Business
Trading Update and Notice of Half-Year Results
Trading Update and Notice of Half-Year Results.
About this update from Ten Lifestyle Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 6116D\n Ten Lifestyle Group PLC\n 04 March 2022\n \n \n \n \n 4 March 2022\n \n \n Ten Lifestyle Group plc \n \n \n (\"Ten\" or the \"Group\") \n \n \n Trading Update and Notice of Half-Year Results\n \n \n \n \n \n Ten Lifestyle Group plc (AIM: TENG), a leading technology-enabled, global concierge platform for the world's wealthy and mass affluent provides a Trading Update and notice of its half-year results for the six months ended 28 February 2022.\n \n \n \n \n \n Trading update \n \n \n \n Net Revenue1for FY22 remains in line with the Board's expectations, with the negative effects of Omicron in the second half of H1 expected to be mitigated by new wins launching in H2 and recovery on existing contracts as the pandemic eases in each region.\n \n \n \n During a period of strong recovery in the Autumn, additional staff were hired. However, the impact of Omicron has resulted in reduced member requests since December. We have retained this additional headcount to support new contract launches and the expected recovery of existing contracts. The Board now expects the Adjusted EBITDA2 outturn for FY22 to be below expectations but with growth still expected on the prior year (FY21: £4.4m).\n \n \n \n We have started to see an increase in activity again in February 2022 in EMEA, where Omicron first impacted in late November.\n \n \n \n The Board expects the new contract wins secured during H1 to increase revenue and profitability in line with its expectations for FY23, which remain unchanged. We continue to enjoy a healthy pipeline of new business and high conversion rates.\n \n \n \n Net Cash was c.£4.7m at end of February 2022 (FY21: £6.7m). \n \n \n \n The effects of the conflict between Russia and Ukraine on the business is currently expected to be limited as only c. 1-2% of the Group's annual Net Revenue relates to Russia and the directly affected region. \n \n \n \n \n \n \n \n \n \n \n 1\n \n \n \n Net Revenue excludes the direct cost of sales relating to certain member transactions managed by the Group.\n \n \n \n \n 2\n \n \n \n Adjusted EBITDA is post-IFRS16 and is operating profit/(loss)/ before interest, taxation, amortisation, share-based payments and exceptional costs.\n \n \n \n \n \n \n \n \n Noti...