Company Announcements

23 April 2025

Ten Lifestyle Group plc

("Ten", the "Company" or the "Group")

Interim results for the six months ended 28 February 2025

Ten Lifestyle Group plc (AIM: TENG), the global concierge technology platform driving customer loyalty for global financial institutions and other premium brands, announces its unaudited interim results for the six months ended 28 February 2025 ("H1 2025").

Financial highlights 

Operational highlights 

  o  leveraged AI and automation to enhance content and member communications to hyper-personalise the service

CURRENT TRADING AND OUTLOOK

Since the end of the period, Ten has continued to secure Material Contract developments that are expected to underpin profitable growth into FY 2026, most notably:

·    won a new contract spanning two regions to serve the UHNW clients of one of the world's largest wealth managers. The contract will start as Small, with significant potential to grow over time

·    a multi-year renewal of a Large contract in Europe, including an uplift in fees for a digitally-led service

·    a multi-year renewal of a Large contract in AMEA that is expected to grow

·    a multi-year renewal of a Small contract in AMEA with improved pricing

·    a new loyalty program expected to grow an existing Large contract in Europe

·    improved pricing for an enhanced engagement program under an existing Extra Large contract in the Americas

·    a data integration project under an existing Large contract in AMEA

On 25 February 2025, the Company hosted a Capital Markets Day, providing insights on how AI and technology are improving Ten's operational efficiency and driving growth towards its medium-term target of £100m+ of Net Revenue and Adjusted EBITDA margin target of 30%+. This included a demo of Ten's proprietary Agentic AI product, highlighting its capability to deliver a members' request, end-to-end brief take, search to book over chat, including WhatsApp, and the Ten Platform. Since then, the Group has been showcasing the capability to its existing and prospective clients, with its first roll-out expected in H2 2025.

Ten remains focused on delivering against its digital roadmap, including leveraging in-house generative AI to drive personalisation, service efficiency and quality. The Group expects to generate net cash in the second half of the year and the Board's expectations for the full financial year remain unchanged.

The Board continues to monitor the potential impact of global macroeconomic factors and engagement with existing and prospective clients remains strong. We believe that Ten's diversified service business and focus on relatively low risk economies mitigates risk, as does our in-market delivery model for all material markets.

Alex Cheatle, CEO of Ten Lifestyle Group, said;

"We continue to strengthen our market position through advancements in AI-driven technology and our digital platform, helping win new contracts and driving margin, efficiency, scalability, and service quality. Alongside a robust sales pipeline and deep competitive moat, these investments position us for profitable growth."

Analyst Presentation

An online Analyst Presentation will be held by video link today at 9:00am.

Investor Webinar

Additionally, an Investor Webinar tailored for current and prospective investors will be presented on Tuesday 29 April 2025 at 4:30pm. This will provide participants with detailed information about the Group's half-year results and strategic initiatives and offer an opportunity to interact directly with the leadership team.

If you wish to attend either the Analyst Presentation or the Investor Webinar, kindly email investorrelations@tengroup.com. This will ensure that you receive the necessary details and access information for these events.

For further information, please visit https://www.tenlifestylegroup.com/ or contact:

¹ Net Revenue includes 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 Adjusted EBITDA margin is Adjusted EBITDA as a percentage of Net Revenue.

⁶ 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 £0.25m); Medium contracts (between £0.25m and £2m); Large contracts (between £2m and £5m); and Extra Large contracts (over £5m). This does not include the revenue generated from suppliers through the provision of concierge services.

⁷ Agentic AI: Artificial intelligence systems capable of autonomous decision-making and goal-directed behaviour, often acting on behalf of users with limited oversight.

⁸ Individuals holding an eligible product, employment, account or card with one of Ten's corporate clients are "Eligible Members", with access to Ten's platform, configured under the relevant corporate client's programme, with Eligible Members who have used the platform in the past twelve months becoming "Active Members".

⁹ Ten measures member satisfaction using the Net Promoter Score management tool, which gauges the loyalty of a firm's member relationships.

OPERATING AND FINANCIAL REVIEW

CHIEF EXECUTIVE'S STATEMENT

We have achieved profitable growth whilst maintaining investment levels in AI-driven technology and the overall proposition throughout the period. This includes the development of what we believe is a world first Agentic AI product with end-to-end booking capability (including restaurants and hotels) over chat, including WhatsApp, and the Ten Platform. These investments are enhancing service levels, increasing efficiencies, helping us in securing contract developments, improving margin, and strengthening Ten's competitive advantage, ultimately leading to better member engagement and operating leverage at scale.

We started the period by securing two significant contract wins, both of which successfully launched towards the end of the period and are now generating revenue. We continued to convert our robust pipeline of contract opportunities with global financial institutions and premium brands, while also developing our existing corporate clients by securing contract renewals and commercial opportunities.

Net Revenue for the period was £31.8m, up 3% on the first half of the prior year (H1 2024: £30.9m) and up 5% at constant currency to £32.3m, with corporate revenue of £28.0m, slightly ahead of the first half of prior year (H1 2024: £27.1m) and supplier revenue of £3.8m, in line the first half of prior year (H1 2024: £3.8m). The number of Active Members was up on the prior year to 354k (FY 2024: 349k).

