TIDMTENG
RNS Number : 2816H
Ten Lifestyle Group PLC
23 November 2022
Embargoed: 07:00hrs 23 November 2022
Ten Lifestyle Group plc
("Ten", the "Company" or the "Group")
Preliminary results for the year ended 31 August 2022
Ten Lifestyle Group plc (AIM: TENG), the 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 2022.
Financial highlights
-- Record Net Revenue (1) , up 35% to GBP46.8m (2021: GBP34.7m), ahead of pre-COVID-19 levels
o corporate revenue (2) up 29% to GBP41.1m (2021: GBP31.9m)
o supplier revenue (3) up 104% to GBP5.7m (2021: GBP2.8m)
-- Adjusted EBITDA (4) up 11% to GBP4.9m (2021: GBP4.4m)
-- Loss before tax down 31% to GBP(3.8)m (2021: GBP(5.5)m)
-- Cash at GBP6.6m, net cash at GBP3.2m (2021: GBP6.7m), with
GBP3.4m debt raised in the year to support working capital
requirements
Operational highlights
-- Number of Material Contracts (5) up 17% to 28 (2021: 24)
o retained all Material Contracts for third year running
o a new Large contract with Credit Saison, a leading credit card
issuer in Japan, and Medium contracts with one of the UK's largest
wealth managers, DNB Bank and Morgan Stanley, all launched with the
Ten Digital Platform
-- Active Members (6) up 36% to 275k (2021: 203k (7) )
-- Maintained high levels of member satisfaction (8) which
drives repeat use and value to our corporate clients
-- GBP13.6m (2021: GBP11.5m) invested in proprietary digital
platforms, communications and technologies to enhance member
experience and create competitive advantage
o 80% of Material Contracts have now launched with the Ten
Digital Platform (2021: 64%)
o Ten Digital Platform live with 35 corporate client brands
(2021: 27) which drives engagement and service quality
Current Trading and Outlook
We expect demand and related revenue will continue to increase
from existing Active Members and "first time users" from our
Eligible Member base. Notwithstanding the impacts of economic
conditions on individual member households, our corporate clients
pay us to improve the engagement of their wealthiest customers,
with banking corporate clients typically seeing improved
profitability of these customers due to higher interest rates. We
expect to continue to convert our strong pipeline of contract
opportunities with global financial institutions and premium
brands.
Supplier revenue is our second income stream and accounts for
12% of Net Revenue (2021: 8%). In the final quarter of 2022 and the
first two months of 2023, we have benefited from record levels of
supplier revenue, materially ahead of the levels of the
pre-COVID-19 year in 2019.
We remain focused on continuing to increase both Net Revenue and
Adjusted EBITDA, as well as maintaining a positive cash position.
We plan to maintain our investment in our proprietary technology,
communications, and content, which provides competitive advantage.
Loans raised to date will continue to support the Group's working
capital requirements and we expect cash generation in H2 2023.
Trading to date, our high corporate client retention rates,
strong service levels, increasing supplier revenue, improving
profitability, healthy sales pipeline and continued investment to
improve our technology and proposition mean that, although early in
the year, we are optimistic about another year of good progress and
believe we will meet the Board's expectations for the year.
Alex Cheatle, CEO of Ten Lifestyle Group, said;
"We have reported sustained improvements in Net Revenue and
Adjusted EBITDA profitability as a result of our continued
investment in our proposition, technology and people. We expect our
growth engine will continue this progress into the year ahead."
1 Net Revenue excludes 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 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 GBP0.25m); Medium contracts (between
GBP0.25m and GBP2m); Large contracts (between GBP2m and GBP5m); and
Extra Large contracts (over GBP5m). 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".
6 Active Members are members of Ten that have used the service
at least once in the past twelve months.
7 The number of Active Members in the prior years has been
recalculated using a more accurate measure of member eligibility,
consistent with the definition of Active Members.
8 Ten measures member satisfaction using the Net Promoter Score
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 23 November 2022. To attend, please email
investorrelations@tengroup.com
Dial-in details for the presentation are also available:
Dial-in number: +44 203 481 5240
Meeting ID: 846 6428 3711
Investor Presentation
The Group will also be presenting an Investor Webinar for
current and prospective investors at 5:30pm on 30 November
2022.
If you would like to attend either event, please email
investorrelations@tengroup.com .
For further information please visit www.tenlifestylegroup.com/
or call:
Ten Lifestyle Group plc
Alex Cheatle, Chief Executive Officer +44 (0)20 7850
Alan Donald, Chief Financial Officer 2796
Peel Hunt LLP, Nominated Advisor and Broker
Paul Gillam +44 (0) 20 7418
J ames Smith 8900
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, Morgan Stanley
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 22 global
offices.
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
Chairman's Statement
Overview
Ten has achieved record levels of Net Revenue and Adjusted
EBITDA profitability. This is testament to the strength of the
underlying business model, which enabled us to ride out the
re-emergence of COVID-19 in the first half of the year and deliver
strong results in the second half of the year. Overall Net Revenue
was up 35% to GBP46.8m (2021: GBP34.7m) and Adjusted EBITDA up 11%
to GBP4.9m (2021: GBP4.4m).
We made significant progress towards our mission to become the
world's most trusted service, further strengthening our ability to
attract and retain wealthy and mass affluent customers for global
financial institutions and other premium brands. We continued to
invest in our industry-first, proprietary technology,
communications, and content (2022: GBP13.6m; 2021: GBP11.5m) to
drive growth and differentiate ourselves in the market. We have
scale in many of the world's major economies and are proud of our
ability to deliver our increasingly sophisticated personalisation
platform from 22 global offices, with thousands of integrated
supplier partners and 25 years of industry expertise into our
service.
