14th Nov 2024 06:58
(Alliance News) - Ten Lifestyle Group PLC on Wednesday said profit fell more than 50% in its most recent financial year despite "record" earnings, as the company's expenses increased.
The London-based customer loyalty platform for financial institutions said pretax profit for the financial year that ended August 31 was GBP537,000, falling 53% from GBP924,000 last year.
Revenue grew 0.9% to GBP67.3 million from GBP66.7 million the year before, but cost of sales on principal member transactions increased 17% to GBP4.4 million from GBP3.7 million, and net finance expense for the year rose 53% to GBP1.5 million from GBP871,000.
"During the year, the group announced five new medium contract wins, as well as an expansion of an existing contract from a medium to a large and an expansion of an existing large contract," Ten Lifestyle said.
However, "offsetting this, four medium contracts did not renew or became small contracts, as well as the loss of a large contract in the last quarter of the year."
Adjusted earnings before interest, tax, depreciation and amortisation were up 6.5% year-on-year to GBP12.8 million from GBP12 million.
Chief Executive Officer Alex Cheatle said: "After two years of exceptional growth, Ten has sustained levels of net revenue, whilst achieving record adjusted Ebitda profit. We continue to develop an AI-driven digital platform, a deep competitive moat and a robust sales pipeline for future growth."
Shares in Ten Lifestyle closed 1.0% lower at 56.90 pence each in London on Wednesday.
By Emily Parsons, Alliance News reporter
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