Loyalty and concierge specialist reports record revenue, profit and member growth as clients increasingly use its digital platform.
Ten Technologies Group (AIM: TENG) has delivered another set of record annual results, with net revenue rising 6% to roughly £69.7m in the year to 31 August, or 8% at constant currency, as the concierge and loyalty services group continued to shift customers onto its digital platform.
The improvement was driven by falling costs to serve as more members opted for digital-only interactions, allowing the company's Lifestyle Managers to handle a growing customer base more efficiently. Adjusted EBITDA climbed 10% to £16.1m, with margins edging up to around 23%, while active members jumped 23% to 461,000.
The group, which provides technology-backed concierge and lifestyle management services to banks and premium brands, ended the year in a strong financial position, with net cash of £11.1m and no long-term debt. Adjusted free cash flow roughly doubled to £2.1m, underlining the cash-generative nature of the digital-first model.
Growth during the year was supported by new contract wins in the Americas and expanded digital rollouts, including a platform serving more than a million HSBC Premier customers in the UK, alongside new services in Japan and for wealthy clients across Asia, the Middle East and Africa. CEO Alex Cheatle said Adjusted EBITDA was up 20% at constant currency, with margin expansion, net cash generation and active members up over 20% all pointing to structural cost advantages from the digital shift.
With a market capitalisation of around £100m, some observers have suggested the shares may not yet fully reflect the strength of the EBITDA growth and cash generation reported today. Investors will be watching for further contract wins and continued digital adoption to sustain margin expansion into the new financial year.
This report is based on Ten Technologies Group’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full markets calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: BaljkanN 4 on Unsplash.
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