Over 275k Active Members use Ten's platform (2021: 203k), with
millions more eligible to access Ten's lifestyle, travel, dining,
entertainment, and retail benefits on behalf of over 50 corporate
clients.
We continued to retain all of our Material Contracts for the
third year running, and grew the overall revenue derived from
existing contracts. We believe our established corporate clients
increasingly value our platform. Many now pay Ten to deliver
technology integration, personalisation and unique content projects
that enhance member experience, drive efficiencies, and strengthen
Ten's position as their trusted concierge technology partner. We
have forged important new strategic partnerships throughout the
year, with 80% of corporate clients with Material Contracts opting
to include the Ten Digital Platform as part of their customer
loyalty proposition (2021: 64%).
Our technology also underpins Ten's competitive strategy as the
partner of choice for a growing number of global financial
institutions and other premium brands wanting to attract and retain
wealthy and mass affluent customers. Continued investment in
technology, strategic partnerships and our people has strengthened
our resilience and enabled the Group to build healthy foundations
for growth through an improved service and corporate client
proposition whilst also achieving further efficiencies.
Strategy
Throughout the year, we continued to realise our vision of
building a valued service that drives customer loyalty for our
corporate clients by continuing to provide preferred access to a
range of premium services to our members helping them to better
organise their travel, dining, entertainment, and other lifestyle
needs. We have continued to optimise our market-leading proprietary
platform (the "Ten Digital Platform") and leveraged our buying
power across thousands of supplier partners. The service platform
is supported by 25 years of expertise, delivered by Lifestyle
Managers 24 hours a day in over 15 languages. Our Net Promoter
Score (NPS) tells us and our corporate clients, that members are
positively impacted by having access to Ten's service platform and
Lifestyle Managers.
Ten is a leading customer loyalty partner for global financial
institutions and premium brands. We believe that our ability to
build verifiable customer loyalty propositions encourages new and
existing corporate clients to invest in Ten's increasingly
sophisticated personalisation platform to improve the profitability
and loyalty of their most valuable customers. This enables us to
invest back in technology, content, and service quality, enhancing
the member proposition and further driving the growth engine at the
heart of Ten's business model.
The Group continues to benefit from existing and new
partnerships with corporate clients, primarily in the financial
services sector. We are also working with other premium brands,
which are seeking to improve the engagement, retention, and
acquisition of their most valuable customers. The Group also offers
individuals the opportunity to access its services through a
private membership proposition, although this is currently a very
small part of our total business.
Ten's unique member proposition provides access to a wide range
of benefits and experiences across key consumer markets, notably
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. This means our members can achieve better and more
cost-effective outcomes, more conveniently than they could on their
own.
The member proposition is made available to search and book
online though Ten's market-leading lifestyle and travel proprietary
"Ten Digital Platform", or through our expert Lifestyle Managers by
phone, email, live chat, and WhatsApp.
Results
Net Revenue grew by 35% to GBP46.8m (2021: GBP34.7m), driven by
increased member activity as the effects of COVID-19 eased
throughout the period in most regions. The emergence of the Omicron
variant of COVID-19 during the first half of the year resulted in a
temporary reduction in member activity and revenue growth, with the
Group achieving a strong recovery in the second half of the year
and closing the period with record Net Revenue and a healthy and
increasing run-rate.
Delivering 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.
The Group secured new contract wins during the year, including a
new Large contract with Credit Saison, a leading credit card issuer
in Japan, and Medium contracts with one of the UK's largest wealth
managers, DNB Bank in Norway and Morgan Stanley in the Americas,
all of which launched in the year with the Ten Digital
Platform.
The Group retained all of its Material Contracts and entered new
agreements with existing corporate clients for multi-year contract
extensions, significant expansions, and paid-for projects to
customise the Ten Digital Platform. These included a multi-year
contract with St. James's Place, a FTSE-100 wealth management
business, following a successful pilot, a content as a service
contract with an existing corporate client to increase member
engagement and a paid-for project with an existing corporate client
to customise the Ten Digital Platform and content under its brand.
The new contracts won and launched in the period and growth of
existing mandates have contributed to a record number of Active
Members.
People and ESG
The Group continues to benefit from a stable, founder-led
executive management team which has shown strong leadership,
innovation, and resilience to grow the business in all regions
following the challenges posed by COVID-19. We take pride in our
track record of developing our people through our Ten Academy and
Ten's Global Leadership Programme, a global, twelve-months internal
development programme aimed at developing the Group's future
leaders. By nurturing an employee culture based on our principles
of transparency, education, promotion and engagement, our DEI
Programme continues to support our diverse, global workforce and
helps us attract, retain, and develop the best talent.
In order to manage the increased levels of demand we brought
staff back from COVID-19 schemes (e.g., furlough and Kurzarbeit) at
the start of the year and hired new staff. As well as adding expert
Lifestyle Managers to support growing member programmes, mainly in
the Americas, we have bolstered our business support teams, which
are now predominantly based in Cape Town, as well as our
technology, content, and product teams.
We remain committed to building a sustainable business and are
more aware then ever of the impact our business and members have on
the world around us. The ESG Working Group formed last year under
the leadership of Jules Pancholi, Non-Executive Director, has
assessed the material risks and opportunities arising from ESG
issues and has made solid progress addressing them. In a step that
further demonstrates the Board's commitment, we have also applied
to become a B Corp this year, following a well-supported resolution
passed by our shareholders to adopt an amendment to our Articles of
Association in July 2022. Becoming B Corp certified would further
cement our commitment to growing a sustainable business and will
have significant positive effects on the Company and
stakeholders.
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: "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."
