Ten Lifestyle Group PLC Trading Update and Notice of Half-Year Results (2140F)

TIDMTENG

RNS Number : 2140F

Ten Lifestyle Group PLC

06 March 2020

6 March 2020

Ten Lifestyle Group plc

("Ten" or the "Group")

Trading Update and Notice of Half-Year Results

Ten Lifestyle Group plc (AIM: TENG), a leading technology-enabled global lifestyle and travel platform for the world's wealthy and mass affluent provides a Trading Update and notice of its half-year results, for the six months ended 29 February 2020, which will be announced on Thursday 14 May 2020.

Half Year trading update

 
      --     Adjusted EBITDA (1) is expected to be breakeven, in 
              line with the Board's expectations and a significant 
              improvement on Adjusted EBITDA loss of GBP2.5m in H1 
              FY19, with continuing improvements in operating cost 
              efficiencies. 
      --    Net Cash of c.GBP9.5m at end of February (August 2019: 
             GBP12.3m). 
      --     Continued investment into technology to build service 
              levels, efficiency, competitive advantage and barriers 
              to entry. 
      --     Year on year Net Revenue (2) increase from both existing 
              contracts and new launches, albeit at a lower growth 
              rate than expected as a result of slower pipeline conversion 
              and launch activation. 
      --     Successful launch in the Americas of our largest Extra 
              Large (3) contract win to date; the first full month 
              of the new programme was delivered on schedule in February.

Covid-19 ("Coronavirus") update

As the outbreak of Coronavirus across the world continues, the Board provides an update on the current impact and potential impact on our business:

 
      --     Ten is paid to deliver services which can flex with 
              the needs and demands of our members; Ten's revenue 
              substantially derives from service delivery rather 
              than the conversion of bookings such as a travel or 
              event ticketing stand-alone business. 
      --     We experienced some disruption in our APAC region in 
              January and February and during this period we have 
              been able to support our members in relevant ways, 
              mitigating the financial impact on our business. 
      --     Currently, service activity and member engagement levels 
              remain as expected on a group-wide basis and we are 
              successfully supporting our members with both 'business 
              as usual' requests and other requests related to the 
              Coronavirus. 
      --     Notwithstanding the above, the effects of the Coronavirus 
              outbreak may impact near-term general marketing spend 
              and initiatives, as well as the timing of client launches 
              and we will continue to monitor the impact closely.

As a result of the above, the Board expects a reduction in Net Revenue growth for FY20 compared to expectations. However, the Board expects continuing operational efficiencies to mitigate the impact on adjusted EBITDA and net cash for the year.

(1) On presenting our half-year results, the Board has decided to move from Adjusted EBITA to Adjusted EBITDA as the more relevant profit measure for the operational performance of the business. These results are unaudited.

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

(3) 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. Extra Large contracts are categorised as over GBP5m.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/ 2014. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of Ten by Alan Donald, Chief Financial Officer of Ten.

- End -

For further information, please visit https://www.tengroup.com/ or contact:

 
  Ten Lifestyle Group Plc                         via Tavistock 
   Alex Cheatle, Chief Executive Officer           +44 (0)20 7479 
   Alan Donald, Chief Financial Officer            3427 
  Peel Hunt LLP, Nominated Advisor and Broker 
   Edward Knight 
   George Sellar                                  +44 (0) 20 7418 
   Nick Prowting                                   8900 
  Tavistock, Financial PR & IR 
   Jos Simson 
   Simon Hudson                                   +44 (0) 20 7920 
   Heather Armstrong                               3150

Notes to Editors:

About Ten Lifestyle Group Plc

Ten Lifestyle Group plc is a leading, global travel and lifestyle service, helping wealthy individuals to discover, organise, and enjoy travel, dining, live entertainment, and the world of luxury, cheaper, and quicker than they could themselves.

Underpinned by industry-first technology, Ten provides its trusted travel and lifestyle service to its more than 2 million members, 24/7, 365 days a year, wherever they are in the world. Founded in 1998, the growing business now has over 800 staff, 22 global offices and is listed on the AIM market of the London Stock Exchange (AIM: TENG).

For further information about Ten Lifestyle Group Plc, please go to: https://www.tengroup.com/ .

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 or visit www.rns.com.

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