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 £537,000, falling 53% from £924,000 last year.

Revenue grew 0.9% to £67.3 million from £66.7 million the year before, but cost of sales on principal member transactions increased 17% to £4.4 million from £3.7 million, and net finance expense for the year rose 53% to £1.5 million from £871,000.

‘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 £12.8 million from £12 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.

Copyright 2024 Alliance News Ltd. All Rights Reserved.