Adjusted EBITDA for the period increased £0.7m on the first half of prior year to £6.0m (H1 2024: £5.3m) and broadly flat at constant currency. Including the short-term headwinds from the set-up costs of the Extra Large contracts in the USA, Adjusted EBITDA margin increased to 18.9% (H1 2024: 17.2%), reflecting enhanced operational performance and FX rates offsetting the set-up costs of the Extra Large contracts in the USA. Profit before tax (PBT) increased £0.8m on the first half of prior year to £1.1m (H1 2024: £0.3m), marking the fifth consecutive half-year period of positive PBT.

At the end of the period, cash and cash equivalents were £11.2m (FY 2024: £9.3m), with net cash of £6.8m (H1 2024: £1.9m; FY 2024: £3.9m). This reflects the net proceeds of £5.7m raised through a secondary placing at the start of H1 2025 to support the short-term working capital requirements for the launch of the two contract wins, as well as the repayment of all related party loans (£1.45m). Normal seasonality, which results in higher working capital consumption in the first half of the year, and the short-term working capital requirements for the launch of the new contracts will unwind in the second half of the year.

Delivering improved Adjusted EBITDA and improving the net cash position, whilst maintaining investments in technology, are key performance indicators of the Group's strategic Growth Engine.

Corporate client developments

At the start of the period, we won a multi-year Extra Large contract in the USA with an existing global client, initially worth £5.0m per year in corporate revenue and a Medium contract in AMEA with a new client. We believe our digital platform is highly competitive and was a major reason why we won these contracts. These programs have now successfully launched and are delivering revenues, as expected, from H2 2025. During the period we also won two, initially Small contracts, supporting continued revenue growth momentum.

We expect to continue to leverage our advancements in AI-driven technology-enhanced member proposition, including the hyper personalisation of the service, to convert our robust pipeline of contract opportunities with financial institutions and premium brands aiming to enhance their customer loyalty metrics. We also expect that our existing current corporate clients will continue to adopt more digital-first elements from our AI-driven innovations to increase penetration among their eligible users, with adoption varying by value segment.

We remain confident in the strength and depth of our partnerships with corporate clients. These clients increasingly engage Ten to deliver premium product marketing, customer engagement, and insight initiatives, alongside technology integration, personalisation, and unique content projects that enhance member experiences. This  reinforces Ten's position as the preferred partner for financial institutions and premium brands seeking to attract and retain affluent customers. Our confidence is underpinned by contract developments with existing corporate clients since the end of the period, including the win of a new contract spanning two regions to serve the UHNW clients of one of the world's largest wealth managers. The contract will launch as Small, with significant potential to grow over time. Other developments include multi-year renewals of Large contracts in Europe and AMEA, both with growth or pricing uplifts, a new loyalty program under a Large contract in Europe and an enhanced engagement program under an existing Extra Large contract in the Americas.

Investments in AI-driven technology are driving efficiencies and delivering hyper-personalised content and communications

Ten continues to benefit from the operational, and competitive advantages of our proprietary digital platform. We have maintained investment levels, with £6.6m (H1 2024: 6.4m) invested in proprietary digital platforms, communications, and technologies, of which £3.2m (H1 2024: 3.7m) is capitalised development spend. We invested in AI-driven technologies during the period to deliver ongoing improvements in service quality, efficiency, scalability, and hyper-personalisation; enhancing member experience and deepening Ten's competitive moat.

Our strategic focus on developing market-leading digital capability remains central to Ten's "Growth Engine". By  maintaining investment levels as Net Revenue grows, we are able to deliver differentiated value to our corporate clients by helping them attract and retain their most valuable customers.

We have achieved significant milestones on Ten's digital roadmap since the beginning of the period, including the launch of Ten's Agentic AI product, enabling end-to-end bookings over chat, including WhatsApp and the Ten Digital Platform. This capability integrates live inventory, personalisation data, and digital fulfilment workflows, delivering a faster and more intuitive experience at scale. We also launched service functionality via LINE to expand digital accessibility in Japan.

These developments and Ten's digital roadmap, with further expansion of AI-driven capabilities, have been well received by existing and prospective corporate clients, particularly where we have demonstrated our new Agentic AI product and the ongoing automation of content delivery.

We have also continued to enhance Ten MAID, our proprietary CRM system, improving productivity and operational efficiency of the high-touch service. At the same time, we have used AI to optimise content creation and member communications. We are using large language models (LLMs) to automate content workflows, hyper-personalise communications, and reduced translation time by up to 60%¹⁰, significantly accelerating multi-language content delivery at scale. Our member communications are therefore increasingly tailored, improving member engagement and satisfaction, and thereby driving revenue.

We have maintained high levels of member satisfaction, as measured by Net Promoter Score (NPS) and have increased the number of Active Members during the period. These metrics demonstrate the effectiveness of member-focused initiatives and provide evidence of the ROI for corporate clients investing in the service.

As a certified B Corp, we have continued our efforts to build a sustainable business. This includes broadening our ESG partners and services across travel, dining, retail, and entertainment to give members more choice and to meet our corporate clients' objectives, which can help secure additional budget for our programs.

¹⁰ The average time it takes to translate guides into 20 languages reduced from 10 hours in April 2024 to 4 hours in January 2025.