Ten Lifestyle Group Plc

So let's take you through the results for the year to the end of August, 2025. I'm going to run through the highlights of the year and a business overview. Alan's going to talk about how we make money and the specific financial results. And then we'll look at some of the things that we've achieved operationally before we look at how we're developing the business today and into 2026. So overall. Now, this is a page you might want to pause on and absorb in detail. But the best way to understand this is to look at the next slide. And effectively, the story is that we've grown the business in terms of net revenue, in terms of active members, in terms of material contracts from the corporates that pay most of our money. And because we've grown the business and we put technology into the business well, we've also improved profitability. So record revenues, record number of members using our service, but also record profitability at both an EBITDA basis and also on the basis of PBT. And that has predictably resulted in improved cash position. Now, our mission remains to become the world's most trusted service platform for our members so that they organise the best things possible in their life really effectively and learn to trust us through that and through our corporate partners who get improved customer metrics because of the impact we have on their top value customers. Our corporate clients remain some of the most blue chip, most reliable clients you could possibly have around the globe. and they are seeing better results from our service all the time. On the right-hand side of this slide, you can see that banks around the world, when the people that use our service are asked, what impact does it have on your choice of bank, over half say that using our service has a strong or decisive role in them choosing their bank. And the vast majority say it has some kind of good influence on that choice. And overall, banks can be confident using their own data that we improve customer retention, customer acquisition, and the profitability of customers. Now, how do we work? So our members at the top of this chart here, our members get their service access paid for by our corporate clients. They can then access us through phone, email, through a digital platform, through chat, and they can organize their travel, their lifestyle, entertainment, their dining, and their retail benefits through hundreds of thousands of suppliers organized either self-serve through our platform or by our lifestyle managers using TenMaid and other technologies to help them do a better job. Now, why are people investing in tech? Well, firstly, as we grow, we are maintaining our investment in technology rather than growing that, and that in itself is improving the operating margin. On the far right hand side we have a growth engine that means that as we invest more into our business and improve it, we become more profitable and more successful and that allows us to invest more into our growth and that virtuous cycle continues. And we're already the number one customer experience platform in the world working for banks and also the very best way to combine travel, entertainment, dining, and retail, all in one connected journey in one connected experience, which is what the end user, our members, want. And in our market, we are only scratching the surface of the opportunity. So we believe we're at less than 0.25% of the market for customer loyalty amongst banks, credit cards, and wealth managers, nevermind the much bigger market of organizing the fun things in life for the world's wealthy. It's a very strong investment case. A video which you should definitely watch if you haven't already is the growth engine video, which is on the 10 Lifestyle Group website in the investors section. And that will explain in more detail. It's a four minute video. It's been updated, but it will explain in more video how that growth engine works and how it's working in practice right now. over to Alan to talk the business model.

