Last checked at 6 Mar 2020 07:00
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 EBITDA1 is expected to be breakeven, in line with the Board's expectations and a significant improvement on Adjusted EBITDA loss of £2.5m in H1 FY19, with continuing improvements in operating cost efficiencies. |
· | Net Cash of c.£9.5m at end of February (August 2019: £12.3m). |
· | Continued investment into technology to build service levels, efficiency, competitive advantage and barriers to entry. |
· | Year on year Net Revenue2 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 Large3 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 £5m.
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 Alex Cheatle, Chief Executive Officer Alan Donald, Chief Financial Officer
| via Tavistock +44 (0)20 7479 3427 |
Peel Hunt LLP, Nominated Advisor and Broker Edward Knight George Sellar Nick Prowting
| +44 (0) 20 7418 8900 |
Tavistock, Financial PR & IR Jos Simson Simon Hudson Heather Armstrong | +44 (0) 20 7920 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/.