TEN LIFESTYLE MANAGEMENT LIMITED

Company Registration Number:
04688658 (England and Wales)

Unaudited statutory accounts for the year ended 31 August 2024

Period of accounts

Start date: 1 September 2023

End date: 31 August 2024

TEN LIFESTYLE MANAGEMENT LIMITED

Contents of the Financial Statements

for the Period Ended 31 August 2024

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

TEN LIFESTYLE MANAGEMENT LIMITED

Directors' report period ended 31 August 2024

The directors present their report with the financial statements of the company for the period ended 31 August 2024

Principal activities of the company

The principal activity of Ten Lifestyle Management Limited (the “Company”) in the year under review was the provision of trusted concierge services to the world’s wealthy, from the mass affluent through to High-Net-Worth Individuals, using its market-leading technology-enabled lifestyle and travel platform. The Company’s corporate clients include private banks, retail banks, premium payment card providers and luxury brands who provide the Company’s services to segments of their premium individual customers, who then become the Company’s members. The majority of the Company’s revenue derives from service fees that are paid by its corporate clients, under contracts typically of a multi-year duration of three years or more. The Company does not typically take a margin on the goods and services it delivers to its members; this provides a competitive pricing advantage over traditional service providers, such as ticket sellers and travel agents, who do typically take or add a margin. The Directors believe that member satisfaction and the resulting impact of improving those members’ brand affinity for the Company’s corporate clients, drives the Company’s long-term success. The Company’s services are generally made available to members through the Company’s corporate clients who pay for these services on their individual customers’ behalf. The majority of the Company’s clients are corporate institutions who offer concierge services as part of their ancillary benefits package which are complementary to their products. The Company typically charges its corporate clients on a ‘per request’ basis – either high touch (which involve a lifestyle manager) or low touch (which are completely or largely fulfilled through the Company’s proprietary online platform). A request is generally an instruction received from a member to research, advise or arrange something on their behalf. Requests are principally related to travel, dining and live entertainment but can extend to more general lifestyle support services. This revenue stream also includes negotiating special offers or benefits with suppliers and creating bespoke editorial content. The Company also earns revenue from its supplier base, such as hotels, airlines and event promoters who sometimes pay commission to the Company.

Additional information

Director's report contains Section 172 Statement and information regarding the following topics: financial risk management objectives and policies, liquidity risk, credit risk, foreign exchange risk, overseas branches, research and developments and post balance sheet events.



Directors

The directors shown below have held office during the whole of the period from
1 September 2023 to 31 August 2024

Alex Cheatle
Sarah Hornbuckle
Andrew Long


The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
14 February 2025

And signed on behalf of the board by:
Name: Alex Cheatle
Status: Director

TEN LIFESTYLE MANAGEMENT LIMITED

Profit And Loss Account

for the Period Ended 31 August 2024

2024 2023


£

£
Turnover: 51,581,000 54,382,000
Cost of sales: ( 4,308,000 ) ( 2,820,000 )
Gross profit(or loss): 47,273,000 51,562,000
Distribution costs: ( 24,472,000 ) ( 30,341,000 )
Administrative expenses: ( 23,833,000 ) ( 22,785,000 )
Other operating income: 4,166,000 7,521,000
Operating profit(or loss): 3,134,000 5,957,000
Interest payable and similar charges: ( 1,450,000 ) ( 797,000 )
Profit(or loss) before tax: 1,684,000 5,160,000
Tax: ( 101,000 ) 1,846,000
Profit(or loss) for the financial year: 1,583,000 7,006,000

TEN LIFESTYLE MANAGEMENT LIMITED

Balance sheet

As at 31 August 2024

Notes 2024 2023


£

£
Fixed assets
Intangible assets: 3 16,343,000 15,389,000
Tangible assets: 4 167,000 205,000
Investments: 5 7,975,000 5,797,000
Total fixed assets: 24,485,000 21,391,000
Current assets
Stocks: 6 50,000 504,000
Debtors: 7 14,922,000 10,479,000
Cash at bank and in hand: 4,707,000 5,545,000
Total current assets: 19,679,000 16,528,000
Creditors: amounts falling due within one year: 8 ( 25,082,000 ) ( 21,963,000 )
Net current assets (liabilities): (5,403,000) (5,435,000)
Total assets less current liabilities: 19,082,000 15,956,000
Creditors: amounts falling due after more than one year: 9 ( 4,547,000 ) ( 3,550,000 )
Total net assets (liabilities): 14,535,000 12,406,000
Capital and reserves
Called up share capital: 43,000 43,000
Share premium account: 41,358,000 41,358,000
Other reserves: 9,029,000 8,492,000
Profit and loss account: (35,895,000 ) (37,487,000 )
Total Shareholders' funds: 14,535,000 12,406,000

The notes form part of these financial statements

TEN LIFESTYLE MANAGEMENT LIMITED

Balance sheet statements

For the year ending 31 August 2024 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 14 February 2025
and signed on behalf of the board by:

Name: Alex Cheatle
Status: Director

The notes form part of these financial statements

TEN LIFESTYLE MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 August 2024

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Financial Reporting Standard 101

    Turnover policy

    Revenue comprises concierge revenue (from corporate clients and the private membership base), supplier revenue, and other revenue generated from member transactions. An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. The Company is a principal in all services provided, other than in those transactions with members detailed below in the indirect concierge service revenue section. A typical concierge contract duration is 36 months. Revenue is stated exclusive of VAT, sales tax, and trade discounts. Revenue is recognised when the Company has fulfilled its performance obligations under the relevant customer contract. To the extent that invoices are raised to a different pattern than the revenue recognition described below, appropriate adjustments are made through deferred and accrued income to account for revenue when the performance obligations have been met. Furthermore, the Company receives payments from members for the concierge service which are invoiced on 30-day payment terms and commissions earned on agent transactions are generally received on booking dates or when deposits are due. The Company primarily provides a concierge service (online and/or offline). Where goods and/or services are sold in one bundled transaction, the Company allocates the total arrangement’s consideration to the different individual elements based on their relative fair values. Management determines the fair values of individual components based on actual amounts charged by the Company on a stand-alone basis given the lack of comparable pricing arrangements observable in the market. The nature, timing of satisfaction of performance obligations, and significant payment terms of revenue obtained by the Company are considered below: Direct concierge service revenue The Company provides concierge services to its members (online and/or offline) and recognises concierge consideration at the point in time the performance obligation of managing a request is fulfilled. The Company uses the residual approach to determine the transaction price given the lack of observable market prices available as well as the niche nature of the services provided. Where the Company’s performance of its obligations exceeds amounts received, accrued income or a trade receivable is recognised depending on Company’s billing rights. Where the Company’s performance of its obligations under a contract is less than amounts received, a contract liability in deferred income is recognised. The amount of revenue recognised can be subject to contract structures including variable consideration and cap and collar thresholds. Where variable pricing structures are in place with predetermined service thresholds, price per service unit is therefore based on the expected entitlement (most likely method) earned up to the statement of financial position date under each customer agreement. On implementing a customer contract, it is typical for the Company to charge concierge enabling fees. Where concierge enabling fees are capable of being separated out from an ongoing service contract, revenue will be recognised in full at the point in time of the launch of the service (high touch or online). When the service is not distinct, this cannot be separated from the contract and is recognised over the contract term. Where the service is invoiced in advance and is yet to be launched (i.e. the performance obligation is not fulfilled), a contract liability will be held on the statement of financial position in deferred income. Indirect concierge service revenue Acting as agent (supplier revenue) The Company acts as an agent when it is not the primary party responsible for providing the components that make up the member’s booking and does not control the components before they are transferred to members. Revenue comprises the fair value of the consideration received or receivable in the form of commission. Commissions are earned from the member through purchases of travel products such as hotel accommodation or flight tickets from third-party suppliers. Commission is recognised when the performance obligation of arranging and facilitating the member to enter into individual contracts with suppliers is satisfied, usually on delivery of the booking confirmation. Cancellations are estimated at the reporting date based on the historical profile of cancellations. Revenue is stated net of cancellations and expected cancellations. Acting as principal (supplier revenue) The Company acts as a principal when it is the primary party responsible for providing the components that make up the member’s booking and it controls the components before transferring to the member. Revenue represents amounts received or receivable for the sale of package holidays and other services supplied to members. Revenue is recognised when the performance obligation on delivering an integrated package holiday or service is satisfied, usually over the duration of the holiday. Digital platform revenue The Company provides an optional digital platform (the “Ten Digital Platform”) offering to its customers under corporate contracts (corporate revenue). Revenue generated from licensing digital products and software maintenance is recognised on a straight line basis over time attributed to the licence. The nature of the Company’s promise in granting a licence is a promise to provide a right to access the Company’s intellectual property as the customer benefits from periodic upgrades to the platform. Where such revenue is invoiced in advance, the revenue is deferred and released over the period of the licence with the contract liability recorded within deferred income in the statement of financial position. Revenue generated from developing digital products specific to a customer is recognised at the point in time of the delivery of the service. Where revenue is based on time spent, rate cards are recognised at the contracted rates as labour hours are incurred. Where development income is invoiced in advance, the revenue is deferred as a contract liability with the balance recorded within deferred income in the statement of financial position and released on service delivery.

    Tangible fixed assets depreciation policy

    Property, plant and equipment are measured at historical cost less accumulated depreciation and accumulated impairment losses. Depreciation is charged to the income statement on a straight line basis over the estimated useful lives of property, plant and equipment. Property, plant and equipment are depreciated from the date they are available for use. The estimated useful lives are as follows: Leasehold improvements Over the term of the lease Fixtures and fittings 5 years straight line Office equipment 3 to 5 years straight line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the income statement.

