REG - Ten Lifestyle Group - Preliminary Results 2021
24/11/2021 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20211124:nRSX3507Ta&default-theme=true
RNS Number : 3507T Ten Lifestyle Group PLC 24 November 2021
Embargoed: 07:00hrs 24 November 2021
Ten Lifestyle Group plc
("Ten", the "Company" or the "Group")
Preliminary results for the year ended 31 August 2021
Ten Lifestyle Group plc (AIM: TENG a leading technology-enabled, global
concierge platform for the world's wealthy and mass affluent, announces its
preliminary results for the year ended 31 August 2021.
Financial
· Net Revenue(1) decreased 21.6% to £34.7m (2020: £44.2m) due to
impact of COVID-19 on member activity and travel, mitigated by augmenting core
services with relevant support services
o Corporate revenue decreased by 22% to £31.9m (2020: £40.9m)
o Supplier revenue decreased by 15.2% to £2.8m (2020: £3.3m)
· Adjusted EBITDA(2) of £4.4m (2020 £4.8m); improved adjusted
EBITDA margin(3) of 12.8% (2020: 10.8%)
o Improved efficiencies and prudent cost reduction actions
o Maintained high level of investment in technology of £11.5m (2020:
£12.2m)
· Reduced loss before tax of £(5.5)m (2020: £(5.9)m)
· Net cash at £6.7m (2020: £10.0m)
· Improved efficiencies (and government support) helped achieve
£9.2m reduction in total operating expenses from £39.4m in 2020 to £30.3m
in 2021
Operational
· Year-on-year record member satisfaction(4) which drives repeat
use and value to our corporate clients
· Retained all Material Contracts(5) in the period, although a
Large EMEA contract transitioned from a Large corporate to a Small affiliate
contract
o Launched a Medium contract with Westpac in Australia in September 2020
o Won a Large contract with Credit Saison in Japan, launched in September
2021
· Eligible Member(6) base grew as a result of expansion of existing
and addition of new corporate client programmes
· Active Members(7) fell by only 6% to 210k (2020: 229k) despite
the impact of the pandemic, due to Ten adapting the member proposition and
improving communications to engage members
· Continued digital development has driven business success
o Ten Digital Platform live with 27 client brands (2020: 22) which drives
engagement and service quality
o £11.5m (2020: £12.2m) invested in proprietary digital platforms,
communications and technologies to enhance member experience and create
competitive advantage
o Improved efficiencies and proposition from greater digital capabilities,
operational maturity and stronger supplier partnerships mean over 70% of
requests are now serviced using automation (2020: 63%)
Current Trading and Outlook
As the effects of COVID-19 ease globally, we expect that demand for our core
services will recover and increase both from existing Active Members and from
new "first time users" from our growing Eligible Member base, which will
result in increased Net Revenue from our corporate accounts. In addition, some
of our pandemic innovations will continue as important parts of our offering
and create revenue. Since the year end, demand has increased and overall
performance is in line with the Board's expectations.
Supplier revenue (largely generated by hotel bookings), which in pre-COVID)
FY2019 amounted to £5.5m of Net Revenue, is increasing as travel recovers. We
believe this will continue to improve in FY2022 as COVID-19 continues to ease
and travel returns. In the final quarter of FY2021, we saw travel bookings
return to the pre-COVID-19 levels of FY2019 and in the first two months of the
current financial year supplier revenue is running ahead of the same pre-COVID
period. It is not yet certain if the level of activity will sustain throughout
the year.
We expect the Group will benefit from the full year impact of new contract
wins and extensions in 2021, which will increase the number of Eligible
Members, Active Members and as a result, corporate revenue. We expect to
increase revenue from existing clients as well as to continue to convert our
strong pipeline of opportunities, helped by our proven ability to support
clients to engage, retain and acquire their most valuable customers, and the
increasing willingness of clients to commit to new initiatives.
We remain focused on continuing to increase Net Revenue and Adjusted EBITDA,
maintaining a positive cash position whilst scaling up operations and
maintaining our strategic investment in technology. As we await full recovery
from the effects of COVID-19, we expect some reduction in net cash in the
first half of the year.
There are encouraging signs of recovery, albeit we are still experiencing some
COVID-19 headwinds in some markets. Our high contract retention, record
service levels, increasing supplier revenue, improving margins, healthy sales
pipeline and continued investment to improve our technology and proposition,
mean that the Board is optimistic that the Group will take further steps on
our mission to becoming the most trusted service platform in the world.
Alex Cheatle, CEO of Ten Lifestyle Group, said;
"We have built a stronger business during the pandemic and delivered an
improved Adjusted EBITDA margin, 100% client retention, record levels of
Eligible Members and record service levels. We are now seeing demand and
revenue starting to increase, which we expect will drive the Ten growth engine
into 2022, taking further steps on our mission to become the most trusted
service platform in the world."
(1 )Net Revenue excludes the direct cost of sales relating to certain member
transactions managed by the Group.
2 Adjusted EBITDA is operating profit/(loss) before interest, taxation,
amortisation, depreciation, share-based payment expense and exceptional items.
(3) Adjusted EBITDA margin is Adjusted EBITDA as a percentage of Net Revenue.
(4) Ten measures member satisfaction using the Net Promoter Score management
tool, which gauges the loyalty of a firm's customer relationships
(https://en.wikipedia.org/wiki/Net_Promoter).
(5) 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.
Medium, Large and Extra Large contracts are collectively "Material Contracts".
(6 )Eligible members are individuals who have an eligible product, employment,
account or card offered by one of Ten's corporate partners and have legitimate
access to the service.
(7 )Active Members are members of Ten that have used the service at least once
in the past twelve months.
Analyst Presentation
An online analyst presentation will be held by video link at 9:00am on 24
November 2021. To attend, please email investorrelations@tengroup.com
(mailto:investorrelations@tengroup.com)
Dial-in details for the presentation are also available:
Dial-in number: +44 208 080 6592
Meeting ID: 893 8310 8943
Investor Presentation
The Group will also be presenting an Investor Presentation, open to all
existing and potential shareholders via the Investor Meet Company platform on
30 November 2021 at 5:30pm GMT. Investors can sign up to Investor Meet
Company for free and "add to meet" Ten Lifestyle Group plc via:
https://www.investormeetcompany.com/ten-lifestyle-group-plc/register-investor
(https://www.investormeetcompany.com/ten-lifestyle-group-plc/register-investor)
Investors who already follow Ten Lifestyle Group plc on the Investor Meet
Company platform will automatically be invited.
