REG - Ten Lifestyle Group - Preliminary Results 2024
13/11/2024 07:15
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RNS Number : 9828L Ten Lifestyle Group PLC 13 November 2024
Embargoed: 07:00hrs 13 November 2024
Ten Lifestyle Group plc
("Ten", the "Company" or the "Group")
Preliminary results for the year ended 31 August 2024
Ten Lifestyle Group plc (AIM: TENG) the global concierge platform driving
customer loyalty for global financial institutions and other premium brands,
is pleased to announce its preliminary results for the year ended 31 August
2024.
Financial highlights
· Net Revenue(1) of £62.9m (2023: £63.0m), £64.4m at constant
currency
o corporate revenue(2) of £55.3m (2023: £55.6m)
o supplier revenue(3) of £7.6m (2023: £7.4m)
· Adjusted EBITDA(4) up £0.8m to £12.8m (2023: £12.0m), £12.6m at
constant currency
· Adjusted EBITDA margin(5) increased to 20.3% (2023: 19.1%)
· Second consecutive year of profit before tax of £0.5m (2023:
£0.9m)
· Cash and cash equivalents of £9.3m (2023: £8.2m) and net cash of
£3.9m (H1 2024: £1.9m; FY 2023: £3.7m)
Operational highlights
· Material Contract(6) developments delivered Net Revenue growth at
constant currency in H2 2024
· £12.8m (2023: £13.9m) investment in proprietary digital
platforms, communications, and technologies, of which £6.7m (2023: £7.3m)
was capitalised
o launched "Ten Box Office"; a significant milestone in Ten's digital
roadmap
o launched and enhancing generative AI solutions to improve service quality
and efficiency
· Number of Active Members(7) maintained; 349k (2023: 353k)
· Maintained a high levels of member satisfaction(8), which drives
repeat use and value to Ten's corporate clients
· Remained focused on cost and efficiency gains, supporting EBITDA
margin growth
Current Trading and Outlook
We continue to generate revenue by serving existing Active Members and
activating "first time users" from our existing Eligible Member base. In
addition, we have a healthy pipeline of new partnership opportunities that
will further increase our Eligible Member base.
Our corporate clients pay us to improve the engagement and retention of their
most valuable customers, which drives their commercial success.
We expect to continue to convert our strong pipeline of contract opportunities
with global financial institutions and premium brands, with new contract
developments since the start of the financial year expected to deliver
revenues from H2 2025. Since the end of the year, 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.
Since the end of the year, we successfully raised £5.9m through a secondary
placing, to support growth from new business as well as to strengthen our
balance sheet.
We remain focused on increasing both Net Revenue and Adjusted EBITDA
profitability. We plan to maintain investment in our proprietary technology
(including AI), communications, and content, which provide competitive
advantage. Our technology roadmap is led by our new CTO, Jon Mullen, who
brings a deep expertise in developing complex platforms and leveraging AI.
Given our positive trading to date, healthy sales pipeline producing new
contract wins and contract developments, strengthened balance sheet, strong
service levels, improving profitability, and continued investment to improve
our technology and proposition, we are optimistic, even at this early stage of
the year, that 2025 will be a year of Net Revenue and profitability growth.
Alex Cheatle, CEO of Ten Lifestyle Group, said;
"After two years of exceptional growth, Ten has sustained levels of Net
Revenue, whilst achieving record Adjusted EBITDA profit. We continue to
develop an AI-driven digital platform, a deep competitive moat and a robust
sales pipeline for future growth."
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. Medium, Large, and Extra Large contracts are collectively
Ten's "Material Contracts".
7 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".
8 Ten measures member satisfaction using the Net Promoter Score (NPS)
management tool, which gauges the loyalty of a firm's member relationships
(https://en.wikipedia.org/wiki/Net_Promoter).
Analyst Presentation
An online analyst presentation will be held by video link at 9:00am on 13
November 2024.
Investor Webinar
Additionally, an Investor Webinar tailored for current and prospective
investors will be presented at 4:30pm on 25 November 2024, providing
participants a deeper insight into the Group's results and strategic
initiatives and a chance to engage 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 www.tenlifestylegroup.com/
(http://www.tenlifestylegroup.com/) or call:
Ten Lifestyle Group plc +44 (0)20 7850 2796
Alex Cheatle, Chief Executive Officer
Alan Donald, Chief Financial Officer
Singer Capital Markets Advisory LLP, Nominated Advisor and Broker Corporate +44 (0) 20 7496 3000
Finance: James Moat / Oliver Platts
Corporate Broking: Tom Salvesen / Charles Leigh-Pemberton
Notes to Editors:
About Ten Lifestyle Group Plc
Ten Lifestyle Group Plc (http://www.tenlifestylegroup.com/) partners with
financial institutions and other premium brands to attract and retain wealthy
and mass affluent customers.
Millions of members have access to Ten's services across lifestyle, travel,
dining and entertainment on behalf of over fifty clients including HSBC,
Swisscard and Royal Bank of Canada. Ten's partnerships are based on multi-year
contracts generating revenue through platform-as-a-service and technology
fees.
Ten's operations are underpinned by an increasingly sophisticated
personalisation platform comprising industry-first, proprietary technology,
thousands of supplier relationships and 25 years of proprietary expertise
delivered from over 20 global offices. Ten was also the first B Corp-certified
company on the AIM market, demonstrating its commitment to sustainability,
social responsibility and ethical business practices.
Ten is on a mission 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
Introduction
During my first year as Ten's Chairman, I have been pleased that the
step-change in profitability achieved last year was sustained across this year
and that Net Revenue remained at historically high levels. The global
tailwinds expanding the number and value of the world's affluent individuals
underpin our thesis that the "experience economy" will continue to grow. I am
confident that the actions we have taken in the year to deliver value to our
members, corporate clients, and partners will continue to demonstrate
product-market fit, maintain our pre-eminent position versus competitors, and
provide a platform for future growth and value realisation.
