Ten Lifestyle Group PLC H1 2023 Trading Update (4416T)

TIDMTENG

RNS Number : 4416T

Ten Lifestyle Group PLC

20 March 2023

Ten Lifestyle Group plc

("Ten" or the "Group")

H1 2023 Trading Update

   --          c.49% Net Revenue growth on prior year 
   --          Record H1 Adjusted EBITDA profitability 
   --          Record Active Members of c.316,000

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 28 February 2023 ("H1").

Trading Update

The Group expects to report half year Net Revenue (1) of c.GBP30.9m, c.49% above the first half of the prior year (H1 2022: GBP20.8m) and c.18% above the second half of the prior year (H2 2022: GBP26.1m) demonstrating consistent, continued growth. Growth during the period was driven by contract developments and a record number of Active Members (2) ,up 36% on first half of the prior year to 316k (H1 2022: 221k, H2 2022: 275k).

Adjusted EBITDA (3) for H1 is expected to be c.GBP5.0m (H1 2022: GBP0.9m), a record for Ten and ahead of the previous record half year (H2 2022: GBP4.0m).

At the end of H1, the Group's cash position was c.GBP7.2m (FY 2022: GBP6.6m), with net cash of c.GBP0.5m (FY 2022: GBP3.2m). This reflects the Group's normal (pre-COVID-19) seasonality, to consume working capital in the first half of the year and was adversely impacted by a late client receipt of GBP1.0m, which has now been received. An invoice discounting facility was signed during the period with the Group's bank (H1 2023: GBP2.1m drawn down), in addition to the Group's GBP4.6m of loans (FY 2022: GBP3.4m), to underpin the Group's working capital requirements. The Group expects to generate net cash in H2 2023.

The Group has continued its investment in technology and proposition throughout the period to drive improvements in service levels, efficiencies, and Ten's competitive advantage.

Notice of Results

The Group expects to announce its half year results on Wednesday 3 May 2023, where further details will be provided. An online Analyst Presentation will be held by video link at 9:00am the same day.

The Group will also be presenting an Investor Webinar on Thursday 4 May 2022 at 5:30pm GMT. The presentation is open to all existing and potential shareholders.

To attend either the Analyst Presentation or the Investor Webinar, please email investorrelations@tengroup.com .

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

(2) Active Members are members of Ten that have used the service at least once in the past twelve months.

(3) Adjusted EBITDA is operating profit/(loss) before interest, taxation, depreciation, amortisation, share-based payments and exceptional items.

- End -

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 
    James Smith                                       8900

Notes to Editors:

About Ten Lifestyle Group Plc

Ten Lifestyle Group plc ('Ten') 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 please go to: www.tenlifestylegroup.com .

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