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
Peel Hunt LLP, Nominated Advisor and Broker +44 (0) 20 7418 8900
Edward Knight
Paul Gillam
James Smith
Notes to Editors:
About Ten Lifestyle Group Plc
Ten Lifestyle Group Plc (http://www.tenlifestylegroup.com/) is a leading
technology-enabled, global concierge platform, helping wealthy and mass
affluent individuals and their families to discover, organise, and enjoy
dining, live entertainment, travel and premium retail (and other relevant
services) with better results and more quickly than they could themselves.
Many of the world's leading brands pay Ten to support their most valued
customers.
Underpinned by industry-first technology, Ten provides its trusted concierge
services to millions of members, in over 15 languages, 24/7, 365 days a year,
wherever they are in the world. Founded in 1998, the business listed on the
AIM market of the London Stock Exchange in November 2017 (AIM: TENG).
The growth engine at the heart of Ten's business model is the driving force
behind its progress towards its objective to become the most trusted service
platform in the world.
For further information about Ten Lifestyle Group Plc, please go
to: www.tenlifestylegroup.com (http://www.tenlifestylegroup.com/)
Chairman's Statement
Overview
I am pleased to present our annual results for the year ended 31 August 2021,
which sets out the Group's progress towards becoming the world's most trusted
service by using expertise and a digital engagement platform to create unique
experiences for our members, which generates brand loyalty for our clients and
revenue for Ten.
It would be easy to underestimate the effects the COVID-19 pandemic has had on
our business over the last twelve months and is indeed still having on our
business. However, it is remarkable how the business has responded to the
challenges, developed its offerings, continued to invest in technology and
maintained member and client focus.
In this difficult environment, the Group maintained Adjusted EBITDA
profitability and ends the year with net cash. Net Revenue was impacted by the
effects of the COVID-19 pandemic throughout the year. Adjusted EBITDA Margin
improved due to the resilience and flexibility of our team, our
technology-enabled service proposition and the strength of the underlying
business model. This enabled us to tailor existing offerings and develop new
services to meet the needs of our members during the pandemic and enhance
their loyalty to our corporate clients.
Our technology also underpins the Group's competitive position as a leading
digitally enabled, global lifestyle and travel service platform for
individuals and their families. Continued investment into technology,
strategic partnerships and our people has enabled the Group to build healthy
foundations for growth through an improved service and client proposition
whilst also achieving further efficiencies.
Strategy
The Group remains committed to its mission to become the world's most trusted
service. Our stated purpose is to allow valued members to organise their
travel, dining, entertainment and other lifestyle needs by optimising our
market-leading proprietary platform, together with our unique access, our
buying power and our expert Lifestyle Managers. This in turn helps build the
value and the loyalty of the customers to our corporate clients, who enable
them to use our service. With offices with Lifestyle Managers in over 20
cities globally, we can help improve our members' lives wherever they are, in
business or in leisure, in over 15 languages, 24 hours a day. High Net
Promotor Scores (NPSs) evidence that our services are appreciated by our
members and drive value for our corporate clients.
To achieve this, the Group utilises the Ten growth engine at the heart of our
business model by building an ever-stronger member proposition, resulting in
investment from corporate clients who in turn are seeking to improve the
profitability and loyalty of their most valuable customers. Income from
corporate clients is invested back into technology, content and service
quality, building member proposition and further driving the growth engine.
The Group continues to benefit from strong partnerships with corporate
clients, primarily in the financial services sector, seeking to improve the
engagement, retention and acquisition of their most valuable customers by
offering access to our technology-enabled travel and lifestyle services. The
Group also offers individuals the opportunity to access its services through a
private membership proposition, although this is a far smaller part of our
total business.
Ten offers its members access to a wide range of propositions across key
consumer markets, including dining, travel, entertainment and premium retail.
By combining the buying power of its membership, the Group helps members
secure attractive, and often unique, access, service levels, offers and
benefits, meaning they can achieve better and more cost-effective outcomes,
more conveniently than they could on their own.
These services are all made available to members to search and book online
though Ten's market-leading lifestyle and travel proprietary digital platform,
the "Ten Digital Platform", or from our expert Lifestyle Managers by phone,
email, live chat and WhatsApp.
Results
The Group's ongoing focus on efficiencies has contributed to an improved
Adjusted EBITDA margin of 12.8% (2020: 10.8%), resulting in Adjusted EBITDA
profitability for a second consecutive year with Adjusted EBITDA of £4.4m
(2020: £4.8m) and a net cash position of £6.7m (2020: £10.0m). A decline in
Net Revenue, largely because of the pandemic (2021: £34.7m; 2020: £44.2m),
led to the small reduction in Adjusted EBITDA. The improved efficiencies were
backed by prudent cash management, including the implementation of a Salary
Sacrifice Scheme.
Adjusted EBITDA profitability and maintaining a net cash position, whilst
continuing to invest in technology, are key performance indicators of the
Group's strategic growth engine.
Net Revenue declined by 21.6% in the year to £34.7m (2020: £44.2m), caused
by COVID-19 and the resulting public health actions throughout the year
reducing member activity and revenue from corporate clients paying for their
customers' use of the service. Lower rates of member travel bookings also
caused supplier revenue to be down 45% on pre-COVID-19 levels(8).
The Board believes that the decline in Net Revenue caused by COVID-19 was less
than may have been expected at the beginning of the crisis from a business
that, pre-pandemic, had travel, eating out and live entertainment as its core
service categories. The Group's agile response to our members' changing needs
has allowed the service proposition to remain relevant to our members and
corporate clients, partly mitigating the effects on our relevant markets.
In a challenging commercial environment, the Group secured new contract wins
during the year, including a Large contract with Credit Saison, a leading
credit card issuer in APAC, which launched in September 2021, a Medium
contract with a wealth management business in EMEA and a Medium contract with
Westpac Banking Corporation in Australia, which launched in September 2020.
The Group also benefited from multi-year contract extensions and significant
expansions of contracts with our existing corporate clients, including a
significant new mandate with an existing client in EMEA, expanding the Extra
Large contract with the addition of a premium, high-engagement programme. I am
delighted that we have retained all Material Contracts in all markets,
although one Large contract in EMEA transitioned from a Large corporate to a
Small affiliate contract model. Both the new contracts won and launched in the
period and growth of existing mandates have resulted in a record number of
Eligible Members which bodes well for a return to growth with returning
consumer activity.
Both growth from new contract wins and the development of existing corporate
programmes were held back in the year due to wider economic uncertainty and
the continued impact of the pandemic on consumer behaviour. Nonetheless, by
investing in technology and content during the year, we have maintained a
strong sales pipeline. We believe that we remain differentiated from our
competitors and during the year continued to invest in our proven ability to
help clients engage, retain and acquire their most valuable customers.