I am thankful to all my colleagues at Ten who have continued to take every
opportunity to delight our members, throughout the year. Ten assists our
members to discover, organise, and buy travel, dining, entertainment, events,
and luxury retail. We create value by saving our members time and money or
providing access to in-demand tickets or bookings more efficiently than they
could achieve on their own.
We are proud to be trusted and valued by our clients. Over 85% of our revenues
are sourced from globally renowned banks, wealth managers, and credit card
organisations. Through serving their customers, our "members", Ten
demonstrates a "return on investment" (ROI) to our corporate clients by
generating improved customer acquisition, retention, satisfaction, and
profitability.
Members, clients, and partners benefit from improved service levels across the
Ten Digital Platform, member proposition, and consistently high member Net
Promoter Score (NPS) results. Specifically, our continued investment in
digitisation, technology, and generative artificial intelligence (AI) drives
up service quality and personalisation for members and operational efficiency
and insight for our corporate clients and partners.
We are confident that the combination of significant global tailwinds and a
relentless focus on value creation for our members and corporate clients,
together with Ten's Growth Engine, creates ideal conditions for Ten to scale
further.
The Board's focus in 2025 will continue to be on exceptional operational
accountability and execution to achieve further digital transformation and
efficiencies, demonstrating our value to all stakeholders and enhancing
shareholder value and liquidity.
Strategy
Our strategy is to provide preferred, premium access and seamless organisation
of the travel, dining, entertainment, and other lifestyle needs of the
customers of our corporate clients.
Central to our strategy is the creation of a tailored customer loyalty
proposition for corporate clients, driving both new and existing corporates to
invest in Ten's increasingly sophisticated personalisation platform. This
investment enhances the profitability and loyalty of their most valuable
customers and gives us the opportunity to fund our continuous advancements in
technology, content, and service quality. This, in turn, fortifies our unique
member proposition and propels the Growth Engine at the heart of Ten's
business model.
Ten partners with corporate clients, primarily in the financial services
sector, and has developed a strong track record of growing the value of these
partnerships over time. We also work with premium brands in other sectors
seeking to enhance engagement, retention, and acquisition of their high-value
customers.
Ten's unique member proposition ensures access to benefits and experiences not
generally available to the public. The combined buying power of Ten's
membership and operational scale enables members to achieve better outcomes
than they could on their own. The member proposition is accessible for online
search and booking through Ten's market-leading proprietary lifestyle and
travel technology platform - the "Ten Digital Platform" - or by phone, email,
live chat, and WhatsApp via our expert Lifestyle Managers.
We have continued to invest into Ten's proprietary customer relationship
management platform (TenMAID) and the Ten Digital Platform. This investment,
along with 26 years of expertise, enables our Lifestyle Managers to provide
members with 24/7 services in 22 languages (2023: 18). Our exceptional service
levels are reflected in a consistently high NPS, an indicator of positive
member impact for our corporate clients.
Our technology platforms deliver superior corporate client outcomes, which in
turn drives revenue from existing corporates by increasing ROI on our client's
spend. These platforms also serve as a key differentiator for Ten, giving us a
competitive edge when bidding for new contracts.
AI and Environmental, Social and Governance (ESG) considerations have been
pivotal in shaping the Board's decision making and strategy and will remain so
in the future. AI presents significant opportunities for operational
efficiency and member experience.
This year, we launched Experiences x Ten to provide members with access to
exclusive client-commissioned events sourced and hosted by Ten and Ten Box
Office which gives members exclusive access to premium event tickets and
packages on the Ten Digital Platform; a significant milestone in Ten's digital
roadmap.
Beyond supporting good governance and global climate change management, ESG
offers a substantial opportunity to enhance our differentiation and value
proposition to our stakeholders. The continuation of our B Corp status
underscores our commitment to this strategy.
The ESG Working Group, established in 2021, remains under my Chairmanship,
focusing on assessing material ESG risks and opportunities stemming from our
business. Its ongoing efforts aim to deliver on our strategy by developing
internal reporting and transparency, instigating behavioural change within the
business, and ensuring that we offer our members ESG-friendly choices in their
interactions with us.
Board composition and our people
The Group continues to benefit from a founder-led executive management team,
showcasing strength in leadership, innovation, and resilience to develop the
business over the long term in all regions.
During the year we welcomed Edward Knapp and Carolyn Jameson as Non-Executive
Directors, who bring significant growth, governance, and subject matter
expertise to our ranks. I am confident that the Board's composition is well
equipped to meet the evolving needs of our business.
Our commitment to developing our people is evident, in part, through the Ten
Academy and Ten's Global Leadership Programme - a twelve-month internal
development initiative shaping the Group's future leaders on a global scale.
An employee culture rooted in Ten's principles of transparency, education,
promotion, engagement, our Diversity, Equity, and Inclusion (DEI) Programme,
underpinned by our B Corp certification, supports our diverse, global
workforce and helps us attract, retain, and develop the best talent.
On behalf of the Board, I would like to thank the entire Ten team for their
successes, professionalism, and commitment throughout the year. Their
contributions are highly valued, and we take great pride in the teams'
dedication to our collective success.
Summary
After two years of exceptional growth, Ten has sustained levels of Net
Revenue, whilst achieving record Adjusted EBITDA profit and margin. These
results demonstrate the ability of our business model to drive efficiencies
whilst delivering value to our corporate clients, as an integral component of
their customer engagement strategies.
The expanding "experience economy" coupled with the desire of affluent
individuals for convenient, technology-enabled access to travel, dining and
lifestyle experiences - something Ten excels in providing - offers our
corporate clients a unique opportunity to forge deeper connections with their
most valuable customers, indicating a significant potential for market growth.
The initiatives we have undertaken this year, along with our plans for 2025,
highlight our commitment to capitalising on these global opportunities.
Following the end of the period, Ten secured a significant multi-year Extra
Large contract in the USA with an existing global corporate client initially
worth c.£5.0m per year in corporate revenue and a Medium contract in AMEA
with a new client, both of which are expected to transition from their
respective incumbent providers in latter stages of H1 FY 2025. These contract
wins underpin our belief in strong revenue and profit growth in the year
ahead.
