Business
H1 2025 Trading Update
H1 2025 Trading Update.
About this update from Ten Lifestyle Group Plc
[{"type":"text","content":"\n\n19 March 2025\nTen Lifestyle Group plc\n(\"Ten\" or the \"Group\")\nH1 2025 Trading Update\n \nTen Lifestyle Group plc (AIM: TENG), the global concierge technology platform driving customer loyalty for global financial institutions and other premium brands, announces its trading update for the six months ended 28 February 2025 (\"H1 2025\").\n \nThe Group expects to report half year Net Revenue1 of c.£31.8m, 3% ahead of the first half of the prior year (H1 2024: £30.9m) and 5% ahead at constant currency. Active Members2 have increased since the end of the prior year to 354k (FY 2024: 349k).\n \nThe multi-year Extra Large3 contract in the USA with an existing global client, initially worth £5.0m per year, and the Medium contract in AMEA with a new client won at the start of H1 2025 have now successfully launched and are delivering revenues, as expected, from H2 2025. During the period the Group secured two, initially Small contracts, supporting continued revenue growth momentum.\n \nSince the end of the period, the Group has secured a multi-year renewal of a Large contract in Europe, including an uplift in fees for a digitally-led service, and a multi-year renewal of a Large contract in AMEA that is expected to grow.\n \nAdjusted EBITDA4 for H1 2025 is expected to increase by £0.7m on the prior year to c.£6.0m (H1 2024: £5.3m), and broadly flat at constant currency. Including the headwinds from the set-up costs of the Extra Large contracts in the USA, Adjusted EBITDA margin5 is expected to improve to 18.9% (H1 2024: 17.2%), reflecting enhanced operational performance offsetting the set-up costs of the Extra Large contracts in the USA.\n \nAt the end of H1 2025, the Group's cash and cash equivalents position was c.£11.2m (FY 2024: £9.3m), with net cash of c.£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 Group's 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). The Group's 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 yea...