I am pleased to report that we have delivered Net Revenue and
Adjusted EBITDA growth, whilst investing in the digitally led
proposition, which has been launched with four Material Contracts
in the year. We have taken on a modest level of debt to support our
working capital requirements as we continue to show substantial
growth and launch new programmes.
We maintain strong relationships with our existing corporate
clients because we have proven our value in helping corporate
clients engage, retain, and acquire their most valuable customers.
The growth engine at the heart of Ten's business model continues to
prove itself with sustained increases in Net Revenue and EBITDA
profitability, alongside high service levels and improved
technology solutions.
Bruce Weatherill
Independent Non-Executive Chairman
22 November 2022
Chief Executive's statement
Overview
The "growth engine" at the heart of our business continues to
prove itself. In the year, we achieved record levels of Net
Revenue, Active Members and Adjusted EBITDA, whilst continuing to
invest in proprietary technology and other innovations. By
maintaining service quality across our high-touch and digital
platforms, which drives commercial results for our corporate
clients, we have continued to retain 100% of our Material Contracts
for the third year running and launched new Material Contracts in
each of our three global regions.
We faced challenges during the year, including the emergence of
the Omicron variant of COVID-19 during the first half of the year,
leading to a short-term reduction in member activity and related
revenue. This caused a reduction in Adjusted EBITDA in the first
half of the year as we carried the cost of retaining staff hired
during an earlier period of increased activity.
Despite this, I am delighted that the business performed
increasingly well during the second half of the year and closed the
period with a strong revenue run-rate, improved Adjusted EBITDA and
an enhanced digitally enabled service platform.
I am proud of how our people across 22 offices globally have
continued to dedicate themselves to delivering high-quality
services to our members and corporate clients, including our newly
hired staff who trained diligently to become fully productive in
their new roles. I would like to express my thanks to our
outstanding management team, which continues to drive the business
successfully towards our mission of becoming the world's most
trusted service.
Record Net Revenue and profitability
Our market-leading digital capabilities differentiate us from
our competition and have enabled us to achieve record Net Revenue
and Adjusted EBITDA profitability, with Net Revenue up 35% to
GBP46.8m (2021: GBP34.7m) and Adjusted EBITDA 11% to GBP4.9m (2021
GBP4.4m) on prior year.
Revenue from our corporate clients was up 29% to GBP41.1m (2021:
GBP31.9m) due to the increase in member activity (paid for by our
corporate clients) and revenue from new contracts, including the
four Material Contracts launched in the year. Revenue from our
supplier partners, mainly commission related to our member's
travel, was up 104% to GBP5.7m (2021: GBP2.8m).
Adjusted EBITDA for the year was up 11% to GBP4.9m (2021:
GBP4.4m), driven by improved efficiencies in the second half of the
year, once the staff hired at the start of the year became
productive. Cash generated by operations was GBP4.8m (2021:
GBP4.0m), while operating expenses and other income increased to
GBP41.9m (2021: GBP30.3m) principally driven by headcount required
to service the uplift in member activity. The Group finished the
year with a net cash position of GBP3.2m after deducting GBP3.4m of
debt raised in the year to support working capital requirements,
meaning the Group finished the year with GBP6.6m of Cash and cash
equivalents (2021: GBP6.7m).
REGIONAL ANALYSIS
EMEA
In EMEA, we continued to develop our services offered to members
and corporate clients in our most mature markets and expanded into
maturing markets in the Middle East, Italy, and Scandinavia.
Regional Net Revenue grew by 21% because of increased member
activity, new contracts, and increased member engagement. Several
Material Contracts with flagship corporate clients increased their
budgets during the period, having previously reduced or frozen them
in response to COVID-19.
We retained all Material Contracts and we won new corporate
clients, including one of the UK's largest wealth managers. We
further expanded our contract with DNB Bank in Norway by launching
Ten's digital concierge services to additional customer groups and
expanded other key contracts with corporate clients in the
region.
The additional cost of staff hired in the first half of the
year, who we retained during the dip in member activity caused by
the impact of the Omicron variant of COVID-19, meant Adjusted
EBITDA fell to GBP0.9m in H1 when compared to the same period in
the prior year (H1 2021: GBP1.7m). However, the new staff became
fully utilised in the second half of the year, with a return to
member activity and revenue growth, leading to a strong Adjusted
EBITDA recovery to GBP4.0m in H2 (H2 2021: GBP2.7m) and full year
Adjusted EBITDA of GBP4.9m (2021: GBP4.4m).
The conflict in Ukraine has had limited impact on Ten's core
service categories in the region. Ten's Moscow office, which
contributed <1.5% of the Group's Net Revenue in H1 2022, closed
on 9 March 2022. The Group incurred one-off costs of closure
expenses associated to the disposal of Ten's Russian subsidiary of
GBP519k.
Americas
I am delighted that we have reduced the EBITDA loss by GBP1.5m
to GBP(0.7)m (2021: GBP(2.2)m) for the fourth year running. In the
second half of the year, we achieved a modest positive Adjusted
EBITDA for the first time since listing, because of growing scale
and maturity in the region. Achieving profitability in the region
has been a key objective for Ten.
The Americas also achieved the highest rate of growth in the
Group, with Net Revenue up 67% on prior year, due to the healthy
growth of existing contracts and new contract wins. Notably, we won
our first Medium contract with Morgan Stanley, one of the world's
largest private banks and wealth managers.
Member demand increased throughout the year, with Net Revenue
doubling in the second half of the year when compared to the same
period of the prior year. Staff hired to deliver on such high rates
of growth are fully trained, effective, and efficient within a few
months, which helps to improve EBITDA performance further.
APAC
In APAC, Net Revenue grew by 25% and Ten achieved positive
Adjusted EBITDA of GBP0.1m (2021: GBP0.5m), despite sporadic
COVID-19 restrictions in the various parts of the region, notably
in China. We retained all Material Contracts and launched a Large
contract with Credit Saison, a leading credit card issuer in
Japan.