Given the significant volume of service requirements of these contracts from
launch, operational and working capital investment will be necessary to
support the transition and ongoing service delivery. To meet these short-term
working capital needs for the launch of this and other new contract wins, as
well as to strengthening our balance sheet, we successfully raised
approximately £5.9m through a secondary placing with new and existing
shareholders and a retail offer to existing shareholders.
I want to express my gratitude to our shareholders for their support
throughout the year and beyond.
Jules Pancholi
Non-Executive Chairman
12 November 2024
Chief Executive's statement
Overview
This year served as a period of consolidation, during which we reinforced
Ten's foundations for future growth, continued profitability, and service
improvements.
The "Growth Engine" at the heart of our business continues to demonstrate its
effectiveness. Following two years of 35% growth, we maintained Net Revenue
levels. We also sustained the step-change in profitability achieved in the
prior year, whilst continuing to invest into our proprietary technology,
including AI, which will drive our future growth and profitability.
By delivering high service levels across our high-touch and digital platforms
and continuing to invest in our digitally enabled service platform, we have
developed a deep competitive moat and a robust sales pipeline for future
growth.
Consolidated Net Revenue and profitability
After two years of 35% growth, we maintained Net Revenue levels at £62.9m
(2023: £63.0m), with a slight increase to £64.4m in constant currency.
Our pipeline of new business yielded five new Medium contract wins, including
new partnerships with a Private Bank in AMEA, Emirates NBD and the Global
Travel Collection.
We also achieved significant contractual developments with existing corporate
clients, including a multi-year extension of an existing Large contract on
renegotiated terms, with options to expand the scope of current services.
However, the same corporate client decided to withdraw concierge services from
its customer engagement strategy, leading to the loss of a Large contract in
the last quarter of the year.
Since the end of the year, we have secured significant contract expansions and
new business wins. 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, both of which are expected to
transition from their respective incumbent providers in latter stages of H1 FY
2025. Given that these contracts require us to take over from incumbent
high-touch providers, they will have high service requirements from launch. We
also secured significant multi-year renewals of two Extra Large contracts with
existing global clients, underpinning our revenue outlook.
We sustained the 145% step-change in Adjusted EBITDA profitability achieved in
the prior year (2023: £12.0m; 2022: £4.9m), increasing Adjusted EBITDA by 7%
to £12.8m. Adjusted EBITDA margin increased to 20.3% (2023: 19.1%), fuelled
by enhanced efficiencies, driven by advancements in our technology and growing
professionalism of our operational staff. This also resulted in the second
consecutive year of profit before tax of £0.5m (2023: £0.9m).
Cash generated from operations in the year increased. The Group ended the year
with cash and cash equivalents totalling £9.3m (2023: £8.2m). Net cash
continued to improve to £3.9m (H1 2024: £1.9m; FY 2023: £3.7m).
We continue to drive our market-leading digital capability
We invested £12.8m (2023: £13.9m) in technology, communications, and content
in the year to develop the quality, operational, and competitive advantages of
our digital capability, of which £6.7m (2023: £7.3m) was capitalised. Our
focus on market-leading digital capability clearly differentiates us from our
competitors and is intended to underpin our long-term "Growth Engine" strategy
to become the world's most trusted service.
The investments across the year led to significant advances in our digital
roadmap. These advances include improved personalisation and automation,
leading to an improved user experience. One of the key developments was the
launch of Ten Box Office, our proprietary marketplace technology, which
consolidates Ten's ticketing inventory. Clients have responded to this launch
by promoting this functionality, stimulating new members to become active,
driving our impact and revenues.
Additionally, we have expanded our service delivery channels to include
WhatsApp and chat. These platforms now feature semi-automated conversations,
which are seamlessly transferred to our Lifestyle Managers once the automated
interaction runs its course. These improvements not only reduce the time to
serve but also deliver a stronger ROI for our corporate clients' customer
loyalty budgets, whilst improving the user/member experience. This unlocks
additional budget to utilise Ten's full suite of services and increases the
stickiness of our service.
Our early adoption of AI in recent years, and our plans to continue this into
the future, underscores our commitment to harnessing its potential to
turbo-charge our Growth Engine by using AI to improve operational efficiency
and service quality. We are seeing material results in multiple areas of the
business, from translations to coding and quality assurance for high touch
requests. We continue to develop an AI "co-pilot" for Lifestyle Managers, who
make up the largest group of employees, to support more efficient and
high-quality service.
Our unique "not available on the internet" assets, such as exclusive tables at
top restaurants, tickets for sold-out shows, exclusive events, and value-add
benefits at hotels, empowered by our AI technology, delivers value for our
members via our digital self-serve and high-touch channels. This advantage
sets us apart from mass-market AI interfaces reliant on publicly available
assets.
Enhanced member proposition, satisfaction, and engagement
Throughout the year, we have strengthened our core propositions to deliver a
more compelling and accessible offering to serve existing members and attract
new members.
The attractiveness and accessibility of our member proposition directly
correlates with engagement, usage, and advocacy among our members. Member
engagement and satisfaction are key to building value for corporate clients,
who want to improve the engagement, retention, and acquisition of their most
valued customers. This, in turn, justifies increased corporate spending with
us and attracts new corporate clients and new supplier partners to work with
us.
We are delighted to have maintained another strong year of member
satisfaction, consistent with the high levels of the prior year, as measured
by NPS.
We believe that our high member satisfaction and strengthened member
proposition have played a key role in broadly maintained the number of Active
Members using the service. These metrics not only highlight the success of our
member-focused initiatives but also serve as compelling evidence of the ROI
for corporate clients continuing to invest in our service.
Summary
We believe our competitive moat is deeper than ever, backed by Ten's global
reach, market-leading member proposition and leading technology platforms,
which delivers a strong ROI for our corporate clients. This has been achieved
through our commitment to innovation and continuing to invest in our
technology, AI, content and market expertise and better pricing, access,
benefits, and integration with our supplier partners, which has enhanced the
service to members and corporate clients.
