Ten Technologies Group, the concierge and loyalty platform used by banks and premium brands, delivered record results as its digital rollout gained pace.
The AIM-listed group, formerly known as Ten Lifestyle Group, grew net revenue 6% to £69.7m (8% at constant currency) and lifted adjusted core earnings (EBITDA) 10% to £16.1m, with the margin widening to a record 23.1%.
Pre-tax profit rose to £3.4m, a fourth straight year in the black, and the company ended the period debt-free with net cash of £11.1m.
Alex Cheatle, CEO of Ten Technologies Group, said: “Record revenue, profit and active members define another strong year in which we continued to invest successfully in our technology, our ‘better than the internet’ customer experience, and our competitive moat.”
Operationally, the driver was a 23% jump in active members to 461,000, while costs rose far more slowly, cutting the cost of serving each member by 15%. This sits at the heart of the margin expansion story and underscores the investment case.
Growth came from encouraging clients onto Ten’s digital platform, including a fully digital service for more than a million HSBC UK Premier customers and launches in Japan and the Middle East and Africa.
Ten Technologies memberships
The business is changing through technology deployment, and members are growing far faster than revenue. The digital-first users being added generate less income per head than traditionally serviced clients, so the 23% membership growth does not necessarily translate straight through to the top line.
There are also accounting considerations: Ten capitalised £7.1m of its £12.3m technology spend rather than expensing it, which lifts EBITDA and makes the more modest £3.4m pre-tax profit.
But take nothing away from the company’s momentum, which has carried into the new year and sets the company up for further growth. Active members are up a further 18% to 545,000 in the two months since the year-end, helped by the HSBC rollout and a relaunch with NatWest, and the company said trading was in line with expectations for 2027.
Ten Technologies shares were little changed on Wednesday after a period of strong performance.