We continued to see less international travel and fewer large
live events in APAC than in other regions, which, together with
occasional local lockdowns, suppressed demand for our core dining
and lifestyle services.
Our investment in technology and content continues to drive our
market-leading digital capability
We continued to benefit from the quality, operational and
competitive advantages of our digital capability. Despite cost
pressures, we took the decision to maintain our investment in
technology, communications, and content, with GBP13.6m invested in
the year (2021: GBP11.5m). We believe that our market-leading
digital capability clearly differentiates us from our competition
and underpins our long-term "growth engine" strategy to become the
world's most trusted service.
In the year, this investment enabled us to achieve key
milestones in our digital roadmap. These developments enabled us to
continue to roll out our Ten Digital Platform, which is now live
with 80% of our Material Contracts and with 30% more corporate
client brands than the previous year. We believe corporate clients
are increasingly opting to customise and integrate the Ten Digital
Platform to achieve increased efficiencies and support their
digital engagement strategy.
Stronger member proposition, satisfaction, and engagement
In the year we have strengthened our core propositions. The more
attractive and accessible our proposition is to new and existing
members, the more they engage with, use and advocate for our
service. Member engagement and satisfaction are key to building
value for corporate clients, which want to improve the engagement,
retention, and acquisition of their most valued customers. This
justifies increased corporate spending with us and encourages new
corporate clients and new supplier partners to work with us.
We are delighted to have achieved another strong year of member
satisfaction, as measured by Net Promoter Score (NPS).
We believe that our member satisfaction levels and strengthened
member proposition have resulted in an increase in repeat usage of
our service and growing numbers of Active Members using the
service. These metrics also help us demonstrate the return on
corporate client investment in the service, which contributes to
the high levels of corporate client retention.
Summary
We have retained all our Material Contracts for the third year
running and have launched four new Material Contracts during the
year.
We believe our competitive position is stronger than ever,
backed by a market-leading member proposition, which delivers a
strong return on investment for 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.
Our sales pipeline is robust, and we have maintained our record
of never losing a Material Contract where we have launched our Ten
Digital Platform. By developing the platform, and in turn our
corporate clients, we have grown Net Revenue by 35% during the
year, and this growth accelerated in the second half to 49% when
compared with the same period of the prior year.
We have maintained investments in technology, content, and
supplier partnerships, 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 delivering record levels of Adjusted EBITDA
profitability, which increased throughout the second half of the
year. Across the year we report Adjusted EBITDA of GBP4.9m (2021:
GBP4.4m), with second half Adjusted EBITDA performance of GBP4.0m
(H2 2021: GBP2.7m).
I am proud of the strong "trusted expert" culture at Ten, our
member focus and our successful innovation, which have led to these
record results.
Alex Cheatle
Group Chief Executive Officer
22 November 2022
Financial review
Net Revenue grew by 35% to GBP46.8m (2021: GBP34.7m). Despite
the impact of the Omicron variant of COVID-19 in the first half of
the year, we experienced a strong recovery in activity in the
second half of the year. Adjusted EBITDA profitability of GBP4.9m
(2021: GBP4.4m) was driven by improved profitability in H2 of
GBP4.0m (2021: GBP2.7m) compared to GBP0.9m (2021: GBP1.7m) in
H1(9) .
GBPm 2022 2021
GBPm GBPm
Revenue 48.7 35.1
Corporate revenue 41.1 31.9
Supplier revenue 5.7 2.8
Net Revenue 46.8 34.7
Operating expenses and other income (41.9) (30.3)
-------------------------------------------- ------ -------
Adjusted EBITDA 4.9 4.4
Adjusted EBITDA % 11.4% 12.8%
Depreciation (2.7) (3.2)
Amortisation (4.6) (4.0)
Share-based payments (0.5) (1.6)
Exceptional items charge (0.8) (0.6)
-------------------------------------------- ------ -------
Operating loss before interest and tax (3.7) (5.0)
Net finance expense and FX (0.1) (0.5)
------ -------
Loss before taxation (3.8) (5.5)
Taxation charge (0.5) (0.2)
-------------------------------------------- ------ -------
Loss for the period (4.3) (5.7)
Loss % over Revenue (8.8)% (16.5)%
Net Cash, (defined as Cash less borrowings) 3.2 6.7
9 Half year figures are unaudited.
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 for the twelve months to 31 August 2022 was
GBP46.8m, up 35% compared to the prior year. Revenue for the twelve
months to 31 August 2022 was GBP48.7m, up 39% on the twelve months
to 31 August 2021. 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 uplift in Net Revenue of 35% was principally driven by
increased activity as the world economy opened up post COVID-19.
There was an impact on the business in the first half due to the
outbreak of the Omicron variant; however, we experienced a
significant uplift in member activity in the second half of the
year driving both our corporate and supplier revenue.
Our corporate revenue (paid by our corporate clients to service
their customers) increased year on year by 29%, with a Net
Corporate Revenue Retention Rate (10) of 120% (2021: 75%)
supporting this growth. Our supplier revenue (predominantly travel
related) increased by 104% to GBP5.7m (2021: GBP2.8m). The table
below highlights the impact of COVID-19 on our Net Revenues and the
subsequent recovery in this financial year. Note H1 2020 was
pre-COVID-19.
Net Revenue 2022 2021 2020
GBPm GBPm GBPm
------------- ------ ------ ------
H1 20.7 17.2 23.8
H2 26.1 17.5 20.5
------------- ------ ------ ------
Total 46.8 34.7 44.3
------------- ------ ------ ------
10 Net Corporate Revenue Retention Rate is the annual percentage
change in corporate revenue, less non-recurring revenue (i.e.,
non-recurring service fees, implementation fees and fees for the
customisation of the Ten Digital Platform), from corporate client
programmes operating in the previous year.