This strategy recognises the importance of innovation in building our market
position and improving service levels, whilst continuing to progress from last
year's step-change in Adjusted EBITDA profitability at £12.8m (2023: £12.0m)
and growing Adjusted EBITDA margin up to 20.3% (2023: 19.1%).
I am proud of how our people across our offices globally continue to
professionally deliver and innovate high-quality service to our members, paid
for by our corporate clients. I would like to express my thanks also to our
outstanding management team, which continues to drive the business
successfully towards our mission of becoming the world's most trusted service.
Alex Cheatle
Chief Executive Officer
12 November 2024
Financial Review
Net Revenue was maintained at £62.9m (2023: £63.0m) and up £1.4m (2.2%) at
constant currency. Adjusted EBITDA of £12.8m (2023: £12.0m), £12.6m at
constant currency, increased by 7% as operational efficiencies delivered an
improved Adjusted EBITDA margin of 20.3% (2023: 19.1%).
Summary P&L 2024 2023
£m £m
Revenue 67.3 66.7
Corporate revenue 55.3 55.6
Supplier revenue 7.6 7.4
Net Revenue 62.9 63.0
Operating expenses and other income (50.1) (51.0)
Adjusted EBITDA 12.8 12.0
Adjusted EBITDA % 20.3% 19.1%
Depreciation (3.3) (2.9)
Amortisation (5.8) (5.3)
Share-based payments (0.9) (0.9)
Exceptional items charge (0.7) (1.1)
Operating profit before interest and tax 2.1 1.8
Net finance expense and FX (1.6) (0.9)
Profit before taxation 0.5 0.9
Taxation credit 0.5 3.6
Profit for the period 1.0 4.5
Net cash 3.9 3.7
Adjusted EBITDA
Adjusted EBITDA is not a statutory measure, however, 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 and related taxes.
Revenue and Net Revenue
Revenue for the twelve months to 31 August 2024 was £67.3m, representing a
modest increase from £66.7m in the prior year. Net Revenue remained
consistent with the previous year at £62.9m (2023: £63.0m) (£64.4m at
constant currency), in line with market expectations. Net Revenue includes the
direct cost of sales related to member transactions where Ten acts as the
principal service provider, capturing the full scope of member transactions
managed by the Group.
Corporate Revenue was stable at £55.3m (2023: £55.6m), with underlying base
business relatively flat overall. The loss of a Large contract in the last
quarter of the year and FX headwinds were partially offset by new contract
wins during the year. These included Medium contracts with key corporate
clients, such as a private bank in AMEA and Emirates NBD, which began
generating revenue in H2 2024, providing a foundation for growth in the coming
year.
Supplier Revenue increased to £7.6m from £7.4m, reflecting a consistent
demand for supplier-driven offerings.
The table below provides a four-year history of Net Revenue.
Net Revenue 2024 2023 2022 2021
£m £m £m £m
Corporate revenue 55.3 55.6 41.1 31.9
Supplier revenue 7.6 7.4 5.7 2.8
62.9 63.0 46.8 34.7
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 supplier partners through the provision
of these concierge services.
Contract by size 2024 2023 change
Extra Large 3 3 -
Large 6 6 -
Medium 20 19 1
29 28 1
Contract by region 2024 2023 change
Europe 8 10 (2)
Americas 10 11 (1)
AMEA 10 6 4
Global 1 1 -
29 28 1
During the year, the Group announced five new Medium contract wins as well as
an expansion of an existing contract from a Medium to a Large and an expansion
of an existing Large contract. Offsetting this, four Medium contracts did not
renew or became Small contracts as well as the loss of a Large contract in the
last quarter of the year. Within the regions, AMEA saw the most significant
growth, adding two new contracts and growing two more into Material Contracts.
Europe saw one Large contract and one Medium contract loss, whilst the
Americas saw a net decrease of one Medium contract.
Post balance sheet we have announced a further two contract wins, an Extra
Large in the Americas region and one Medium contract in AMEA, as set out in
tables below.
Contract by size Nov 2024 Nov 2023 change
Extra Large 4 3 1
Large 6 6 -
Medium 21 19 2
31 28 3
Contract by region Nov 2024 Nov 2023 change
Europe 8 10 (2)
Americas 11 11 -
AMEA 11 6 5
Global 1 1 -
31 28 3
Regional analysis
While there is a clear overlap between the geographic locations of our
corporate 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 2024 2023 % change
£m £m
Europe 26.4 25.9 2%
Americas 25.0 25.8 (3%)
AMEA 11.5 11.3 2%
62.9 63.0 (0%)
Net Revenue in Europe saw a modest 2% increase to £26.4m (2023: £25.9m)
(£26.5m at constant currency), supported by sustained activity across key
corporate contracts. This stability reflects strong member engagement and
steady supplier revenue in the region.
Net Revenue in the Americas decreased slightly by 3% to £25.0m (2023:
£25.8m) (£25.6m at constant currency), primarily due to shifts in contract
sizes and member activity normalising after a high-growth period in prior
years. Some of the slow-down in growth was due to corporate clients holding
back on activity in anticipation of our digital roll out of Ten Box Office and
other digital enhancements. Nonetheless, strong member demand and engagement
remain across longstanding client relationships in the region.
Net Revenue in AMEA increased by 2% to £11.5m (2023: £11.3m) (£12.3m at
constant currency). Growth in this region was supported by increased member
demand and new business activity, particularly in key Middle Eastern markets,
which continue to strengthen the Group's presence and market penetration
across the region with the post period end Extra Large contract win expected
to drive growth in the region in the coming year.
Operating expenses and other income
Operating expenses and other income totalled £50.1m (2023: £51.0m),
reflecting a slight decrease of £0.9m. This was largely driven by efficiency
gains across the Group, enabling effective cost management alongside stable
revenue levels. Total full-time equivalent (FTE) employees was 1,145 at the
year end (2023: 1,238), a reduction of 93 FTEs as the Group continues to
invest in technology and infrastructure to optimise service delivery and
enhance profitability.
