Ten Lifestyle Group PLC Trading Update and Notice of Half-Year Results (2140F)
March 06 2020 - 2:00AM
UK Regulatory
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/ .
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END
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