
Total current liabilities (23,609) (25,454)
Net current assets/(liabilities) 1,465 (3,724)
Non-current liabilities
Lease liabilities (6,393) (4,360)
Borrowings 6 (820) (1,011)
Total non-current liabilities (7,213) (5,371)
Total liabilities (30,822) (30,825)
Net assets 24,952 18,336
Equity
Called up share capital 96 87
Share premium account 38,058 32,389
Merger relief reserve 1,993 1,993
Foreign exchange reserve (1,251) (941)
Treasury reserve 606 606
Retained deficit (14,550) (15,798)
Total equity 24,952 18,336
Consolidated statement of changes in equity
Called up share capital Share premium account Merger relief reserve Foreign exchange reserve Treasury Retained deficit Total
reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 September 2023 85 31,272 1,993 (1,111) 606 (17,682) 15,163
Period ended 31 August 2024:
Profit for the year - - - - - 1,022 1,022
Foreign Exchange - - - 170 - - 170
Total comprehensive income for the year - - - 170 - 1,022 1,192
Issue of new share capital 2 1,117 - - - - 1,119
Equity-settled share-based payments charge - - - - - 862
862
Balance at 31 August 2024 (Audited) 87 32,389 1,993 (941) 606 (15,798) 18,336
Profit for the period - - - - - 1,062 1,062
Foreign exchange - - - (310) - - (310)
Total comprehensive income for the period - - - (310) - 1,062 752
Issue of new share capital 9 5,669 - - - - 5,678
Equity-settled share-based payments charge - - - - - 186 186
Balance at 28 February 2025 (Unaudited) 96 38,058 1,993 (1,251) 606 (14,550) 24,952
Condensed consolidated statement of cash flows
6 months to 28 Feb 2025 6 months to 29 Feb 2024
£'000 £'000
Cash flows from operating activities
Profit for the period, after tax 1,062 2
Adjustments for:
Taxation expense 68 259
Net finance expense 314 413
Amortisation of intangible assets 2,914 2,846
Depreciation of property, plant and equipment 255 245
Depreciation of right-of-use asset 1,119 1,184
Equity-settled share based payment expense 248 359
Movement in working capital:
(Increase)/Decrease in inventories (231) 60
(Increase)/Decrease in trade and other receivables (1,176) 552
Decrease in trade and other payables (2,260) (2,605)
Cash generated from operations 2,313 3,315
(119) (525)
Tax paid
Net cash from operating activities 2,194 2,790
Cashflows from investing activities
Purchase of intangible assets (3,213) (3,730)
Purchase of property, plant and equipment (383) (101)
Finance income 20 6
Net cash used by investing activities (3,576) (3,825)
Cash flows from financing activities
Lease Liability repayments (927) (1,276)
Loan receipts - Invoice Discounting 449 641
Interest paid (232) (241)
Interest paid on IFRS16 lease liabilities (251) (108)
Net Cash receipts from issue of share capital 5,678 985
Loan Receipts - Loan Notes 0 1,075
Loan Payments - Loan Notes (1,450) (300)
Net cash generated from financing activities 3,267 776
Foreign currency cash and cash equivalents movements 55 (15)
Net increase/(decrease) in cash and cash equivalents 1,940 (274)
Cash and cash equivalents at beginning of period 9,264 8,229
Cash and cash equivalents at end of period
Cash at bank and in hand 11,204 7,955
Cash and cash equivalents 11,204 7,955
Notes to the Interim Financial Information
1. Basis of preparation
These interim consolidated financial statements have been prepared in
accordance with UK-adopted International Accounting Standards in conformity
with the requirements of the Companies Act 2006. These standards are based on
International Financial Reporting Standards (IFRS) and IFRIC Interpretations
issued by the International Accounting Standards Board (IASB), as adopted for
use in the United Kingdom. They do not include all disclosures that would
otherwise be required in a complete set of financial statements and should be
read in conjunction with the 31 August 2024 Annual Report. The financial
information for the half years ended 28 February 2025 and 29 February 2024
does not constitute statutory accounts within the meaning of Section 434 (3)
of the Companies Act 2006 and both periods are unaudited.
