Ten Lifestyle Group (TENG) , a global concierge platform for high-net-worth individuals, announced preliminary results for FY23 ended August 31 2023.
Ten Lifestyle reported a 35% increase in net revenue to £63.0m from £46.8m a year ago. Corporate revenue was up 35% to £55.6m, and supplier revenue was up 30% to £7.4m. Net corporate revenue retention rate increased to 131% from 120% last year.
Adjusted EBITDA jumped by 145% to £12.0m from £4.9m in FY22, and adjusted EBITDA margin increased by 8.7% to 19.1%. Profit before tax reached £0.9m, recovering from a £3.8m loss last year.
The company had cash and cash eq of £8.2m, up from £6.6m in FY22, and net cash of £3.7m, up from £3.2m in FY22.
Operationally, Ten Lifestyle reported active members up 28% to 353k, driven by strong growth within existing corporate clients. £13.9m of investment is planned in proprietary digital platforms and technologies to enhance member experience. The company said it retained all material contracts for the fourth consecutive year.
View from Vox
An impressive set of FY23 results from Ten Lifestyle with a 35% increase in net revenue, 145% higher adjusted EBITDA, and significantly increased margin to 19.1%. The company reached a value inflection point as it recovered from a £3.8m loss last year to a £0.9m profit in FY23. Investors welcomed the results, sending TENG shares 13.9% higher on Wednesday. Shares are up 122% in the past 12 months.
Revenue was driven through increased activity from existing active members and first time users, with a robust pipeline of new partnership opportunities expected to further increase the member base. Revenue was also boosted by higher interest rates during the period, as Ten Lifestyle's banking clients were able to retain more high-net-worth individuals.
Ten Lifestyle's strong pipeline continues to convert, with several new contract developments since the start of FY24 expected to yield revenues from H2 2024. Continued significant investment in the company's proprietary technology, including AI, should further growth net revenue and adjusted EBITDA profitability, pushing it further into cash generation across FY24. Meanwhile, Ten Lifestyle remains well-funded with a comfortable cash position and loans raised to date.
Follow News & Updates from Ten Lifestyle: