Revenues soar for Ten Lifestyle as banks splash the cash
Interest rate hikes have boosted concierge group Ten Lifestyle’s revenues as banks with cash to splurge spend shell out on its services.
Ten, whose clients include Coutts and Natwest Black, said net revenue for the year rose 35 per cent to around £46.8m yesterday, beating forecasts of £45m.
The UK firm offers preferential access to top-end experiences, including last-minute stays at Claridges and tables at the top Michelin-starred restaurants.
With 85 per cent of its revenue coming from banks, who pay a handsome fee for Ten to give its most prized customers a five-star experience, the business model hinges on cash-rich customers and banks willing to splash.
Founded in central London in 1998 by Alex Cheatle and Andrew Long, 70 per cent of its business is now outside of the UK.
Co-founder and CEO Cheatle told City PM that this global expansion has been an incredibly rewarding experience. “Once you can run a service in London, the rest of the world is pretty straightforward,” he said, adding that the rich culture and complexity was a good foundation for any business.
Investment bank Peel Hunt also praised Ten for its bold investment strategy in recent years.
“Ten took the decision in winter 2021 to invest for the demand it was seeing, which was scuppered by Omicron,” analysts said. “But that strategic decision has been vindicated and puts Ten in a very strong position.”
Ten has invested around £90m in its platform in the last decade, which analysts said have allowed Ten to maintain 100 per cent material client retention.
Shares were down two per cent this afternoon despite the upbeat set of results, which adds to its near 50 per cent plunge in the year to date.