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(Alliance News) - Ten Lifestyle Group PLC on Thursday reported improved first-half results as it forecast lower commission through to 2021 due to the Covid-19 disruption.
Shares in the concierge services platform were trading 2.4% lower at 80.00 pence each on Thursday afternoon in London.
For the six-month period to the end of February, Ten Lifestyle posted revenue of GBP23.8 million, up 11% year-on-year from GBP21.5 million. Pretax loss narrowed to GBP3.3 million from GBP4.8 million.
The rise in revenue was attributed to 26 new contracts launched during the period and a 25% growth in revenue realised from the Europe, Middle East and Africa region to GBP11.9 million. Revenue from the Americas increased by 5% to GBP7.7 million. However, revenue from the Asia Pacific region fell by 11% to GBP4.2 million due to the loss of a large contract in June.
Operating expenses decreased to GBP21.7 million from GBP23.9 million.
Looking ahead, the company said it has implemented cost-cutting measures in order to mitigate the extent to which the Covid-19 pandemic will hurt its earnings, with its actions expected to result in savings of at least GBP5 million in the second half of 2020.
It noted that while supplier revenue - particularly from travel bookings - have "significantly reduced" since March, the volume of service requests in March and April are 17% higher than in the same period the year prior.
"We have responded effectively to the Covid-19 pandemic, to date, although there is no certainty when or how this will end, which creates uncertainty when assessing the outlook. In the months ahead, we will continue to develop relevant service offers for our members, the customers of our contracted corporate clients. In the circumstances, there are likely to be delays to new contract launches but we continue to have positive conversations with many companies who recognise that customer loyalty and acquisition strategies will be vital as the pandemic enters new phases," Ten Lifestyle said.
As at February 29, the company had cash of GBP9.6 million.
Ten Lifestyle shares closed 4.9% lower in London on Thursday at 78.00 pence each.
By Ife Taiwo; ifetaiwo@alliancenews.com
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