The digital transformation of the service since IPO accelerated during the
year, with over 70% of requests now serviced using automation and a 74%
increase in the number of fully automated requests. Increased automation
drives the speed and efficiency of our service, which contributes to increased
cash generation and the improved Adjusted EBITDA margin of 12.8% (2020:
10.8%). This was achieved whilst improving the quality of the service,
reflected in the record levels of member satisfaction in all regions.
People
The Group continues to benefit from a stable, founder-led executive management
team which has shown strong leadership, innovation and resilience in all
regions to overcome the challenges faced since the start of the pandemic. We
continued to develop our people including graduating 26 employees from eight
countries through Ten's Global Leadership Programme, a twelve months' internal
development programme aimed at developing the Group's future leaders.
The Group reduced its levels of full-time equivalent (FTE) employees for the
second consecutive year, in response to regional growth rates, improved
efficiencies and regional cost optimisation.
On behalf of the Board I would like to thank the whole Ten team for
demonstrating adaptability, professionalism and steadfast commitment
throughout the year, for which we are extremely grateful and proud.
Summary
In last year's Annual Report, Alex Cheatle, CEO, stated: "Despite generating
less Net Revenue, we are cautiously optimistic that we can maintain healthy
EBITDA profitability by continuing to deliver efficiencies and cost savings,
whilst maintaining decent levels of investment into our technology."
I am very pleased to report that the Group has delivered on this statement,
despite the effects of the pandemic throughout the financial year, by
continuing to invest in technology and content to improve the member
proposition whilst maintaining a positive net cash position as well as
improving margin percentage. Restrictions on consumer activity globally did,
however, cause a decline in Net Revenue.
We remain confident in the strength of our relationships with our existing
clients because we have proven our value in helping corporate clients engage,
retain and acquire their most valuable customers. This bodes well for the
future as we emerge from the pandemic with a healthy business, strong service
levels, improved technology and an opportunity for our growth engine to prove
itself further with sustained increases in Net Revenue and profitability.
Bruce Weatherill
Chairman
23 November 2021
(8) Ten's revenue from its supplier base, such as hotels, airlines and event
promoters which sometimes pay commission to Ten, constituted 9% of Net Revenue
in 2021, 7% of Net Revenue for the 2020 financial year (as reported in the
2020 Annual Report and Accounts) and 12% of Net Revenue in 2019 (pre-COVID-19)
(as reported in the 2019 Annual Report and Accounts).
Chief Executive's statement
Overview
Our business has continued to prove itself, remaining healthy with an Adjusted
EBITDA of £4.4m (2020: £4.8m), despite the effects of COVID-19, which caused
Net Revenue to decline to £34.7m (2020: £44.2m).
The success of the "growth engine" that lies at the heart of our business has
created efficiencies that have allowed us to continue to invest into our
technology and to improve our proposition to both members and our corporate
clients. After that investment, we increased our Adjusted EBITDA percentage
margin to 12.8% (2020: 10.8%), through a mixture of cost management,
government funded COVID-19 receipts and improving efficiencies,
notwithstanding the impact of the pandemic on Net Revenue.
We have continued our strategy of investing in technology, content and
supplier partnerships to improve our member proposition. During the pandemic,
we have expanded our service to include virtual events, home delivery
management and staycations. These services have not fully compensated for the
effective freeze on international travel in some markets and the general
reduction in social activity globally but have helped mitigate the impact on
the business - and will remain important to our service in future years too.
Member activity was down in the year, following the trend of consumer activity
in our core service categories globally, due to COVID-19. The majority of our
Net Revenue comes from service or subscription fees, paid by our corporate
clients or private members. In contrast, almost all other providers of similar
services (e.g. travel agents or ticket portals) rely on commission or mark-ups
on bookings. This advantage allowed us to continue to provide market-leading
value and service to our members. Unlike much of the travel industry in the UK
and internationally, we did not issue any Refund Credit Notes to members and
returned all cash to members when bookings were cancelled due to the
pandemic. This has helped build loyalty and trust.
Towards the end of the period and since the period end, we saw member activity
increase as restrictions eased in most regions, particularly in travel, dining
and live events. Commissions from our travel bookings in the final quarter of
FY2021 rose 28% when compared with the same pre-COVID-19 period in 2019.
Increased member activity improves revenue from corporate clients and
suppliers, which has a positive effect on efficiencies and service quality.
We have achieved record levels of satisfaction with our members, for the
fourth year in a row since IPO, and we continue to prove our value to our
corporate clients at a time when traditional customer benefits have proven
less relevant and flexible during the pandemic (e.g. airport lounge access,
travel insurance and physical hospitality events).
I am extremely proud of our committed people, across over 20 cities globally,
who have continued to deliver high-quality services to our members and
corporate clients in a challenging environment.
REGIONAL ANALYSIS
We continued to operate in all existing markets from over 20 cities globally
in the year and we have improved our Adjusted EBITDA margin in APAC and the
Americas as our business there has matured.
We retained all Material Contracts globally, although one Large contract in
EMEA transitioned from a Large corporate to a Small affiliate contract model.
EMEA
In EMEA we successfully maintained the relevance of our service to our members
and corporate clients, achieving record levels of member satisfaction in the
region.
Regional Net Revenue declined by 18% as a result of a full year of the effects
of the pandemic being felt in the region and the replacement of a Large
corporate-pay model contract with a Small affiliate model contract in
September 2020. We did not lose any Material Contracts, won a Medium
contract with a wealth management business and extended as well as expanded
some key contracts with corporate clients in the region.
The overall decline in Net Revenue to £18.1m (2020: £22m) was caused by
corporate revenue reduction, due to reduced overall levels of member activity
as well as a significant decline in supplier revenue, caused by lower travel
commissions across the region.
We continued to make prudent cost saving actions across the region in the
year, including office costs and headcount reductions, and we participated in
a limited number of the available government funded COVID-19 initiatives.
These actions, along with the continued improvements in operational
efficiencies, limited the decline in Adjusted EBITDA margin to 34% in 2021
(2020: 37%).
Americas
A full year of the pandemic resulted in a decline of 28% in regional Net
Revenue to £9.9m (2020: £13.8m) due to a decline in member activity. Further
decline was mitigated through successfully replacing core service activities
with other support services relevant to members during COVID-19 measures. This
resulted in record levels of member satisfaction in the region.
We retained all Material Contracts in the region and expanded some mandates,
supported by the opening of a new office in Denver towards the end of the
year.
Although Net Revenue declined, we reduced our Adjusted EBITDA losses, to
£2.2m (2020: £3.9m). This was achieved through improved efficiency and
various cost saving measures including the US Payroll Protection Program (US
PPP) loan forgiveness of £1.0m which is reported in other income.