Thank you, Alex. This slide is a reminder of our revenue model. So the majority of our revenue comes from our corporates who pay us a little after our high value clients. That's 88% of our revenue. And then we end 12% from supplier revenue, which is normally travel hotel commissions. On the right hand side of the slide, it just shows the makeup of a corporate client contract, typically long term in nature, often with guaranteed minimums. About 60% of our contracts have minimums in place. And we basically get paid by activity via high touch requests through using one of our lifestyle managers or through our platform digital revenue. And that's slightly lower. And whilst the digital revenue is lower than high touch, the margin is a lot higher. This next slide just shows that actually in the year our active members grew by 7% to 375,000 members. And the way we look at this is that we segment our client base into three segments, very high, high and medium. And we do that through looking through the lens of the bank and how they see their clients. The left hand side of the graph is the eligible members for the high and very high value segments. And that's been around 2.1 million in the last year. On that left-hand graph, we don't have the medium segment graph because that runs into tens of millions of eligible members. So on the right-hand side, the active members, the 375,000 broken down by the member cohort. And those active members have used the service at least once in the past 12 months. And as I said, grown to 7% to the end of the year. And also since the end of the year, to October, we've grown to 387,000, so continue to grow into this new financial year. And then we do look at the processing differently by value segment in terms of affordability and how we approach them. So when you're in a medium cohort, it's digital first because it's a lower cost per active member. And the high is more of an enhanced hybrid approach, so it'll be a lifestyle manager or through the digital platform. And at the very high end, where you've got high asset management or a really premium credit card, it's really personalised, dedicated team, exclusive experiences, our private travel service is offered to those members. And then where do we make the money? It just shows that actually the average revenue per active member, we make up to three times as much on the very high segment compared to the medium. Why is that? Because the bank can afford to spend more per member on these very high value members compared to the medium segment. here's a it's giving an example of a study here this is a european bank which back in 2022 they hadn't been marketing actually to it and they engaged with us to really re-engage with the member base and we wanted to do digital first so tennis delivery was through digital channels at excel serve location-based features to make it relevant to the member and keeping expert support in the background lms to do complex travel and bespoke experiences so what's happened over the three-year period so our client perspective digital users up 50 percent from 22 to 25. active members are up 40 percent cagger over the three-year periods and as a result of that member experience nps is up 25 percentage points so from a client point of view very successful and from a 10 perspective it's actually good for us but commercial point of view The contract's grown by 25% CAGR year-on-year, which means we've doubled revenue in that period. And because of the move to digital, which is a more profitable request for us, the margins have grown upwards of 25% absolute year-on-year from 22 to 25. Moving on to the financial results for the full year. As Alex said, we've had record net revenue. Now, I've got a bridge to go through and I'll explain that. Our adjusted EBITDA reported was 14.6, but even on an underlying basis, because we had some good currency gains, but then offsetting that with some one-off costs, underlying EBITDA is aligned to the reported EBITDA. Record margin of 22%. And then we are still continuing to invest in our digital platform, hence our amortisation has gone up a little bit. We are continuing to restructure the business as we get more efficient and digitise the business. And our net effect finance expense increased slightly due to lease interest and some FX losses on its company. But what that all means is that in the third consecutive year, record PBT at £2.9 million, a five-fold increase on last year. On net revenues, the net revenue bridge shows that we did have a bit of a headwind on our revenue on a currency basis. So actually, our constant currency was 67 million. And you can see the bridges, the base corporate revenue did grow in the year by 3.2 million. New contracts contributed 4.5 million, and that was the extra large win in the US that started in January of this year. And the three medium wins in AMEA in Europe contributed to that growth. Then the contract loss is predominantly the large contract we lost at the tail end of 2024, and that's the full year impact coming in this year. And then supply revenue is pretty stable, just up 0.2. And on the next slide, you'll see that this just shows that since COVID, the recovery, and then we are, it's around about 12% of net revenue. And that shows the consistency around the strength of the product offering across our supplier base. Breaking down that net revenue and adjusted EBITDA by region, I take Europe to start with, that is our most mature region with a margin of 36%. The revenue is down a bit and the EBITDA is down, and that's due to the large contract loss that I said earlier. The star of the regions this year has been AMEA, where net revenue has been up 37% to 15.7%, and that's with the new launches, contract retention is 100%, and continued sustained member demand. And that's meant, along with operational efficiencies, M&A has more than doubled to 4.3 million, and we're now set with a margin of 12% improvement at 27%. With Americas, network is slightly down. We do have some clients who are deferring growth pending our digital rollout. We'll go and explain that a little bit later in this presentation. We did some FX headwinds on the revenue, but then EBITDA was up year on year, driven by some favorable FX on our cost base and the new contract launch. We continue to invest in technology. However, as a percentage of our revenue, it continues to come down. It's now at 19%. We expect this trend to continue as we grow the business. We'll be capitalized about 6.7 million, and that will be continued to be flat going forward. We don't see that going up in any great extent. And the overall spend, including the P&L spend, will be around the 12 and a half. 12.6 million we've got on the graph. We do that because it grows competitive advantage, it grows its efficiency into the business, which we'll talk about later, improves the service levels, and ultimately grows revenues. Cash flow, we ended the year with gross cash of 10.6 million, net cash of 9.7. We ended cash flow in the year of 0.3, driven by the increase in PVT. We, as we said, continue to invest in our platform and AI, 6.7 million invested in the year. And as you remember, at the start of the year, we did have a share pricing which raised 5.7 million, and that allowed us to repay loan notes that we had early of 4.5 million in the year. And if we move on to the next slide on the balance sheet, that's meant our net assets have grown year on of year due to the share vote issue and the increased profits. And then post year end, we have repaid loan notes in full. So we have no debt in the business now. And we've terminated our invoice discounting facility. And we've secured a three-year, £5 million revolving credit facility with NatWest. And that supports our short-term working capital requirements and gives us a good buffer in the years ahead. I'll now hand back to Alex for an operational update.

Thank you very much, Alan. So let's play a video first about our proposition. This is an updated video that will give you the very latest about why our members love using our service.

