Ten Lifestyle (TENG), which works with global banks and brands to drive loyalty among their high-net-worth customers by offering concierge services, said in a trading update that it was on track to deliver full year revenues “modestly ahead” of market expectations.
The company said that it would deliver 35% revenue growth for the second year in succession, taking net revenues for the year ended 31 August 2023 to £63m, a record level. That’s expected to deliver adjusted Ebitda of £12m, a 145% jump on FY2022 and in-line with expectations.
Despite continued investment in technology including AI to drive operating efficiencies and improve service delivery Ten ended the period with net cash of £3.5m. Cash generation was particularly strong in the second half of the year as the company had anticipated at the half year stage.
Alex Cheatle, Chief Executive Office of Ten Lifestyle Group plc, commented: "I am delighted with our performance for the year ended 31 August 2023. We have retained all of our key corporate clients and achieved record revenue and profitability. We are well positioned with a healthy pipeline of new business."
View from Vox
Ten is a beneficiary of the battle among banks and other premium brands to keep hold of their wealthiest customers, helping them to offer their clients’ ways to organise their often-high-end lifestyle and travel needs.
That’s translating into strong demand, which means the group has hit a critical mass which leaves it on track to deliver a maiden pre-tax profit this current year – brokers currently expect PTP of £3.4m rising to £4.2m the year after.
But as strong second-half trading demonstrates, those forecasts could easily be surpassed, especially with travel demand bouncing back strongly after the pandemic and the wealthy’s propensity to spend on unique experiences showing no signs of abating.
Shares in the company jumped 5% on today’s update and have now more than doubled over the last 12 months.
Disclosure: the author hold shares in Ten Lifestyle