19 March 2024
Ten Lifestyle Group plc
("Ten" or the "Group")
H1 2024 Trading Update
· Record H1 Adjusted EBITDA
profitability of £5.3m
· Record Active Members of
356k
· Net Revenue growth of 4% at
constant currency
Ten Lifestyle Group plc (AIM: TENG), the platform
driving customer loyalty for global financial institutions and
other premium brands, announces its trading update for the six
months ended 29 February 2024 ("H1").
Trading
Update
The Group expects to report half year Net
Revenue1 of
c.£30.9m, in line with the first half of the prior year (H1 2023:
£30.9m) and up £1.1m (4%) at constant currency. Active
Members2 continue
to grow, up 13% on first half of the prior year to 356k (H1 2023:
316k). The Group secured and launched some significant contracts
during the period that are expected to generate revenue in the
second half of the year.
Adjusted EBITDA3 for H1 is expected to be
c.£5.3m (H1 2023: £5.0m), up £0.3m (7%) on the prior year, £0.9m
(18%) at constant currency, as the Group benefits from improved
operational efficiencies.
At the end of H1, the Group's cash and cash
equivalents position was c.£8.0m (FY 2023: £8.2m), with net cash of
c.£1.8m (H1 2023: £0.5m; FY 2023: £3.7m). This reflects the Group's
normal seasonality, to consume working capital in the first half of
the year, and the timing of client receipts. The Group expects to
generate net cash in the second half of the year.
The Group has continued its investment in technology,
including generative AI, and proposition throughout the period to
drive improvements in service levels, efficiencies, and Ten's
competitive advantage to drive operating leverage at scale.
Alex Cheatle, CEO of
Ten Lifestyle Group, said:
"We remain focused
on increasing Adjusted EBITDA profitability and cash generation,
with our investments in technology, including generative AI,
creating pathways to improve efficiencies and service levels as we
continue to grow. We also continue to convert our strong pipeline
of new business, with new contract wins and developments expected
to underpin revenue growth in H2 2024."
1 Net Revenue
includes the direct cost of sales relating to certain member
transactions managed by the Group.
2 Individuals holding an eligible product, employment, account
or card with one of Ten's corporate clients are "Eligible Members",
with access to Ten's platform, configured under the relevant
corporate client's programme, with Eligible Members who have used
the platform in the past twelve months becoming "Active
Members".
3 Adjusted
EBITDA is operating profit/(loss) before interest, taxation,
amortisation, depreciation, share-based payment expense, and
exceptional items.
- End -
For further
information please visit www.tenlifestylegroup.com or
call:
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Ten Lifestyle Group
plc
Alex Cheatle, Chief Executive Officer
Alan Donald, Chief Financial Officer
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+44 (0)20 7850
2796
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Singer Capital
Markets Advisory LLP, Nominated Advisor and Broker
Corporate Finance: James Moat / Oliver Platts
Corporate Broking: Tom Salvesen / Charles
Leigh-Pemberton
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+44 (0) 20 7496
3000
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Notes to
Editors:
About Ten Lifestyle
Group Plc
Ten Lifestyle Group
plc partners with global financial institutions and
other premium brands to attract and retain wealthy and mass
affluent customers.
Millions of members have access to Ten's services
across lifestyle, travel, dining, entertainment and retail benefits
on behalf of over fifty clients including HSBC, Coutts and Royal
Bank of Canada. Ten's partnerships are based on multi-year
contracts generating revenue through platform-as-a-service and
technology fees.
Ten's operations are underpinned by an increasingly
sophisticated personalisation platform comprising industry-first,
proprietary technology, thousands of supplier relationships and 25
years of proprietary expertise delivered from over 20 global
offices.
Ten is on a mission to become the most trusted
service platform in the world.
For further information please go
to: www.tenlifestylegroup.com.