APAC
Our business in APAC has shown tremendous resilience during a full year of
tough COVID-19 restrictions, achieving record levels of member satisfaction in
the region. We retained all Material Contracts and won a Large contract with
Credit Saison, a leading credit card issuer in Japan.
There has been very little international travel and few large live events, and
national lockdowns have reduced demand for our dining services. However, our
teams adapted well to the changing local restrictions and offered relevant
services to our members. This mitigated the decline in Net Revenue to £6.7m
(2020: £8.5m). Net Revenue also benefited from the launch in September 2020
of a multi-year contract with Westpac Banking Corporation, which now delivers
Ten's concierge services to premium credit card customers primarily from our
Melbourne office and includes access to the customised Ten Platform.
Although the effects of COVID-19 dampened the activity of existing client
contracts in the region, we improved operational efficiencies, primarily
driven by our continued digital transformation, as well as significant cost
saving measures and our participation in relevant government funded COVID-19
initiatives. This resulted in a small increase in Adjusted EBITDA to £0.5m
(2020: £0.4m).
Our investment in technology and content continues to drive our market-leading
digital capability
We continued to invest in the quality, operational and competitive advantages
that result from our digital capability. We invested £11.5m into
technology, communications and content (2020: £12.2m) in the year and a total
of £46.4m since IPO.
We believe that this clearly differentiates us from our competitors, and that
our market-leading digital capabilities are at the core of the Group's health.
Technology underpins our long-term "growth engine" strategy to become the
world's most trusted service.
In the year, we delivered key milestones in our digital transformation.
Stronger member proposition, satisfaction and engagement
Building a valued service and strong member proposition is the key objective
of the growth engine that underpins the business model as it delivers member
engagement, which is a key objective for our corporate clients, who invest in
our service to acquire, engage and retain their most valued customers.
In the year we have strengthened our core propositions.
The more attractive and accessible our proposition is to new and existing
members, the more members engage, use and advocate for our service. Member
engagement and satisfaction is the key to building value for corporate
partners, looking to improve the engagement, retention and acquisition of
their most valued customers. This justified their spending more with us - and
encourages new corporate partners and new suppliers to work with us.
We are delighted to have achieved another year-on-year record level of member
satisfaction, as measured by Net Promoter Score (NPS).
We believe that our strengthened member proposition and member satisfaction
levels have resulted in an increase in repeat usage of our service and
sustained levels of Active Members using the service. Strong member
satisfaction levels also help us demonstrate the return on corporate client
investment into the service, which contributes to the high levels of corporate
client retention.
Summary
Our service is well positioned to add new contracts and grow existing
contracts. We have maintained all our Material Contracts in the year and
launched two new Material Contracts. This provides a strong platform for
growth as demand for our services increases.
We believe our competitive position is stronger than ever, backed by a
market-leading member proposition, which delivers a strong return on
investment from our corporate clients. This has been achieved by continuing to
invest in our technology, content and market expertise and better pricing,
access, benefits and integration with our supplier partners.
Although the effects of COVID-19 have constrained some of our prospective
clients from signing contracts, our pipeline is robust, and we have secured
some important new mandates and contract extensions. We have maintained our
record of never having lost a material corporate client where we have launched
our Ten Digital Platform. By developing the relevance of our service to our
members, and in turn our corporate clients, we have limited Net Revenue
reduction from corporate clients to 22% during the year and retained all our
Material Contracts in the year. That said, it is important that we recognise
that the effects of COVID-19 have had an impact upon the length of time it
takes to convert our pipeline. Whilst the "pitch process" has been taking
longer, we have a healthy pipeline of prospective clients.
Despite prudent cost controls we have maintained investments in technology,
content and supplier partnerships, which has enhanced the service to clients.
This was a deliberate strategy taken by management as we recognise the
importance of continued innovation in building our market position and
improving service levels. The greater efficiencies that result, along with
careful cash management, have helped us to maintain a net cash position of
£6.7m (2020: £10.0m) and Adjusted EBITDA of £4.6m (2020: £4.8m).
Our record service levels, strong technology platform, EBITDA profitability
and strong contract pipeline all combine to create confidence in a strong
future for our business.
The strong "trusted expert" culture at Ten, member focus and commitment to
innovation continues to make me proud. These values have been especially
evident during this year of challenge. We have taken the opportunity during
this period to strengthen our operational effectiveness, nurture our corporate
clients and have communicated our longer-term strategic plans and ambitious
vision to continue to keep our people focused.
Alex Cheatle
Group Chief Executive Officer
23 November 2021
Financial review
We continued to experience challenging conditions as the impact of the
pandemic during the year reduced our Net Revenue by 21.6% to £34.7m (2020:
£44.2m). However, continued cost actions and operational efficiencies ensured
we again achieved Adjusted EBITDA profitability of £4.4m (2020: £4.8m) with
an improved Adjusted EBITDA margin of 12.8% (2020: 10.8%).
£m 2021 2020
£m £m
Revenue 35.1 46.4
Net Revenue 34.7 44.2
Operating expenses and other income (30.3) (39.4)
Adjusted EBITDA 4.4 4.8
Adjusted EBITDA % 12.8% 10.8%
Depreciation (3.2) (4.4)
Amortisation (4.0) (3.4)
Share-based payments expense (1.6) (1.5)
Exceptional items (0.6) (0.4)
Operating loss before interest and tax (5.0) (4.9)
Net finance (expense) (0.5) (1.0)
Loss before taxation (5.5) (5.9)
Taxation (0.2) (1.0)
Loss for the period (5.7) (6.9)
Net cash 6.7 10.0
Adjusted EBITDA
Whilst Adjusted EBITDA is not a statutory measure, the Board believes it is
appropriate to include this as an additional metric as it is one of the main
measures of performance used by the Board. It reflects the underlying
profitability of our business operations, excluding amortisation of investment
in platform infrastructures, exceptional charges and share-based payment
expenses.
Revenue and Net Revenue
Net Revenue(9) for the twelve months to 31 August 2021 was £34.7m, down 21.6%
compared to the prior year. Revenue for the twelve months to 31 August 2021
was £35.1m, down 24.4% on the twelve months to 31 August 2020. Net Revenue,
which excludes the direct cost of sales relating to member transactions
managed by the Group, is Ten's preferred measure of operating revenue as it
excludes the cost of member transactions where Ten is the principal service
provider (i.e., cost of airline tickets packaged with hotels under the Group's
ATOL licences).
The reduction in Net Revenue of 21.6% was principally due to the impact of the
COVID-19 pandemic. Whilst we continued to remain relevant to our clients and
members throughout the year by continuing to offer relevant services including
virtual events and home delivery management, this did not fully compensate for
lower activity across our main service categories of travel, dining and
entertainment due to the various lockdown measures instigated across all
regions.