Regional Adjusted EBITDA
The Group's Adjusted EBITDA increased to £12.8m (2023: £12.0m) resulting in
an improved Adjusted EBITDA margin of 20.3% (2023:19.1%) reflecting stable
revenue and continued focus on operational efficiencies. This figure includes
expenses aside from depreciation of £3.3m (2023: £2.9m), amortisation of
£5.8m (2023: £5.3m), exceptional items of £0.7m (2023: £1.1m), and
share-based payments of £0.9m (2023: £0.9m).
Following the allocation of central costs, including IT infrastructure,
software development, property, senior management, and other central expenses,
the Adjusted EBITDA by region is presented below:
Adjusted EBITDA 2024 2023 Change
£m £m £m
Europe 10.4 9.2 1.2
Americas 0.6 1.9 (1.3)
AMEA 1.8 0.9 0.9
Total 12.8 12.0 0.8
Europe
Adjusted EBITDA for Europe increased to £10.4m (2023: £9.2m), growing by
£1.2m during the year both at actual and constant currency. This growth was
primarily driven by stable revenue performance combined with operational
efficiencies, supporting strong regional profitability and continued growth in
supplier revenue.
Americas
Adjusted EBITDA in the Americas decreased to £0.6m (2023: £1.9m) (£0.2m at
constant currency), reflecting adjustments in contract sizes and cost
structures aimed at maintaining long-term profitability whilst in addition
investing in resources in advance of future contract launches.
AMEA
AMEA's Adjusted EBITDA increased to £1.8m (2023: £0.9m) (£1.9m at constant
currency). with the region benefiting from enhanced member activity and new
business activity across key markets as well as continuing operational
efficiencies, supporting increased profitability.
Amortisation
Amortisation costs, relating to the internal platform (TenMAID) and the
member-facing platforms, were £5.8m (2023: £5.3m), reflecting continued
investment in technology to drive improvements in service levels, efficiency,
and competitive advantage. The increase from the prior year is attributable in
part to the realisation of a full year of amortisation of costs capitalised
over the course of the previous financial year.
Net finance expense
Net finance expense in the year was £1.6m (2023: £0.9m); the expense
included loan interest of £0.6m (2023: £0.4m), IFRS 16 lease interest
expense of £0.4m (2023: £0.2m) as well as foreign exchange losses on the
translation of inter-company balances in the year of £0.6m (2023: £0.2m).
Loan interest increased following an increase in total debt to £5.4m (2023:
£4.6m). Since year-end, the Group has repaid £1.45m of related party loans
using the proceeds from the secondary placing.
The increase in IFRS 16 lease interest is as a result of leases having been
renewed, modified or entered into over the course of the year.
Share-based payments
The share-based payments expense in the year was £0.9m (2023: £0.9m). These
related to share-based payments expense reflecting share grants made under
management incentive plans in the year (see note 29), including the extension
of salary sacrifice share options of £0.4m (2023: £0.2m).
Exceptional items expense
The exceptional items expense was £0.7m (2023: £1.1m), The expenses incurred
principally related to a specific restructuring programme across the Group.
This impacted a number of functions, both service and support functions as we
reset our cost base and realigned some management structures to better support
the Group going forward.
Profit before tax (PbT)
The Group has a profit before tax for the second consecutive year, achieving a
profit before tax of £0.5m (2023: £0.9m). The decrease from the prior year
is primarily driven by non-cash items and foreign exchange losses on
inter-company balances.
Taxation
The taxation expense for the year was a tax credit of £0.5m (2023: £3.6m).
The tax credit for the year was the result of the recognition of deferred tax
assets related to historical losses of £1.7m (2023: £5.3m). This was
partially offset by tax expense in overseas operations and other deferred tax
movements.
Earnings per share (basic, diluted and underlying)
The profit for the year was £1.0m (2023: £4.5m), resulting in a basic profit
per share (excluding treasury shares) of 1.2p (2023: 5.4p) and diluted profit
per share of 1.1p (2023: 5.2p).
Underlying earnings per share is calculated by adjusting the profit / (loss)
attributable to equity shareholders for exceptional items of £0.7m (2023:
£1.1m) along with deferred tax arising from the recognition of historical
losses of £1.7m (2023: £5.3m), resulting in a basic and diluted underlying
EPS of 0.0p (2023: 0.4p).
The Board does not recommend the payment of a dividend.
Group cash flow
Summary Cash Flow
£m 2024 2023
£m £m
Profit before tax 0.5 0.9
Net finance expense 1.5 0.9
Working capital changes (1.0) 0.4
Non-cash items (share based payments, depreciation and amortisation charges, 10.0 9.3
exceptional items)
Operating cash flow 11.0 11.5
Capital expenditure (0.3) (0.5)
Investment in intangibles (6.7) (7.3)
Taxation (1.2) (0.8)
Cash inflow 2.8 2.9
Cash flows from financing activities
Sale of treasury shares - 0.1
Receipts issue of shares 1.1 0.6
Loan receipts 1.1 1.2
Loan payments (0.3) -
Loan receipts - Invoice Discounting Facility (0.1) 0.1
Repayment of leases and net interest (3.7) (3.2)
Net cash used in financing activities (1.9) (1.2)
Foreign currency movements 0.2 (0.1)
Net increase in cash and cash equivalents 1.1 1.6
Cash and cash equivalents 9.3 8.2
Net cash 3.9 3.7
Cash generated from operations was £11.0m (2023: £11.5m). Non-cash items in
the year of £10.0m (2023: £9.3m) was substantially made up of depreciation
of £3.3m and amortisation charges of £5.8m for the year.
The expenditure that was capitalised on IT equipment and infrastructure, the
Ten Digital Platform ,and TenMAID totalled £7.0m (2023: £7.8m) as we
continue to invest in our technology.
Net cash used in financing activities is primarily due to IFRS 16 lease
payments and interest of £3.7m (2023: £3.2m). This was offset by loan
receipts of £1.1m (2023: £1.2m) and receipts from the issuance of equity of
£1.1m (2023: £0.6m).
This has led to an overall increase in cash of £1.1m during the year (2023:
£1.6m), with net cash at £3.9m (2023: £3.7m).
Group balance sheet
Summary balance sheet 2024 2023
£'m £'m
Intangible assets 16.3 15.4
Property, plant and equipment 0.6 0.9
Right-of-use assets 5.5 1.9
Deferred tax assets 5.0 4.3
Cash 9.3 8.2
Other current assets 12.5 12.1
Current lease liabilities (1.2) (1.7)
Current liabilities (19.8) (20.9)
Short term borrowings (4.4) (1.6)
Non-current lease liabilities (4.4) (0.4)
Long-term borrowings (1.0) (3.0)
Net assets 18.4 15.2
Share capital/share premium 32.5 31.4
Reserves (14.1) (16.2)
Total equity 18.4 15.2
Net assets were £18.4m (2023: £15.2m). The growth in the year is driven by
increased profitability in addition to the recognition of a deferred tax asset
of £0.7m related to historical losses for which the Group expects to be able
to utilise against future profits. The Group has also continued to invest in
its digital platforms driving the increase in intangible assets. This was
offset by increases in borrowing arrangements.
Key Financial Performance Indicators (KFPIs)
Management accounts are prepared on a monthly basis and include KPIs covering
revenue, Adjusted EBITDA, 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:
2024 2023 2022 2021
Net Revenue (£m) 62.9 63.0 46.8 34.7
Corporate (£m) 55.3 55.6 41.1 31.9
Supplier (£m) 7.6 7.4 5.7 2.8
Net Revenue growth % -0% 35% 35% -21.6%
Adjusted EBITDA 12.8 12.0 4.9 4.4
Adjusted EBITDA Margin % 20.3% 19.1% 10.4% 12.8%
Net cash (£m) 3.9 3.7 3.2 6.7
Material Contracts 29 28 28 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, corporate client development and technology
updates. The Group's performance has strengthened since being previously
impacted by COVID-19, achieving records across several of its KFPIs.
Going concern
The impact of plausible adverse macroeconomic scenarios on the Group's
business still warrants focus and ongoing management. The Group is
particularly exposed to the adverse impact on variable revenues from these
scenarios as well as the risk of corporate revenue contracts not being
renewed.
The Group has set its budget for 2025 and forecast for the following year
which includes the recently announced contract wins. We recognise that there
are scenarios under which the Group could be impacted by reductions in the
number of member engagements and by prospective corporate clients failing to
renew contracts. From our budget base case, a stress scenario of 20% reduction
in variable revenues was performed as well as a severe downside scenario of
90% reduction in variable revenues. In each of these scenarios, 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.
Since the year end, the completion of the secondary placing of new Ordinary
Shares, which raised gross proceeds of £5.9m, provided further liquidity to
ensure the Group can meet its obligations as they come due.
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 this should occur, the
Group will continue to manage its working capital position, as well as making
significant reductions in its fixed costs.
Post Year End events
Since the end of the year, the Group has:
· won a significant multi-year Extra Large contract in the USA with an
existing global corporate client. Ten will transition service from the
incumbent high-touch provider in late H1 FY 2025, with the launch of its
digitally enabled concierge platform scheduled for H2 FY 2025
· won a Medium contract in AMEA with a new corporate client, which is
expected to transition from the incumbent provider in late H1 FY 2025
· 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 will
support the Group's short-term working capital requirements for the launch of
the two contract wins, as well as having repaid £1.45m of related party
loans, in addition to strengthening its balance sheet
Alan Donald
Chief Financial Officer
12 November 2024
Consolidated Statement of Comprehensive Income for the year ended 31 August
2024
Note 2024 2023
£'000 £'000
Revenue 4 67,264 66,656
Cost of sales on principal member transactions (4,361) (3,653)
Net revenue 4 62,903 63,003
Other cost of sales (1,957) (2,032)
Gross profit 60,946 60,971
Administrative expenses (59,601) (60,012)
Other income 731 836
Operating profit before amortisation, depreciation, interest, share-based 12,801 12,004
payments, exceptional items, and taxation ("Adjusted EBITDA")
Depreciation 18 & 19 (3,332) (2,916)
Amortisation 17 (5,770) (5,287)
Share-based payment expense 29 (900) (908)
Exceptional items 5 (723) (1,098)
Operating profit 6 2,076 1,795
Net finance expense 13 (1,539) (871)
Profit before taxation 537 924
Taxation credit 14 485 3,623
Profit for the year 1,022 4,547
Other comprehensive income/(expense):
Foreign currency translation differences 170 (564)
Total comprehensive profit for the year 1,192 3,983
Basic profit per ordinary share 15 1.2p 5.4p
Diluted profit per ordinary share 15 1.1p 5.2p
Basic underlying profit per ordinary share 15 0.0p 0.4p
Diluted underlying profit per ordinary share 15 0.0p 0.4p
The consolidated statement of comprehensive income has been prepared on the
basis that all operations are continuing operations.
Consolidated Statement of Financial Position as at 31 August 2024
Company No: 08259177
Note 2024 2023
£'000 £'000
Non-current assets
Intangible assets 17 16,349 15,394
Property, plant, and equipment 18 636 912
Right of use assets 19 5,489 1,911
Deferred tax asset 16 4,957 4,297
Total non-current assets 27,431 22,514
Current assets
Inventories 55 511
Trade and other receivables 21 12,408 11,608
Cash and cash equivalents 23 9,267 8,229
Total current assets 21,730 20,348
Total assets 49,161 42,862
Current liabilities
Trade and other payables 24 (19,231) (20,059)
Provisions 25 (598) (931)
Lease liabilities 27 (1,236) (1,738)
Borrowings 26 (4,389) (1,622)
Total current liabilities (25,454) (24,350)
Net current liabilities (3,724) (4,002)
Non-current liabilities
Borrowings 26 (1,011) (2,950)
Lease liabilities 27 (4,360) (399)
Total non-current liabilities (5,371) (3,349)
Total liabilities (30,825) (27,699)
Net assets 18,336 15,163
Equity
Called up share capital 28 87 85
Share premium account 32,389 31,272
Merger relief reserve 1,993 1,993
Treasury reserve 606 606
Foreign exchange reserve (941) (1,111)
Retained deficit (15,798) (17,682)
Total equity 18,336 15,163
Consolidated Statement of Changes in Equity for the year ended 31 August 2024
Note Called up 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 2022 84 30,658 1,993 (547) 513 (22,858) 9,843
Profit for the year - - - - - 4,547 4,547
Foreign exchange - - - (564) - - (564)
Total comprehensive income for the year - - - (564) - 4,547 3,983
Employee Benefit Trust (EBT) costs - - - - 93 - 93
Equity-settled share-based payments charge 29 - - - - - 629 629
Issue of new share capital 1 614 - - - - 615
Balance at 31 August 2023 85 31,272 1,993 (1,111) 606 (17,682) 15,163
Profit for the year - - - - - 1,022 1,022
Foreign exchange - - - 170 - - 170
Total comprehensive income for the year - - - 170 - 1,022 1,192
Equity-settled share-based payments charge 29 - - - - - 862 862
Issue of new share capital 2 1,117 - - - - 1,119
Balance at 31 August 2024 87 32,389 1,993 (941) 606 (15,798) 18,336
Consolidated Statement of Cash Flows for the year ended 31 August 2024
Note 2024 2023
£'000 £'000
Cash flows from operating activities
Profit for the year, after tax 1,022 4,547
Adjustments for:
Taxation credit 14 (485) (3,623)
Net finance expense 13 1,539 871
Amortisation of intangible assets 17 5,770 5,287
Depreciation of property, plant, and equipment 18 502 511
Depreciation of right-of-use asset 19 2,830 2,405
Equity-settled share-based payment expense 29 862 629
Exceptional Items 5 - 427
Movement in working capital:
Decrease/(Increase) in inventories 456 (393)
Increase in trade and other receivables (801) (1,222)
(Decrease)/Increase in trade and other payables (631) 2,106
Cash generated from operations 11,064 11,545
Tax paid (1,175) (826)
Net cash from operating activities 9,889 10,719
Cash flows from investing activities
Purchase of intangible assets 17 (6,725) (7,284)
Purchase of property, plant, and equipment 18 (294) (531)
Finance income 13 6 7
Net cash used by investing activities (7,013) (7,808)
Cash flows from financing activities
Lease liability repayments 27 (2,801) (2,538)
Sale of treasury shares - 102
Net receipts from invoice discounting 26 (109) 122
Interest paid (577) (442)
Interest paid on IFRS16 lease liabilities 27 (408) (216)
Cash receipts from issue of share capital 1,119 615
Loan receipts - loan notes 26 1,075 1,185
Loan payments - loan notes 26 (300) -
Net cash used by financing activities (2,001) (1,172)
Foreign currency cash and cash equivalents movements 163 (94)
Net increase in cash and cash equivalents 1,038 1,645
Cash and cash equivalents at beginning of period 8,229 6,584
Cash and cash equivalents at end of period
Cash at bank and in hand 9,267 8,229
Cash and cash equivalents 9,267 8,229
1. 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 2024 or 2023.
Statutory accounts for the years ended 31 August 2023 and 31 August 2024,
which were approved by the Directors on 12 November 2024, have been reported
on by the Independent Auditors. The Independent Auditors' Reports on the
Annual Report and Financial Statements for each of 2023 and 2024 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 2023 have been filed with the
Registrar of Companies. The statutory accounts for the year ended 31 August
2024 will be delivered to the Registrar in due course, and are available from
the Company's registered office at 9th Floor, Regent's Place, 338 Euston Road,
London NW1 3BG 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 UK adopted international accounting
standards and with those parts of the Companies Act 2006 applicable to
companies reporting under IFRS (except as otherwise stated). 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 2023. 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 the consolidated financial
statements.
From our budget base case, a stress scenario of 20% reduction in variable
revenues was performed as well as a severe downside scenario of 90% reduction
in variable revenues. In each of these scenarios, 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. 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 completion of a secondary placing of new Ordinary Shares after year end
raised £5.9m of gross proceeds. This has provided further liquidity to ensure
the Group is able to meet its obligations as they come due. The funds raised
will support the Group's short-term working capital requirements for the
launch of the two aforementioned contract wins, as well as having repaid the
related party loans outstanding of £1.45m in addition to strengthening our
balance sheet.
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, Asia-Pacific, the Middle East
and Africa (AMEA) and North and South America ("the Americas"). 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.
2024 2023
£'000 £'000
Europe 26,379 25,914
Americas 25,006 25,834
AMEA 11,518 11,255
Net Revenue 62,903 63,003
Add back: cost of sales on principal transactions 4,361 3,653
Revenue 67,264 66,656
Europe 10,444 9,207
Americas 604 1,943
AMEA 1,753 854
Adjusted EBITDA 12,801 12,004
Amortisation (5,770) (5,287)
Depreciation (3,332) (2,916)
Share-based payment expense and national insurance (900) (908)
Exceptional items (723) (1,098)
Operating profit 2,076 1,795
Foreign exchange loss (507) (220)
Other net finance expense (1,032) (651)
Profit before taxation 537 924
Taxation credit 485 3,623
Profit for the year 1,022 4,547
Statutory revenue for the Americas and AMEA segments is the same as the Net
Revenue amounts disclosed above. Statutory revenue for the Europe segment was
£30,740k (2023: £29,567k).
The Group's statutory revenue from external corporate clients is generated
from commercial relationships entered into by various Group companies, which,
given the global nature of the Group's service delivery model, may not reflect
the location where the services are delivered, as reflected in the Net Revenue
segmentation noted below.