Contract analysis
The following tables set out an analysis of our contracts by
size and by region. We have analysed only our Material
Contracts
Contract
by Size 2022 2021 change
------------ ---- ---- ------
Extra Large 3 3 -
Large 6 5 +1
Medium 19 16 +3
------------ ---- ---- ------
28 24 +4
------------ ---- ---- ------
Contract
by region 2022 2021 change
----------- ---- ---- ------
EMEA 10 8 +2
Americas 11 10 +1
APAC 6 5 +1
Global 1 1 -
----------- ---- ---- ------
28 24 +4
----------- ---- ---- ------
During the financial year, we won and launched two Medium
contracts in EMEA, a Medium contract in Americas and a Large
contract with Credit Saison, a leading credit card issuer in
Japan.
Regional analysis
While there is a clear overlap between the geographic location
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 2022 2021 % change
GBPm GBPm
------------- ------ ------ ---------
EMEA 21.9 18.1 21%
Americas 16.5 9.9 67%
APAC 8.4 6.7 25%
------------- ------ ------ ---------
46.8 34.7 35%
------------- ------ ------ ---------
In EMEA Net Revenue increased by 21%. There was a strong
increase in activity in the first quarter of the year until the
winter resurgence of COVID-19 impacted activity from November 2021
through to February 2022. We then saw a return to increased
activity especially in travel in the second half of the year as the
world economies opened up.
In the Americas, we saw a significant increase in Net Revenue of
67%. Member activity increased and in particular in respect of the
Extra Large contract launched in February 2020, just as COVID-19
impacted the region.
In APAC, Net Revenue grew by 25% principally due to the launch
at the beginning of the financial year a Large contract with Credit
Saison. The base business remained relatively subdued from an
activity perspective as COVID-19 restrictions in the region
continued longer than in the rest of the world.
Operating expenses and other income
Operating expenses and other income increased by GBP11.6m to
GBP41.9m (2021: GBP30.3m). The increase in cost was principally
driven by headcount required to service the uplift in activity
across the business. Average headcount in the year has grown by 34%
to 1,101 (2021: 824). We continued to closely monitor costs, in
particular assessing our office space requirements as we moved to a
hybrid model of working across all regions.
Regional Adjusted EBITDA
Adjusted EBITDA is after expenses, other than depreciation of
GBP2.7m (2021: GBP3.2m), amortisation of GBP4.6m (2021: GBP4.0m),
and share-based payment and exceptional items expenses of GBP1.3m
(2021: GBP2.2m). On this basis, Adjusted EBITDA was GBP4.9m (2021:
GBP4.4m).
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 2022 2021
EBITDA GBPm GBPm
---------- ------ ------
EMEA 5.5 6.1
Americas (0.7) (2.2)
APAC 0.1 0.5
---------- ------ ------
Total 4.9 4.4
EMEA
Adjusted EBITDA of GBP5.5m (2021: GBP6.1m) is a reduction year
on year of GBP0.6m. The reduction in profitability was driven by
our decision to maintain headcount through the winter resurgence of
COVID-19 to ensure we had sufficient resources ready for the uplift
in activity, which subsequently came through in the second half of
the year.
Americas
The Americas region Adjusted EBITDA loss has decreased by
GBP1.5m to GBP(0.7)m (2021: GBP(2.2)m). The reduced loss was driven
by the strong uplift in Net Revenues particularly in the second
half of the year. This increase in activity and Net Revenue meant
that the region moved into profitability in the second half of the
year.
APAC
The APAC region Adjusted EBITDA of GBP0.1m (2021: GBP0.5m) was a
reduction of GBP0.4m due to activity continuing to be subdued
across the region for most of the year with various lockdown
measures in place across most of the region. However, we did see
some signs of recovery towards the end of the year.
Amortisation
Amortisation costs, relating to the internal platform (TenMAID)
and the member-facing platforms, were GBP4.6m in 2022 (2021:
GBP4.0m) reflecting continued investment in technology to drive
improvements in service levels, efficiency, and competitive
advantage.
Net finance expense
Net finance expense in the year was GBP0.1m (2021: GBP0.5m); the
expense included IFRS 16 lease interest expense of GBP0.1m as well
as foreign exchange gains on the translation of inter-company
balances in the year of GBP0.2m (2021: GBP(0.2)m).
Share-based payments
The share-based payments expense in the year was GBP0.5m (2021:
GBP1.6m). These related to share-based payments expense reflecting
share grants made under management incentive plans (see note 28).
The prior year charge was higher due to the granting of salary
sacrifice scheme options as part of our cost savings through
COVID-19.
Exceptional items expense
The exceptional items expense was GBP0.8m (2021: GBP0.6m). On 10
June 2022 the Group disposed of the Russian subsidiary Ten Group
(RUS) LLC, incurring closure costs associated to the disposal of
GBP0.5m. In addition, the Group recognised a provision of GBP0.3m
related to an ongoing review of overseas taxes and penalties. Prior
year exceptional items included an impairment expense of GBP0.4m
and project costs of GBP0.2m.
Loss before tax
The loss before tax reduced to GBP(3.8)m from GBP(5.5)m in
2021.
Taxation
The taxation expense for the year was GBP0.5m (2021: GBP0.2m)
which related to tax liabilities and payments in relation to
overseas entities which, recorded a statutory profit.
Loss per share
The total comprehensive loss for the year was GBP(4.5)m (2021:
GBP(5.8)m), resulting in a loss per share (excluding treasury
shares) of 5.2p (2021: loss per share of 7.2p). The Board does not
recommend the payment of a dividend.