Our corporate revenue (paid by our corporate clients to service their
customers) decreased year on year by 22%, whilst our supplier revenue
(predominantly travel related) reduced by 15.2% against prior year and by
49.8% against FY 2019 (pre-COVID-19). Note, some of our corporate contracts
have a guaranteed minimum which helped support the activities we provided
throughout the year. The lower reduction in supplier revenue was due to travel
activity starting to pick up in the last quarter of the year as travel
restrictions eased across many countries. The table below sets out analysis of
H1 and H2 and demonstrates the recovery in supplier revenue from H2 2020
onwards (note: H1 2020 is prior to the impact of the pandemic).
H1 2020 (unaudited) H2 2020 (unaudited) FY 2020 H1 2021 (unaudited) H2 2021 (unaudited) FY 2021
Supplier revenue £2.5m £0.8m £3.3m £0.9m £1.9m £2.8m
Percentage of Net revenue 10.7% 3.4% 7.4% 5.1% 10.8% 8%
(9)Net Revenue excludes the direct cost of sales relating to certain member
transactions managed by the Group.
Contract analysis
The following tables set out an analysis of our contracts by size and by
region. We have analysed only our Material Contracts. Note, the contract size
is 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. This does
not include the revenue generated from suppliers through the provision of
these concierge services
Contract by Size 2021 2020 change
Extra Large 3 3 -
Large 5 6 -1
Medium 16 14 +2
24 23 +1
Contract by region 2021 2020 change
EMEA 8 8 -
Americas 10 10 -
APAC 5 4 +1
Global 1 1 -
24 23 +1
During the year we won and launched two Medium contracts, one Large contract
transitioned from a Large corporate to a Small affiliate contract model. We
also won a Large contract, which launched in September 2021, after year end
(and so is not included in the tables above), whereby Ten took over from an
existing in-house concierge service and external travel service provider. This
is an example of a contract with an existing "run rate" meaning corporate
revenue ramps-up more quickly than a contract for the launch of an entirely
new service.
Regional analysis
While there is a clear overlap between the geographic location of our clients
and their members' requests, members use our concierge services across all the
regions. Net Revenue by region reflects our servicing location rather than the
location of our corporate clients. This allows us to track the efficiency and
profitability of our operations around the world and is therefore presented on
this basis.
Net Revenue 2021 2020 % change
£m £m
EMEA 18.1 22.0 -18%
Americas 9.9 13.8 -28%
APAC 6.7 8.5 -21%
34.7 44.2 -21.6%
In EMEA Net Revenue decreased by 18% due primarily to the pandemic impacting
both corporate and supplier revenue. In addition, as previously reported we
lost a Large contract which transitioned from a corporate to an affiliate
contract model from September 2020, and partially offsetting this loss, won a
Medium contract during the year. Supplier revenue started to recover in the
last quarter of the year as travel restrictions were gradually lifted in the
region.
In the Americas, Net Revenue reduced by 28% and in APAC Net Revenue reduced by
21% again due to the impact of the pandemic on both concierge revenue and
supplier commissions in the regions. A Medium contract was won and launched in
APAC during the year.
Operating expenses and other income
Operating expenses and other income reduced by £9.1m to £30.3m (2020:
£39.4m).
As our business model has developed, we benefited from cost reduction
actions which helped offset the impact of the pandemic. These actions
included, but are not limited to:
· ongoing improvements in operational efficiency due to more
developed technology and content and a more mature supplier base;
· successful renegotiation with suppliers where operationally it
made sense;
· a review of projects to focus on the most strategic core
investments (including development of our core technology platform, where we
continue to invest);
· a freeze on employee bonuses and salary increases together with
some redundancies;
· voluntary Salary Sacrifice Scheme in exchange for share options
(£1.2m (2019: £0.9m);
· use of various countries', COVID-19 government support schemes (e.g.
furlough and Kurzarbeit) which totalled £2m (2020: £1.6m); and
· US Payroll Protection Program (US PPP) loan of £1m fully
forgiven in the second half of the year.
Average headcount in the year has decreased to 824 (2020: 970), due to actions
taken to manage our cost base as a result of the reduced activity in the year.
Note, all Group property leases are short to medium term or have appropriate
break clauses incorporated, allowing flexibility when assessing space
requirements across the world, especially in the current and future working
environment.
Regional Adjusted EBITDA
Adjusted EBITDA is after expenses, other than deprecation of £3.2m (2020:
£4.4m), amortisation of £4.0m (2020: £3.4m), and share-based payment and
exceptional items expenses of £2.2m (2020: £1.9m). On this basis, Adjusted
EBITDA was £4.4m (2020: £4.8m).
After allocating the costs of central IT infrastructure, software development,
property, senior management and other central costs, the Adjusted EBITDA for
each region is set out below:
Adjusted EBITDA 2021 2020
£m £m
EMEA 6.1 8.2
Americas (2.2) (3.9)
APAC 0.5 0.4
Total 4.4 4.8
Adjusted EBITDA % 12.8% 10.8%
EMEA
Adjusted EBITDA of £6.1m (2020: £8.2m) is a reduction year on year of
£2.1m. However, Adjusted EBITDA margin, defined as Adjusted EBITDA as a
percentage of Net Revenue, only decreased by 3.5% to 33.8% as a result of
operational efficiencies and the various cost actions taken.
Americas
The Americas region Adjusted EBITDA loss has decreased by £1.7m to £(2.2)m
(2020: £(3.9)m). This improvement is despite lower Net Revenue and is
principally driven by cost actions and operational efficiencies implemented
including full forgiveness of the US PPP loan of £1m taken out in the prior
year which was used to pay for predominantly salary costs through the period.
APAC
The APAC region Adjusted EBITDA of £0.5m (2020: £0.4m) has improved in the
year by £0.1m. The improved performance has also been driven by operational
efficiencies as well as cost saving measures.
Amortisation
Amortisation costs, relating to the internal platform (TenMAID) and the
customer-facing platforms, were £4.0m in 2021 (2020: £3.4m) reflecting
continued investment in technology to drive improvements in service levels,
efficiency and competitive advantage.
Net finance (expense)/income
Net finance expense in the year was £0.5m (2020: £1.0m); the expense
included IFRS 16 lease interest expense of £0.4m as well as foreign exchange
losses on the translation of inter-company balances in the year.
Share-based payments
The share-based payments expense in the year was £1.6m (2020: £1.5m). These
related to share-based payments expense reflecting share grants made under
management incentive plans and also three salary sacrifice share option
schemes implemented during the year (see note 27).