The Group's statutory revenue is disaggregated into the following revenue
streams. In addition, the Group disaggregates revenue into services where the
Group is considered agent or principal as below:
Segmental reporting continued
2024 2023
£'000 £'000
Direct concierge service revenue 52,835 52,257
Offers and benefits revenue 949 1,170
Indirect concierge service revenue 11,982 11,095
Digital platform revenue 1,498 2,134
Gross revenue 67,264 66,656
2024 2023
£'000 £'000
Corporate revenue 55,282 55,561
Supplier revenue 11,982 11,095
Total revenue 67,264 66,656
Supplier revenue (cost of sales on principal member transactions) (4,361) (3,653)
Net Revenue 62,903 63,003
2024 2023
£'000 £'000
Revenue from services as principal 60,640 61,416
Revenue from services as agent 6,624 5,240
67,264 66,656
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.
Three corporate clients (2023: three) generated more than 10% of total revenue
each during the year ended 31 August 2024. The total combined revenue of these
corporate clients was £24.8m (2023: £23.9m) and was mainly included in the
Europe and Americas segments.
4. Exceptional items
2024 2023
£'000 £'000
Restructuring costs 723 995
Loss on disposal of subsidiary and restructuring - 18
Provision for overseas tax authority costs - 85
723 1,098
The Group recognised an exceptional charge relating to restructuring costs of
£723k (2023: £995k). The cost is made up of redundancy costs incurred during
the year of £723k.
5. Income tax expense
2024 2023
£'000 £'000
Current tax
Foreign taxes related to current year 966 843
Prior year adjustments (152) (169)
Deferred tax
Original and reversal of timing differences 439 1,009
Historical losses recognised (1,738) (5,306)
Total tax credit (485) (3,623)
The tax credit for the year can be reconciled to the income statement as
follows:
2024 2023
£'000 £'000
Profit before taxation 537 924
Expected tax credit based on a corporation tax rate of 25.0% (2023: 21.5%*) 134 199
Effect of expenses not deductible in determining taxable profit 133 60
Effect of taxes related to previous years (152) (169)
Origination and reversal of timing differences 439 1,009
Recognition of historical tax losses (1,738) (5,306)
Overseas tax rate differences 699 584
Taxation credit for the year (485) (3,623)
*A blended rate of 21.5% was used in the prior period following the change in
the corporation tax rate from 19% to 25% on 1 of April 2023
6. Earnings per share
Basic earnings per share 2024 2023
£'000 £'000
Profit attributable to equity shareholders of the parent 1,022 4,547
Weighted average number of ordinary shares in issue (net of treasury) 85,850,877 83,894,193
Basic profit (pence) 1.2p 5.4p
Basic profit per ordinary share
Basic profit per ordinary share is calculated by dividing the net result for
the year attributable to shareholders by the weighted number of ordinary
shares outstanding during the year (2023: 5.2p).
Diluted earnings per share 2024 2023
£'000 £'000
Profit attributable to equity shareholders of the parent 1,022 4,547
Weighted average number of ordinary shares in issue (net of treasury) 89,216,913 86,986,163
Diluted profit per share (pence) 1.1p 5.2p
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 year, the diluted loss per share is
the same as the basic loss per share as the loss has an anti-dilutive effect.
Underlying earnings per share 2024 2023
£'000 £'000
Profit attributable to equity shareholders of the parent 1,022 4,547
Excluding exceptional items and taxes 723 1,098
Exceptional items
Recognition of historical tax losses (1,738) (5,306)
Underlying profit attributable to equity shareholders of the parent 7 339
Basic weighted average number of ordinary shares in issue (net of treasury) 85,850,877 83,894,193
Basic underlying profit per share (pence)
0.0p 0.4p
Diluted weighted average number of ordinary shares in issue (net of treasury)
89,216,913 86,986,163
Diluted underlying profit per share (pence) 0.0p 0.4p
Underlying earnings per ordinary share
Underlying earnings per share is calculated by adjusting the profit
attributable to equity shareholders for exceptional items (note 5) 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.
7. Deferred tax
Deferred Tax 2024 2023
£'000 £'000
Credited/(Charged) to the statement of comprehensive income
Historical losses 1,738 4,999
Movement in other temporary differences (439) (702)
Deferred tax Intangible assets Capital allowances Losses Other temporary differences Total
£'000 £'000 £'000 £'000 £'000
Opening balance as at 1 September 2023 (1,672) 715 4,999 255 4,297
Credited/(Charged) to the statement of comprehensive income
Movement in deferred tax balances (458) 9 - 10 (439)
Utilisation of historical losses - - (639) - (639)
Recognition of historical losses - - 1,738 - 1,738
Closing balance as at 31 August 2024 (2,130) 724 6,098 265 4,957
As at 31 August 2024, the Group has unused tax losses of £54.8m (2023:
£61.1m) that are available for offset against future taxable profits. During
the year ended 31 August 2024, a deferred tax asset has been recognised in
respect of £24.7m of such losses (2023: £21.0m). Due to uncertainty as to
the level and timing of taxable profits in the future, no deferred tax asset
has been recognised in respect of the remaining £30.1m (2023: £40.1m). The
losses that remain unrecognised are not expected to expire. Further
information about the recoverability of the recognised deferred tax asset is
contained in the "Critical Accounting Estimates and Judgements" section of
these notes.
8. Intangible assets
Capitalised development costs Website Total
£'000 £'000 £'000
Cost
At 31 August 2022 41,484 1,909 43,393
Additions 7,284 - 7,284
At 31 August 2023 48,768 1,909 50,677
Additions 6,725 - 6,725
At 31 August 2024 55,493 1,909 57,402
Accumulated amortisation
At 31 August 2022 28,087 1,909 29,996
Charge for the year 5,287 - 5,287
At 31 August 2023 33,374 1,909 35,283
Charge for the year 5,770 - 5,770
At 31 August 2024 39,144 1,909 41,053
Carrying amount
At 31 August 2023 15,394 - 15,394
At 31 August 2024 16,349 - 16,349
All additions are related to internal expenditure. The useful economic lives
of the capitalised development platforms and website are assessed to be
between two to five years.
9. 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.
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. END FR FFSEDEELSEFFRecent news on Ten Lifestyle
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