Group cash flow
GBPm 2022 2021
GBPm GBPm
Loss before tax (3.8) (5.5)
Net finance expense 0.1 0.5
Working capital changes (0.1) 0.7
Forgiven US PPP loan - (1.0)
Non-cash items (share-based payments, depreciation,
amortisation and exceptional items) 8.6 9.3
----------------------------------------------------- ------ ------
Cash generated from operations 4.8 4.0
Capital expenditure (0.9) (0.2)
Investment in intangibles (6.4) (5.4)
Taxation (0.6) (0.5)
----------------------------------------------------- ------ ------
Cash outflow (3.1) (2.1)
Cash flows from financing activities
Sale of treasury shares 0.5 -
Receipts on exercising of options 1.4 0.9
Loan receipts 3.4 -
Repayment of leases and net interest (2.7) (2.9)
----------------------------------------------------- ------ ------
Net cash from/(used in) financing activities 2.6 (2.0)
Foreign currency cash and cash equivalents
movements 0.4 (0.2)
----------------------------------------------------- ------ ------
Net decrease in cash and cash equivalents (0.1) (4.3)
----------------------------------------------------- ------ ------
Cash and cash equivalents 6.6 6.7
----------------------------------------------------- ------ ------
Net Cash (Defined as Cash less borrowings) 3.2 6.7
Cash generated by operations was GBP4.8m (2021: GBP4.0m).
Non-cash items in the year of GBP8.6m (2021: GBP9.2m) included the
increased amortisation charges, offset by a reduction in
depreciation charge relating to IFRS 16 Right-of-Use assets as well
as a reduced Share Based Payment charge with less options granted
during the year. The expenditure capitalised on IT equipment and
infrastructure was GBP0.9m (2021: GBP0.2m), and on the Ten Digital
Platform and TenMAID totalled GBP6.4m (2021: GBP5.4m) as we
continue to invest in our technology. Net cash from financing
activities is primarily due to loan receipts of GBP3.4m, of which
GBP1.5m was from a related party loan, share option receipts of
GBP1.4m, and sale of treasury shares of GBP0.5m offset by IFRS 16
lease payments and interest of GBP2.7m. This has led to an overall
decrease in cash of GBP0.1m during the year with a decrease in Net
Cash to GBP3.2m.
Group balance sheet
GBP'm 2022 2021
------------------------------- ------- -------
Intangible assets 13.4 11.6
Property, plant and equipment 0.9 0.6
Right-of-use assets 2.2 2.6
Cash 6.6 6.7
Other current assets 10.1 5.8
Lease liabilities (1.8) (1.5)
Current liabilities (17.3) (12.2)
Short term borrowings (1.5) -
Long-term borrowings (1.9) -
Other non-current liabilities (0.9) (1.7)
------------------------------- -------
Net assets 9.8 11.9
------------------------------- ------- -------
Share capital/share premium 30.7 29.4
Reserves (20.9) (17.5)
------------------------------- ------- -------
Total equity 9.8 11.9
------------------------------- ------- -------
Net assets were GBP9.8m (2021: GBP11.9m). The reduction in the
year is driven by short term borrowings of GBP1.5m (2021:GBPnil)
and long-term borrowings of GBP1.9m (2021: GBPnil) taken out during
the year. This is to ensure the Group has sufficient working
capital to support the growth in the business.
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:
2022 2021 2020 2019
Net Revenue (GBPm) 46.8 34.7 44.2 45.8
Corporate revenue(GBPm) 41.1 31.9 40.9 40.3
Supplier revenue(GBPm) 5.7 2.8 3.3 5.5
Net Revenue growth % 35.0% -21.6% -3.5% 23.0%
Adjusted EBITDA (Pre-IFRS16) (GBPm) -- -- -- -3.3
Adjusted EBITDA (GBPm) 4.9 4.4 4.8 --
Cash and cash equivalents (GBPm) 6.6 6.7 10.0 12.3
Net Cash (GBPm) 3.2 6.7 10.0 12.3
Material Contracts 28 24 23 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, technology updates. As described above, the Group's
performance against its KFPIs had been impacted by the effects of
COVID-19. Net Revenue recovered in the year and is now above
pre-COVID, FY 2019 Net Revenue, whilst Adjusted EBITDA was broadly
maintained over the last three years.
Going concern
The impact of plausible adverse macroeconomic scenarios on Ten's
business still warrants focus and real-time management. The Group
is particularly exposed to the adverse impacts to variable revenues
from these scenarios as well as the risk of corporate revenue
contracts not being renewed.
The Group has set its budget for 2023, and forecast for the
following year but 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.
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:
-- increased the size of a programme in Latin America from the
equivalent of a Medium contract to the equivalent of a Large
contract due to member engagement exceeding expectations, leading
to an additional commitment from the corporate client to expand the
programme
-- raised a further GBP385k of loans with interest payable
quarterly in arrears in cash at 8% per annum during the term of the
loan, a 1% administration fee payable in cash at drawdown,
repayable on 25 August 2025
-- extended the exercise periods of remaining options granted
under the Salary Sacrifice Scheme established as a cost saving
initiative in response to COVID-19 from two or three years to four
years from the respective date of grant
Alan Donald
Chief Financial Officer
22 November 2022
Consolidated Statement of Comprehensive Income
for the year ended 31 August 2022
Note 2022 2021
GBP'000 GBP'000
Revenue 3 48,651 35,059
Cost of sales on principal member transactions (1,839) (394)
--------- ---------
Net Revenue 3 46,812 34,665
Other cost of sales (1,428) (797)
Gross profit 45,384 33,868
Administrative expenses (49,519) (40,232)
Other income 386 1,380
Operating profit before amortisation, depreciation,
interest, share based payments, exceptional
items and taxation ("Adjusted EBITDA") 4,878 4,431
Depreciation (2,713) (3,186)
Amortisation 5 (4,608) (3,957)
Share-based payment expense (537) (1,627)
Exceptional items 4 (769) (645)
----------------------------------------------------- ----- --------- ---------
Operating loss (3,749) (4,984)
Finance income 1 1
Finance expense (102) (554)
--------- ---------
Loss before taxation (3,850) (5,537)
Tax expense (466) (237)
--------- ---------
Loss for the year (4,316) (5,774)
========= =========
Other comprehensive expense:
Foreign currency translation differences (137) (5)
Total comprehensive loss for the year (4,453) (5,779)
========= =========
Basic and diluted loss per ordinary share (5.2)p (7.2)p
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
2022
Company No: 08259177
Note 2022 2021
GBP'000 GBP'000
Non-current assets
Intangible assets 5 13,397 11,555
Property, plant and equipment 939 561
Right of use assets 2,274 2,601
Total non-current assets 16,610 14,717
--------- -----------
Current assets
Inventories 118 98
Trade and other receivables 9,930 5,707
Cash and cash equivalents 6,584 6,662
-----------
Total current assets 16,632 12,467
--------- -----------
Total assets 33,242 27,184
========= ===========
Current liabilities
Trade and other payables (16,459) (11,487)
Provisions (846) (568)
Borrowings (1,500) -
Lease liabilities (1,834) (1,504)
Total current liabilities (20,639) (13,559)
--------- -----------
Net current liabilities (4,007) (1,092)
========= ===========
Non-current liabilities
Borrowings (1,940) -
Lease Liabilities (820) (1,678)
Total non-current liabilities (2,760) (1,678)
--------- -----------
Total liabilities (23,399) (15,237)
========= ===========
Net assets 9,843 11,947
========= ===========
Equity
Called up share capital 84 82
Share premium account 30,658 29,356
Merger relief reserve 1,993 1,993
Treasury reserve 513 5
Foreign exchange reserve (547) (410)
Retained deficit (22,858) (19,079)
Total equity 9,843 11,947
========= ===========
Consolidated Statement of Changes in Equity for the year ended
31 August 2022
Note Share Share Merger Foreign Treasury Retained Total
capital premium relief exchange reserve deficit
account reserve reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
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)
Issue of new share
capital 1 876 - - - - 877
Shares purchased by
Employee Benefit Trust
(EBT) - - - - (10) - (10)
Equity-settled share-based
payments charge - - - - - 1,626 1,626
Balance at 31 August
2021 82 29,356 1,993 (410) 5 (19,079) 11,947
Loss for the year - - - - - (4,316) (4,316)
Foreign exchange - - - (137) - - (137)
Total comprehensive
loss for the year - - - (137) - (4,316) (4,453)
Shares sold by Employee
Benefit Trust (EBT) - - - - 508 - 508
Equity-settled share-based
payments charge - - - - - 537 537
Issue of new share
capital 2 1,302 - - - - 1,304
Balance at 31 August
2022 84 30,658 1,993 (547) 513 (22,858) 9,843
========= ========= ========= ========== ========= ========= ========
Consolidated Statement of Cash Flows
for the year ended 31 August 2022
Note 2022 2021
GBP'000 GBP'000
Cash flows from operating activities
Loss for the year, after tax (4,316) (5,774)
Adjustments for:
Taxation expense 466 237
Net Finance expense 101 546
Amortisation of intangible assets [5] 4,608 3,957
Depreciation of property, plant and equipment 483 687
Depreciation of right-of-use asset 2,230 2,499
Equity-settled share-based payment expense 537 1,627
Exceptional items [4] 769 445
Forgiven US PPP loan - (1,000)
Movement in working capital:
(Increase) in inventories (18) (32)
(Increase)/Decrease in trade and other receivables (2,012) 1,234
Decrease/(Increase) in trade and other payables 2,020 (429)
Cash generated from operations 4,868 3,997
Tax paid (623) (470)
Net cash from operating activities 4,245 3,527
-------- ----------
Cashflows from investing activities
Purchase of intangible assets [5] (6,452) (5,393)
Purchase of property, plant and equipment (866) (177)
Finance income 1 1
Net cash used in investing activities (7,317) (5,569)
-------- ----------
Cash flows from financing activities
Lease liability repayments (2,427) (2,599)
Sale of treasury shares 508 10
Loan receipts 3,440 -
Interest paid (73) (15)
Interest paid on IFRS16 lease liabilities (185) (284)
Cash receipts from issue of share capital 1,302 876
Net cash generated/(used in) by financing
activities 2,565 (2,012)
-------- ----------
Foreign currency cash and cash equivalents
movements 429 (241)
Net decrease in cash and cash equivalents (78) (4,295)
Cash and cash equivalents at beginning of
period 6,662 10,957
Cash and cash equivalents at end of period
Cash at bank and in hand 6,584 6,662
Cash and cash equivalents 6,584 6,662
======== ==========
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 2022 or 2021. Statutory accounts for the years ended 31
August 2021 and 31 August 2022, which were approved by the
Directors on 22 November 2022, have been reported on by the
Independent Auditors. The Independent Auditors' Reports on the
Annual Report and Financial Statements for each of 2021 and 2022
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 2021 have been
filed with the Registrar of Companies. The statutory accounts for
the year ended 31 August 2022 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 .
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 2021. 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 Directors have adopted the going concern basis in preparing
the consolidated financial statements after assessing the Group's
principal risks as set out in the Risk Management Report.