TEN delivers far better service, access, and benefits to our members than what's publicly available. by combining proprietary technology, industry expertise, and negotiated partnerships with hundreds of thousands of attractive brands across dining, entertainment, travel, and retail. When eating out in the UK, for example, our members can search almost all good restaurants and experience better availability or benefits at 30% of Michelin star restaurants and at over half of the most in-demand restaurants. That's because we have direct integrations with reservation systems and industry partnerships enabled by our members' high spend levels. Our platform uses data to tailor recommendations at home and abroad, while dining experts are available whenever preferred. Ten's entertainment services give our members unparalleled access to live events. We let them know when their favorite artist is going on sale, and then they can book face value tickets via Ten's allocations. With the launch of Tenbox Office, alongside other API integrations, we're becoming a preferred channel globally for the industry rights holders who want to attract our high spenders. TEN supports members brilliantly when they travel. Unlike traditional travel agents, we don't rely on commissions. This means we can give greater value in personalized choices. We leverage member spending for better rates. TEN's global hotel collection offers over 5,000 luxury hotels with perks like upgrades and free breakfast. While the essential collection provides over 720,000 hotels, 15% cheaper than the best rates on the open internet. Members can browse guides for inspiration, create itineraries, and then book digitally or consult our travel experts for more complex trips. And retail brands offer our members special benefits, events, and discounts. By serving the best access, value, and benefits across the connected categories of dining, entertainment, travel, and shopping, TEN gives our members what they want and drives value for our corporate clients and revenues and profits for the company.

So what did we achieve in the year? It started off with us launching the 10 box office. We also launched many other technical improvements in the year and technology developments. On top of that, we launched new contracts in Japan and new contracts in the US and other contracts around the world. Every single month we achieved something that brought us a step forward towards our vision of becoming the most trusted service in the world. In terms of our digital improvements, we've made improvements internally and externally. Internally, it's about improving how well lifestyle managers manage the service. So the AI Guardian improves how we QA and check and quality audit the requests that we manage and what we send back to the lifestyle manager in terms of confirmations. That improves service quality and drives repeat use and overall satisfaction with the service. The lifestyle manager co-pilot allows lifestyle managers to accurately get more information more quickly. And again, serve members live on call, revert to emails much quicker, and overall drive repeat use and member satisfaction as well. 10px drives up how well we engage with members differently because of what we know about them. So we can tell members that live in one part of the world about different restaurants than somebody that lives in the next city. We can tell them about restaurants in their city. We can tell people about things based on their age, based on their sex, based on their location, based on the preferences that they've given us, based on when they last used the service. All of this drives repeat use, which drives revenues and drives member satisfaction as well, which drives a long-term business. Externally, we've built the world's first AI-powered member assistant that books restaurants across, in the UK, for instance, across the biggest restaurant booking systems with restaurant benefits and availability at many, many hundreds of them, altogether about 850 of them today. And that's available both through Talia, the AI-powered member assistant, but also on our digital dining platforms. And in entertainment, we've built out the 10 box office and that's led to a 30% increase in bookings since we launched it. Let's play a video now that explains why members use our restaurant booking service. And let's also bring alive why the chefs and the owner managers of restaurants want to work with us.

I really enjoy working with TEN. I really trust their expertise. I like to work with TEN because it's a totally natural partnership made of excellence on both parts.

The thing that really separates and elevates what TEN Group do as a lifestyle concierge is the knowledge that they have.

TEN are very discerning and they They pick and choose the best, so we're very proud to be associated with TEN.

We really value the partnership with TEN. It introduces us to guests that we wouldn't meet otherwise. We really love working with TEN because they care about crafting an experience, and we do too.

They take the time to visit the restaurants and to get to know the chef and the cuisine.

We really love to work with them because we share the same philosophy. We love to work with the concierge because, first of all, they have the same standard of excellence. It's a joy, actually. We're looking forward to seeing the masseuse.

This is dining times ten.

So to recap across our platform, we've already built all of the capability to the left, and all of that was built before the start of the last reported year. But in the last reported year, we improved hotel search. We integrated more partners for dining, We improved map functionality in search. We launched 10PX. We enhanced content outside login, so members who are not yet registered with us get far more reasons why they should want to go through the very simple registration process. We launched Line in Japan, which is the Japanese equivalent of WhatsApp or WeChat. And we also launched Copilot and 10Guardian and so on. So thinking about the outlook for 2026, we're going to grow the top line. And we expect to do that both through winning new contracts with current clients, growing existing contracts with current clients, winning new contracts with new clients, and then also winning new clients in new verticals on top of our current business, which is largely financial services. And across the business, we expect to grow active members. Already they're up to 387 just two months into the year. We expect to continue to benefit from the fact that banks want to increase customer loyalty, that end users of our service want to experience better dining, better travel, better live entertainment. And across the world, people of all ages are adopting digital at ever-increasing rates. All of that is very good for us. As we roll out our tech, not only will that grow our service because people use our service more, it'll also grow our margins. These are our plans. for the year ahead and that's why we're confident that we should expect to have a good year ahead and even better years beyond that.