Business
Covid-19 Update and Cost Saving Initiatives
Covid-19 Update and Cost Saving Initiatives.
About this update from Ten Lifestyle Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 0061I\n Ten Lifestyle Group PLC\n 30 March 2020\n \n \n \n \n 30 March 2020\n \n \n Ten Lifestyle Group plc\n \n \n (\"Ten\" or the \"Company\")\n \n \n \n \n \n Covid-19 Update, Cost Saving Initiatives and PDMR Dealing\n \n \n \n \n \n Ten Lifestyle Group plc (AIM: TENG), a leading technology-enabled lifestyle and travel service platform provides an update on the impact of the COVID-19 (\"Coronavirus\") pandemic and how the business is implementing cost saving initiatives, including the announcement of a voluntary salary sacrifice in exchange for share option grants. \n \n \n \n \n \n Coronavirus Update\n \n \n As outlined as part of the Trading Update announced on 6 March 2020, Ten's business model allows it to continue to deliver services relevant to its members and corporate clients. Revenue is driven substantially from service delivery rather than the conversion of bookings. \n \n \n \n \n \n Around the world, Ten's robust operating model and business continuity plans have enabled the business to migrate staff, where it has been required, to homeworking, maintaining PCI compliance with no service interruption. \n \n \n \n \n \n Ten is rapidly adapting to meet the changing needs of members during this time. March to date has seen record numbers of members using the service and a record number of individual requests being placed with the service. However, travel bookings have been significantly impacted with high levels of cancellations and refunds. This will impact revenue from commission payments1 until global travel begins to recover. Furthermore, self-isolation will reduce restaurant and entertainment requests and there is no certainty that our new types of activity, relevant to people at home, will fully compensate for this impact in the months beyond March.\n \n \n \n \n \n The Board recognises the considerable uncertainty during this period but is encouraged that the Company's blue-chip client base, made up predominantly of private and retail banking providers, including Coutts and HSBC Jade in the UK, is stable. Corporate clients' feedback is that they remain keen to support their high-value customers throughout this challenging period. \n \n \n \n \n \n The Board reaffirms its expectations, as announced on 6 March 2020, for the half year results fo...