The Directors have reviewed the cash flow forecasts covering a
period of at least 12 months from the date of approval of the
financial statements. The Group's forecasts and projections, taking
account of reasonably possible changes in trading performance for
the principal risks, show that the Group expects to be able to
operate as a going concern within the level of its current cash
resources.
The ability of the Group 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
macro-economic environment continues to create uncertainty,
particularly over inflationary pressures on costs and the risk to
variable cash flows from plausible downside scenarios. The Group is
also reliant on the renewal of contracts with corporate clients to
meet its working capital requirements.
Multiple sensitivity analyses have been performed to reflect a
variety of possible cash flow scenarios associated to the principal
risks identified. The Directors have considered severe but
plausible scenarios reflecting a potential reduction in variable
revenue of between 20 and 90 percent as well as the potential
failure to successfully renew contracts in the forecast periods. In
response, the Directors have identified cost savings available to
the Group should these scenarios arise such that the reduction in
revenues would be offset by necessary costs savings. Having
assessed these scenarios, the Group would be able to continue to
operate with its existing working capital facilities.
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.
2022 2021
GBP'000 GBP'000
EMEA 21,888 18,120
Americas 16,534 9,875
APAC 8,390 6,670
-------- --------
Net Revenue 46,812 34,665
Add back: cost of sales on principal transactions 1,839 394
-------- --------
Revenue 48,651 35,059
EMEA 5,448 6,157
Americas (700) (2,192)
APAC 130 466
-------- --------
Adjusted EBITDA 4,878 4,431
Amortisation (4,608) (3,957)
Depreciation (2,713) (3,186)
Share-based payment expense (537) (1,627)
Exceptional items (769) (645)
-------- --------
Operating loss (3,749) (4,984)
Foreign exchange gain/(loss) 157 (246)
Other net finance expense (258) (307)
-------- --------
Loss before taxation (3,850) (5,537)
Taxation expense (466) (237)
Loss for the year (4,316) (5,774)
======== ========
Statutory revenue for the Americas and APAC segments is the same
as the Net Revenue amounts disclosed above. Statutory revenue for
the EMEA segment was GBP21,888k (2021: GBP18,120k).
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:
3. Segment reporting (continued)
2022 2021
GBP'000 GBP'000
Direct concierge service revenue 38,030 29,425
Offers and benefits revenue 1,129 1,143
Indirect concierge service revenue 7,516 3,314
Digital platform fees 1,976 1,177
Total revenue 48,651 35,059
2022 2021
GBP'000 GBP'000
Corporate revenue 41,116 31,905
Supplier revenue 7,535 3,154
Total revenue 48,651 35,059
Supplier revenue (cost of sales on principal member
transactions) (1,839) (394)
-------- --------
Net Revenue 46,812 34,665
-------- --------
2022 2021
GBP'000 GBP'000
Revenue from services as principal 46,570 34,453
Revenue from services as agent 2,081 606
48,651 35,059
-------- --------
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 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 Board, who are considered to be the chief
operating decision makers. 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.
Two corporate clients generated more than 10% of total revenue
each during the year ended 31 August 2022. The total combined
revenue of these corporate clients was GBP9.5m (2021: GBP9.7m) and
was mainly included in the EMEA and Americas segments.
4. Exceptional items
2022 2021
GBP'000 GBP'000
Impairment of intangible asset - 445
Loss on disposal of subsidiary and restructuring 519 -
Provision for overseas tax authority costs 250 -
Other exceptional costs - 200
769 645
======== ========
On 10 June 2022 the Group disposed of the Russian subsidiary Ten
Group (RUS) LLC, incurring closure costs associated to the disposal
of GBP519k. The disposal was completed through a sale of 100% of
the shares in the subsidiary for consideration of GBPnil.
During the year, the Group recognised a provision of GBP250k
related to an ongoing review of overseas sales taxes and
penalties.
5. Intangible assets
Capitalised Website Trademarks Total
development
costs
GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 31 August 2020 30,025 1,909 55 31,989
Additions 5,393 - - 5,393
Impairment (445) - - (445)
Reclassification 63 - - 63
Write-off - - (55) (55)
At 31 August 2021 35,036 1,909 - 36,945
------------- -------- ----------- --------
Additions 6,452 - - 6,452
Disposal (4) - - (4)
At 31 August 2022 41,484 1,909 - 43,393
------------- -------- ----------- --------
Accumulated amortisation
At 31 August 2020 19,493 1,909 55 21,457
Charge for the year 3,956 - - 3,956
Reclassification 32 - - 32
Write-off - - (55) (55)
At 31 August 2021 23,481 1,909 - 25,390
------------- -------- ----------- --------
Charge for the year 4,608 - - 4,608
Disposal (2) - - (2)
At 31 August 2022 28,087 1,909 - 29,996
------------- -------- ----------- --------
Carrying amount
At 31 August 2021 11,555 - - 11,555
------------- -------- ----------- --------
At 31 August 2022 13,397 - - 13,397
------------- -------- ----------- --------
All additions are related to internal and external expenditure.
The useful economic lives of the capitalised development platforms
and website are assessed to be five years and three years
respectively.
6. Events after the balance sheet date
Subsequent to the balance sheet date, the Group has raised a
further GBP385k of loans. The loans are guaranteed by Ten Lifestyle
Group. Interest is payable quarterly in arrears in cash at 8% per
annum during the term of the loan, a 1% administration fee payable
in cash at drawdown. The loans are repayable on the 25 August
2025.
The Group has extended the expiry dates of the Salary Sacrifice
Scheme (SSS) granted between March 2020 and March 2021 from two or
three years to four years from the original grant date.
7. 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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Policy.
END
FR FEMEDEEESEFF
(END) Dow Jones Newswires
November 23, 2022 02:00 ET (07:00 GMT)
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