Exceptional items expense
The exceptional items expense of £0.6m (2020: £0.4m) was an impairment
expense following a review of a database previously capitalised of £0.4m
where a specific portion of this was less likely to generate future economic
benefits due to the fall-out from the COVID-19 pandemic. In addition, there
were some exceptional project costs incurred during the year of £0.2m.
Loss before tax
The loss before tax improved to £(5.5)m from £(5.9)m in 2020.
Taxation
The taxation expense for the year was £0.2m (2020: £1.0m) which related to
tax liabilities and payments due to overseas entities recording a statutory
profit.
Loss per share
The total comprehensive loss for the year was £(5.8)m (2020: £(6.9)m),
resulting in a loss per share (excluding treasury shares) of 7.2p (2020: loss
per share of 8.6p). The Board does not recommend the payment of a dividend.
Group cash flow
£m 2021 2020
£m £m
Loss before tax (5.5) (5.9)
Net finance expense 0.5 0.5
Working capital changes 0.7 2.9
Non-cash items (share-based payments, depreciation and amortisation charges) 8.3 9.7
Operating cash flow 4.0 7.2
Capital expenditure (0.2) (0.2)
Investment in intangibles (5.4) (5.3)
Taxation (0.5) (0.2)
Cash (outflow)/inflow (2.1) 1.5
Cash flows from financing activities
Receipts on exercise of options 0.9 -
Loan receipts - 1.0
Repayment of leases and net interest (2.9) (3.6)
Net cash used by financing activities (2.0) (2.6)
Foreign currency movements (0.2) (0.3)
Net decrease in cash and cash equivalents (4.3) (1.4)
Cash and cash equivalents 6.7 11.0
Cash generated by operations was £4.0m (2020: £7.2m). The cash generated in
the year has been achieved by continuing operational efficiencies and cost
saving actions taken across the business. Non-cash items in the year of £8.3m
included the increased amortisation charges, offset by the US PP loan
forgiveness and a reduction in depreciation charge relating to IFRS 16
Right-of-Use assets as we downsized or terminated property leases across the
Group. The expenditure that was capitalised on IT infrastructure, the Ten
Digital Platform and TenMAID totalled £5.4m as we continue to invest in our
technology. Cash inflow of £0.9m was generated from share options exercised
by employees. Net cash used in financing activities is primarily due to IFRS
16 lease payments and interest of £2.9m. This has led to an overall decrease
in cash of £4.3m during the year.
Following the end of the period, a number of individuals chose to exercise and
sell a total of 1,510,860 options received pursuant to the First Salary
Sacrifice Scheme. The Company received £1.06m of cash from the exercise of
these options.
Group balance sheet
Summary balance sheet
£'m 2021 2020
Intangible assets 11.6 10.5
Property, plant and equipment 0.6 1.1
Right-of-use assets 2.6 5.1
Cash 6.7 11.0
Other current assets 5.8 7.0
Lease liabilities (1.5) (3.3)
Current liabilities (12.2) (12.5)
Long-term borrowings - (1.0)
Other non-current liabilities (1.7) (2.7)
Net assets 11.9 15.2
Share capital/share premium 29.4 28.6
Reserves (17.5) (13.4)
Total equity 11.9 15.2
Net assets were £11.9m (2020: £15.2m). The reduction in the year is
principally due to a reduction in cash of £4.3m as we continued to invest in
our technology and support our operations. Right-of-use assets of £2.6m
(2020: £5.1m) reduced together with corresponding lease liabilities of £1.5m
(2020: £3.3m) as we downsized our office capacity and costs across all
regions. Long-term borrowings of £nil (2020: £1.0m) related to the US PPP
loan which was fully forgiven in the second half of the year.
Key Financial Performance Indicators (KFPIs)
Management accounts are prepared on a monthly basis and include KPIs covering
revenue, Adjusted EBITDA, Adjusted EBITDA margin, cash balances and Material
Contracts, and are measured against both the Group's budget and the previous
years' actual results. The KFPIs for the year are:
2021 2020 2019 2018
Net Revenue (£m) 34.7 44.2 45.8 37.4
Corporate (£m) 31.9 40.9 40.3 32.9
Supplier (£m) 2.8 3.3 5.5 4.5
Net Revenue growth % -21.6% -3.5% 23.0% 13.0%
Adjusted EBITDA (Pre-IFRS16) ─ ─ -3.3 -3.2
Adjusted EBITDA 4.4 4.8 ─ ─
Adjusted EBITDA margin (pre-IFRS16) (%) ─ ─ -7.2% -8.6%
Adjusted EBITDA margin (%) 12.8% 10.8% ─ ─
Net Cash (£m) 6.7 10.0 12.3 20.7
Material Contracts 24 23 24 24
Each month the Board assesses the performance of the Group based on these
KFPIs, operational performance indicators, including the number of Active
Members, sales performance, client development, technology updates. The
Group's performance against its KFPIs has been impacted by the effects of
COVID-19 on the business, as described above.
Going concern
The impact of COVID-19 on Ten's business still warrants focus and real-time
management. Net Revenue since the year end has been in line with our
expectations as the COVID-19 pandemic continues to have some impact. It is not
yet fully clear when global economic activity in travel and hospitality will
recover to pre-pandemic levels and whilst we have already seen some recovery
in travel, we must prepare the business for varying levels of revenue. To that
end, we have modelled the effects of differing levels of revenue along with
the measures we can take to ensure that the Group remains within its available
working capital, and we have prepared cash flow forecasts for a period in
excess of twelve months.
The Group has set its budget for FY2022 but we recognise that there is a risk
that the Group will continue to be impacted by reductions in the number of
member engagements and by prospective corporate clients delaying launches. If
revenue is not in line with cash flow forecasts, the Directors have identified
cost savings associated with the reduction in revenue and can identify further
cost savings if necessary.
The Directors have no reason to believe that corporate revenue and receipts
will decline to the point that the Group no longer has sufficient resources to
fund its operations. However, in the unlikely event that this should occur,
the Group will continue to manage its working capital position, as well as
making significant reductions in its fixed cost expenses.
Post Year End contract events
In September, the Group launched a Large contract with Credit Saison, a
leading credit card issuer in Japan making Ten's concierge and lifestyle
services, including Ten's proprietary Digital Platform, available to many of
the client's premium cardholders.
The expansion of an Extra Large contract with a corporate client in EMEA
towards the end of 2021 has resulted in an increased rate of member
engagement, NPS and requests via the Ten Digital Platform; a key success
metric for the corporate client.
Since the year end, the Group has also won and renewed contracts with new and
existing corporate clients, including:
1. a multiple-year renewal of its Medium contract with Barclays Bank UK
plc with a mandate to move the service to an 'on-sale' banking product with a
larger customer base, which will grow revenue;
2. a second contract with DNB Bank ASA to take over the provision of
concierge services to selected Private Banking customers and launch its
digital services in the spring; and
3. a contract to deliver Content services for an existing major global
financial services client to increase customer engagement with Ten's digitally
enabled concierge service and with the client's customer proposition more
generally.
Alan Donald
Chief Financial Officer
23 November 2021
Consolidated Statement of Comprehensive Income
for the year ended 31 August 2021
Note 2021 2020
£'000 £'000
Revenue 4 35,059 46,369
Cost of sales on principal member transactions (394) (2,145)
Net Revenue 4 34,665 44,224
Other cost of sales (797) (828)
Gross profit 33,868 43,396
Administrative expenses (40,232) (48,943)
Other income 1,380 620
Operating profit/(loss) before amortisation, depreciation, interest, share 4,431 4,778
based payments, exceptional items and taxation ("Adjusted EBITDA")
Depreciation 16 & 17 (3,186) (4,395)
Amortisation 15 (3,957) (3,380)
Share-based payment expense 27 (1,627) (1,525)
Exceptional items 4.1 (645) (405)
Operating loss 5 (4,984) (4,927)
Finance income 12 1 2
Finance expense 12 (554) (966)
Loss before taxation (5,537) (5,891)
Taxation expense 13 (237) (1,005)
Loss for the year (5,774) (6,896)
Other comprehensive (expense)/income:
Foreign currency translation differences (5) (60)
Total comprehensive loss for the year (5,779) (6,956)
Basic and diluted loss per ordinary share 14 (7.2)p (8.6)p
Consolidated Statement of Financial Position as at 31 August 2021
Note 2021 2020
£'000 £'000
Non-current assets
Intangible assets 5 11,555 10,532
Property, plant and equipment 561 1,126
Right of use assets 2,601 5,116
Total non-current assets 14,717 16,774
Current assets
Inventories 98 66
Trade and other receivables 5,707 6,941
Cash and cash equivalents 6,662 10,957
Total current assets 12,467 17,964
Total assets 27,184 34,738
Current liabilities
Trade and other payables (11,487) (11,906)
Provisions (568) (596)
Lease Liabilities (1,504) (3,335)
Total current liabilities (13,559) (15,837)
Net current (liabilities)/assets (1,092) 2,127
Non-current liabilities
Borrowings - (1,000)
Lease Liabilities (1,678) (2,668)
Total non-current liabilities (1,678) (3,668)
Total liabilities (15,237) (19,505)
Net assets 11,947 15,233
Equity
Called up share capital 82 81
Share premium account 29,356 28,480
Merger relief reserve 1,993 1,993
Treasury reserve 5 15
Foreign exchange reserve (410) (405)
Retained deficit (19,079) (14,931)
Total equity 11,947 15,233
Consolidated Statement of Changes in Equity for the year ended 31 August 2021
Note Share capital Share premium account Merger relief reserve Foreign exchange reserve Treasury reserve Retained deficit Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 31 August 2019 81 28,480 1,993 (345) (30) (9,234) 20,945
Period ended 31 August 2019:
Loss for the year - - - - - (6,896) (6,896)
Change in accounting policy (326) (326)
Foreign exchange - - - (60) - - (60)
Total comprehensive loss for the year - - - (60) - (7,222) (7,282)
Shares sold by Employee Benefit Trust (EBT) - - - - 45 - 45
Equity-settled share-based payments charge - - - - - 1,525 1,525
Balance at 31 August 2020 81 28,480 1,993 (405) 15 (14,931) 15,233
Loss for the year - - - - - (5,774) (5,774)
Foreign exchange - - - (5) - - (5)
Total comprehensive loss for the year - - - (5) - (5,774) (5,779)
Shares purchased by Employee Benefit Trust (EBT) - - - - (10) - (10)
Equity-settled share-based payments charge - - - - - 1,626 1,626
Issue of new share capital 1 876 - - - - 877
Balance at 31 August 2021 82 29,356 1,993 (410) 5 (19,079) 11,947
Consolidated Statement of Cash Flows for the year ended 31 August 2021
Note 2021 2020
£'000 £'000
Cash flows from operating activities
Loss for the year, after tax (5,774) (6,896)
Adjustments for:
Taxation expense 237 1,005
Finance expense 547 455
Investment income (1) (2)
Amortisation of intangible assets 5 3,957 3,380
Depreciation of property, plant and equipment 687 913
Depreciation of right-of-use asset 2,499 3,482
Equity-settled share based payment expense 1,627 1,525
Exceptional items 4 445 405
Forgiven Loan 1,000 -
Movement in working capital:
Increase in inventories (32) (9)
Decrease in trade and other receivables 1,234 4,128
Increase in trade and other payables (429) (1,190)
Cash from by operations 3,997 7,196
Tax paid (470) (150)
Net cash from by operating activities 3,527 7,046
Cashflows from Investing activities
Purchase of intangible assets 5 (5,393) (5,308)
Purchase of property, plant and equipment (177) (217)
Finance income 1 2
Net cash used by investing activities (5,569) (5,523)
Cash flows from financing activities
Lease Liability repayments (2,599) (3,162)
Sale/(Purchase) of treasury shares 10 (45)
Loan receipts - 1,000
Interest paid on loan (15) -
Interest received - 5
Interest paid on IFRS16 lease liabilities (284) (448)
Cash receipts from issue of share capital 876 -
Net cash used in financing activities (2,012) (2,650)
Foreign currency movements (241) (257)
Net decrease in cash and cash equivalents (4,295) (1,384)
Cash and cash equivalents at beginning of period 10,957 12,341
Cash and cash equivalents at end of period
Cash at bank and in hand 6,662 10,957
Cash and cash equivalents 6,662 10,957
4. Basis of Preparation
The financial information set out in this document does not constitute the
Company's statutory accounts for the years ended 31 August 2021 or 2020.
Statutory accounts for the years ended 31 August 2020 and 31 August 2021,
which were approved by the directors on 23 November 2021, have been reported
on by the Independent Auditors. The Independent Auditors' Reports on the
Annual Report and Financial Statements for each of 2020 and 2021 were
unqualified, did not draw attention to any matters by way of emphasis, and did
not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
Statutory accounts for the year ended 31 August 2020 have been filed with the
Registrar of Companies. The statutory accounts for the year ended 31 August
2021 will be delivered to the Registrar in due course, and are available from
the Company's registered office at Floor 2, 355 Euston Road, London, England,
NW1 3AL and are available from the Company's website:
https://www.tenlifestylegroup.com/investors
(https://protect-eu.mimecast.com/s/7BdQCnRRvcXGgyJh9L98J?domain=tenlifestylegroup.com)
.