The annual financial statements of Ten Lifestyle Group plc ('the Group') are
prepared in accordance with International standards in conformity with the
requirements of the Companies Act 2006 ('IFRS') and with those parts of the
Companies Act 2006 applicable to companies reporting under IFRS (except as
otherwise stated). The comparative financial information for the year ended 31
August 2024 included within this report does not constitute the full statutory
Annual Report for that period. The statutory Annual Report and Financial
Statements for year ended 31 August 2024 have been filed with the Registrar of
Companies. The Independent Auditors' Report in the Annual Report and Financial
Statements for the year ended 31 August 2024 was unqualified, did not draw
attention to any matters by way of emphasis and did not contain a statement
under 498(2)-(3) of the Companies Act 2006.
The Group has applied the same accounting policies and methods of computation
in its interim consolidated financial statements as in its year ended 31
August 2024 annual financial statements. The Groups tax charge is not
accounted for under the same basis as IAS 34. The tax charge is calculated
using the expected effective tax rate at the reporting date. There are no new
standards effective yet and that would be expected to have a material impact
on the entity in the current period.
Going Concern
The ability of the Group to continue as a going concern is contingent on the
ongoing viability of the Group. The Group meets its day-to-day working capital
requirements through its cash balances and wider working capital management.
As 28 February 2025, the date of the interim consolidated financial
statements, the Group had gross cash of £11.2m. During the period, the Group
raised gross proceeds of £5.9m through the secondary placing of 9,332,853 new
Ordinary Shares at 63 pence per share. The funds raised have and will continue
to support the Group's short-term working capital requirements, as well as
were used in part to repay related party loans outstanding of £1.5m.
To evaluate the Group's ability to operate as a going concern, the Directors
have reviewed the cash flow forecasts covering a period of at least twelve
months from the date of approval of the interim consolidated financial
statements. The Group's forecasts and projections, taking account of
reasonably possible changes in trading performance for the principal risks,
show that the Group expects to be able to operate as a going concern within
the level of its current cash resources.
The Directors have considered severe but plausible scenarios reflecting a
potential reduction in variable revenue of between 20% and 90% as well as the
potential failure to successfully renew contracts in the forecast periods. In
response, the Directors have identified cost savings available to the Group
should these scenarios arise such that the reduction in revenues would be
offset by necessary costs savings. Having assessed these scenarios, the Group
would be able to continue to operate with its existing working capital
facilities.
The Directors have evaluated the Groups ability to operate as a going concern
and has determined that it has adequate resources to continue in operational
existence for the foreseeable future. The Group's cash flow forecasts show
that it expects to be able to operate as a going concern within the level of
its current cash resources. The Group has also identified cost savings
available to it should it experience a reduction in revenue. The Group has
assessed the principal risks and other matters discussed in connection with
the going concern statement and has a reasonable expectation that it has
adequate resources to continue in operational existence for the foreseeable
future.
The Board of Directors approved this interim report on 22 April 2025.
2. Segmental Information
The total revenue for the Group has been derived from its principal activity; the provision of concierge services.
6 months to 28 Feb 2025 6 months to 29 Feb 2024
(Unaudited) (Unaudited)
£'000 £'000
Europe 12,248 12,911
Americas 12,348 12,485
AMEA 7,176 5,517
Net revenue 31,772 30,913
Add back: Cost of sales on principal transactions 2,285 2,353
Revenue 34,057 33,266
Europe 4,062 4,557
Americas 150 188
AMEA 1,787 562
Adjusted EBITDA 5,999 5,308
Amortisation (2,914) (2,846)
Depreciation (1,374) (1,429)
Share-based payment expense (248) (359)
Exceptional Items - -
Operating loss 1,463 674
Other net finance expense (333) (413)
Profit before taxation 1,130 261
Taxation (68) (259)
Profit for the period 1,062 2
Net Revenue is a non-GAAP Company measure that includes the direct cost of
sales relating to member transactions managed by the Group, such as the cost
of airline tickets sold under the Group's ATOL licences. Net Revenue is the
measure of the Group's income on which segmental performance is measured.
Adjusted EBITDA is a non-GAAP Company specific measure excluding interest,
taxation, amortisation, depreciation, share-based payment, and exceptional
costs. Adjusted EBITDA is the main measure of performance used by the CEO, who
is considered to be the chief operating decision maker. Adjusted EBITDA is the
principal operating metric for a segment.
The statement of financial position is not analysed between reporting
segments. Management and the chief operating decision maker consider the
statement of financial position at Group level.