The financial information set out in these results has been prepared using the
recognition and measurement principles of International Accounting Standards,
International Financial Reporting Standards and Interpretations in conformity
with the requirements of the Companies Act 2006. The accounting policies
adopted in these results have been consistently applied to all the years
presented and are consistent with the policies used in the preparation of the
financial statements for the year ended 31 August 2020. There are deemed to be
no new standards, amendments and interpretations to existing standards, which
have been adopted by the Group that have had a material impact on the
financial statements
2. Going concern
The consolidated financial statements have been prepared on a going concern
basis. The ability of the Company 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. The current economic conditions continue to create uncertainty,
particularly over (a) corporate members' engagement; and (b) supplier revenue
volumes. The Group's forecasts and projections, taking account of reasonably
possible changes in trading performance, show that the Group expects to be
able to operate within the level of its current cash resources. Having
assessed the principal risks and the other matters discussed in connection
with the going concern statement, the Directors considered it appropriate to
adopt the going concern basis of accounting in preparing its consolidated
financial statements.
Various sensitivity analyses have been performed to reflect a variety of
possible cash flow scenarios, taking into account the continued impact of
COVID-19 pandemic, Overall, the Directors have prepared cash flow forecasts
covering a period of at least twelve months from the date of approval of the
financial statements, which foresee that the Group will be able to operate
within its existing working capital facilities.
The COVID-19 pandemic has had an impact on our business and the Company has
managed costs firmly to ensure operating performances align with pre-COVID-19
levels so the Board believes that the business is able to navigate through
the continued impact of COVID-19 due to the strength of its member
proposition, its balance sheet and the net cash position of the Group.
The continued challenges of the coronavirus pandemic have caused significant
disruption to many businesses where the implementation of various and changing
social distancing measures, travel restrictions and related rules and this,
had an implication for the wider global economy and specifically for the
supply chain within which we reside - primarily our member's willingness or
ability to use our services in the volumes planned. The selection of
assistance services available to our members has been increased in the year,
which has encouraged their engagement. There is, however, a risk that the
Group will be further impacted by continued social distancing restrictions
impacting the volume of member engagement and by prospective corporate clients
delaying launches. If Net revenue is not in line with cash flow forecasts, the
Directors have identified cost savings associated with the reduction in
revenue and have the ability to identify further cost savings if necessary.
Having assessed the principal risks and other matters discussed in connection
with the going concern statement, the Directors have a reasonable expectation
that the group has adequate resources to continue in operational existence for
the foreseeable future. For these reasons, they continue to adopt the going
concern basis of accounting in preparing the financial statements.
3.Segment reporting
The total revenue for the Group has been derived from its principal activity,
the provision of concierge services. This has been disaggregated appropriately
into operational segment and geographical location.
The Group has three reportable segments: Europe, the Middle East and Africa
(EMEA), North and South America ("The Americas") and Asia-Pacific (APAC). Each
segment is a strategic business unit and includes businesses with similar
operating characteristics. They are managed separately in similar time zones
to reflect the geographical management structure.
2021 2020
£'000 £'000
EMEA 18,120 21,975
Americas 9,875 13,784
Asia 6,670 8,465
Net Revenue 34,665 44,224
Add back: Cost of sales on principal member transactions 394 2,145
Revenue 35,059 46,369
EMEA 6,157 8,205
Americas (2,192) (3,862)
Asia 466 435
Adjusted EBITDA 4,431 4,778
Amortisation (3,957) (3,380)
Depreciation (3,186) (4,395)
Share-based payment expense (1,627) (1,525)
Exceptional Items (645) (405)
Operating loss (4,984) (4,927)
Foreign exchange loss (246) (511)
Other net finance expense (307) (453)
Loss before taxation (5,537) (5,891)
Taxation expense (237) (1,005)
Loss for the year (5,774) (6,896)
Net Revenue is a non-GAAP company measure that excludes 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 company non-GAAP specific measure excluding interest,
taxation, amortisation, depreciation, share-based payment and exceptional
costs.
Adjusted EBITDA is the main measure of performance used by the Group's Chief
Executive Officer, 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.
4. Exceptional items
2021 2020
£'000 £'000
Impairment of intangible asset (445) (405)
Other exceptional costs (200) -
(645) (405)
The impairment charge in the year related to specific know-how, enabling more
cost-efficient servicing of concierge requests. An assessment of the database
capitalised determined that a specific portion of this was less likely to
generate future economic benefits due to the fall-out of the COVID-19
pandemic. Such impairment is considered to be one-off in nature and therefore
presented as an exceptional item.
In addition other exceptional costs were incurred in relation to a
non-recurring project considered exceptional in nature.
5. Intangible assets
Capitalised development costs Website Trademarks Total
£'000 £'000 £'000 £'000
Cost
At 31 August 2019 25,122 1,909 55 27,086
Additions 5,308 - - 5,308
Impairment (405) - - (405)
At 31 August 2020 30,025 1,909 55 31,989
Additions 5,393 - - 5,393
Impairment (445) - - (445)
Reclassification (note 16) 63 - - 63
Write-off - - (55) (55)
At 31 August 2021 35,036 1,909 - 36,945
Accumulated amortisation
At 31 August 2019 16,143 1,879 55 18,077
Charge for the year 3,350 30 - 3,380
At 31 August 2020 19,493 1,909 55 21,457
Charge for the year 3,956 - - 3,956
Reclassification (note 16) 32 - - 32
Write-off - - (55) (55)
At 31 August 2021 23,481 1,909 - 25,390
Carrying amount
At 31 August 2020 10,532 - - 10,532
At 31 August 2021 11,555 - - 11,555
All additions related to internal expenditure. The useful economic lives of
the capitalised development platforms and website are assessed to be five
years and three years respectively. The impairment charge in the year related
to specific know-how, enabling more cost-efficient servicing of concierge
requests. An assessment of the database capitalised determined that a specific
portion of this was less likely to generate future economic benefits due to
the fall-out of the COVID-19 pandemic.
6. Cautionary Statement
This document contains certain forward-looking statements relating to Ten
Lifestyle plc (the "Group"). The Group 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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR FIFFFLALSFILRecent news on Ten Lifestyle
See all newsREG - Ten Lifestyle Group - Total Voting Rights and Share Capital
AnnouncementREG - Ten Lifestyle Group - Interim results for the 6 months ended 29 Feb 2024
AnnouncementREG - Ten Lifestyle Group - Total Voting Rights and Share Capital
AnnouncementREG - Ten Lifestyle Group - Notice of Half-Year Results
AnnouncementREG - Ten Lifestyle Group - Ten wins new contract with Emirates NBD
Announcement