3. Intangible Assets
The Group capitalised £3.2m (H1 2024: £3.7m, FY 2024: £6.73m) of costs
representing the development of Ten's global digital platform and Ten MAID,
resulting in a net book value of £16.6m (H1 2024: £16.3m, FY 2024: £16.3m)
after an amortisation charge of £2.9m (H1 2024: £2.8m, FY 2024: £5.8m).
4. Taxation
The income tax expense has been recognised based on the best estimate of the
weighted average annual effective UK corporation tax rate expected for the
full financial year. The income tax expense of £0.1m (H1 2024: £0.3m)
includes foreign taxes recognised by overseas Group companies on a
territory-by-territory basis using the expected effective tax rate for the
full year. The income tax charge includes historical losses recognised of
£0.6m (H1 2024: £0.5m, FY 2024: £1.7m).
5. Earnings Per Share
6 months to 28 Feb 2025 6 months to 29 Feb 2024
Basic EPS £'000 £'000
Profit attributable to equity shareholders of the parent 1,062 2
Weighted average number of ordinary shares in issue (net of treasury) 95,136,486 85,038,465
Basic profit per share (pence) 1.1p 0.0p
Basic profit per ordinary share
Basic profit per ordinary share is calculated by dividing the net result for
the period attributable to shareholders by the weighted number of ordinary
shares outstanding during the period (H1 2024: 0.0p)
6 months to 28 Feb 2025 6 months to 29 Feb 2024
Diluted EPS £'000 £'000
Profit attributable to equity shareholders of the parent 1,062 2
Weighted average number of ordinary shares in issue (net of treasury) 98,500,406 85,876,479
Basic profit per share (pence) 1.1p 0.0p
Diluted earnings per ordinary share
Diluted earnings per share is calculated as per IAS 33 by adjusting the
weighted average number of ordinary shares outstanding for the dilutive effect
of 'in the money' share options, which are the only dilutive potential common
shares for the Group. The net profit attributable to ordinary shareholders is
divided by the adjusted weighted average number of shares. 'Out of the money'
share options are excluded from the calculation as they are non-dilutive.
Where the Group has incurred a loss in the period, the diluted loss per share
is the same as the basic loss per share as the loss has an anti-dilutive
effect.
6 months to 28 Feb 2025 6 months to 29 Feb 2024
Underlying EPS £'000 £'000
Profit attributable to equity shareholders of the parent 1,062 2
Excluding Exceptional Items & Taxes
Exceptional Items 0 -
Recognition of historical tax losses (591) (461)
Underlying profit/(loss) attributable to equity shareholders of the parent 471 (459)
Basic weighted average number of ordinary shares in issue (net of treasury) 95,136,486 85,038,465
Basic underlying profit/(loss) per share (pence) 0.5p (0.5)p
Diluted weighted average number of ordinary shares in issue (net of treasury) 98,500,406 85,038,465
Diluted underlying profit/(loss) per share (pence) 0.5p (0.5)p
Underlying earnings per ordinary share
Underlying earnings per share is calculated by adjusting the profit/(loss)
attributable to equity shareholders for exceptional items and associated taxes
along with non-underlying tax items such as deferred tax arising from the
recognition of historical losses. No changes are made to the weighted average
number of ordinary shares.
6. Borrowings
The Group has £4.4m of loans (FY 2024: £5.4m), which includes the invoice
financing facilities of £0.5m (H1 2024: £0.8m) in place relating to trade
receivables due from large corporate clients of Ten Lifestyle Management Ltd
that are denominated in USD$ and GBP£. The invoice financing facility is
guaranteed to the value of the debts advanced and accrues interest at a rate
of 2% over the base rate.
During the period, the Group repaid all related party loans outstanding of
£1.45m, with remaining balances outstanding of £3.1m and £0.8m of loan
notes, payable in August 2025 and November 2026 respectively.
7. Post-period events
The Company has evaluated subsequent events through the date of issuance of
these financial statements, and determined that there were no significant
events that occurred after the balance sheet date that would require
disclosure.
8. Cautionary Statement
This document contains certain forward-looking statements relating to Ten
Lifestyle Group plc. The Company considers any statements that are not
historical facts as "forward-looking statements". They relate to events and
trends that are subject to risk and uncertainty that may cause actual results
and the financial performance of the Company to differ materially from those
contained in any forward-looking statement. These statements are made by the
Directors in good faith based on information available to them and such
statements should be treated with caution due to the inherent uncertainties,
including both economic and business risk factors, underlying any such
forward-looking information.
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