    Intangible fixed assets amortisation policy

    Research expenditure is expensed to the income statement in the year in which it is incurred; expenditure on internal projects is capitalised if it can be demonstrated that: (1) it is technically and commercially feasible to develop the asset for future economic benefit, (2) adequate resources are available to maintain and complete the development, (3) there is the intention to complete and develop the asset for future economic benefit, (4) the Group is able to use the asset, (5) use of the asset will generate future economic benefit, (6) expenditure on the development of the asset can be measured reliably. Other development expenditure is recognised in the income statement as an expense as it is incurred. Capitalised development expenditure is stated at cost less accumulated amortisation and less accumulated impairment losses. Amortisation is charged to the income statement on a straight-line basis over the estimated useful lives of intangible assets. Intangible assets are amortised from the date they are available for use. The estimated useful lives are as follows: Capitalised development costs 2 to 5 years straight line Website 3 years straight line The basis for choosing these useful lives is with reference to the years over which they can continue to generate value for the Group. The amortisation charges are included within administrative expenses in the consolidated statement of comprehensive income. The Group reviews the amortisation year and methodology when events and circumstances indicate that the useful lives may have changed since the last reporting date. 1.7 IFRS 16 “Leases” The Company leases various properties for office space. Rental contracts are typically made for rolling periods of one month to five years but might have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight line basis. The Company has not applied the expedient to not recognise all classes of operating leases with a remaining lease term of less than twelve months as short-term leases. The policy applied has been applied consistently to leases of underlying assets in the same class whereas the transitional expedient can be applied on a lease-by-lease basis. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: (1) fixed payments (including in-substance fixed payments), less any lease incentives receivable; (2) amounts expected to be payable by the lessee under residual value guarantees; and (3) payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined, or the Company’s incremental borrowing rate. Right-of-use assets are measured at cost comprising the following: (1) the amount of the initial measurement of lease liability; (2) any lease payments made at or before the commencement date less any lease incentives received; (3) any initial direct costs; and (4) restoration costs. Payments associated with leases of low-value assets are recognised on a straight-line basis as an expense in the income statement. Low-value assets comprise IT equipment. 1.8 Non-current investments Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. 1.9 Impairment of tangible and intangible assets All tangible and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount might not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are largely independent cash inflows (CGUs).

    Valuation information and policy

    Full policy is set out in the Account.

    Other accounting policies

    Notes contain information on taxation, share based payments and exceptional items.

TEN LIFESTYLE MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 August 2024

  • 2. Employees

    2024 2023
    Average number of employees during the period 185 189

TEN LIFESTYLE MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 August 2024

3. Intangible assets

Goodwill Other Total
Cost £ £ £
At 1 September 2023 50,676,000 50,676,000
Additions 6,724,000 6,724,000
Disposals
Revaluations
Transfers
At 31 August 2024 57,400,000 57,400,000
Amortisation
At 1 September 2023 35,287,000 35,287,000
Charge for year 5,770,000 5,770,000
On disposals
Other adjustments
At 31 August 2024 41,057,000 41,057,000
Net book value
At 31 August 2024 16,343,000 16,343,000
At 31 August 2023 15,389,000 15,389,000

TEN LIFESTYLE MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 August 2024

4. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 September 2023 58,000 105,000 1,417,000 1,580,000
Additions 5,000 90,000 95,000
Disposals ( 58,000 ) ( 88,000 ) ( 530,000 ) ( 676,000 )
Revaluations
Transfers
At 31 August 2024 5,000 17,000 977,000 999,000
Depreciation
At 1 September 2023 57,000 103,000 1,215,000 1,375,000
Charge for year 1,000 131,000 132,000
On disposals ( 57,000 ) ( 87,000 ) ( 535,000 ) ( 679,000 )
Other adjustments 4,000 4,000
At 31 August 2024 0 17,000 815,000 832,000
Net book value
At 31 August 2024 5,000 0 162,000 167,000
At 31 August 2023 1,000 2,000 202,000 205,000

TEN LIFESTYLE MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 August 2024

5. Fixed assets investments note

Property, plant and equipment Property, plant and equipment are measured at historical cost less accumulated depreciation and accumulated impairment losses. Depreciation is charged to the income statement on a straight line basis over the estimated useful lives of property, plant and equipment. Property, plant and equipment are depreciated from the date they are available for use. The estimated useful lives are as follows: Leasehold improvements Over the term of the lease Fixtures and fittings 5 years straight line Office equipment 3 to 5 years straight line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the income statement.

TEN LIFESTYLE MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 August 2024

6. Stocks

2024 2023
£ £
Stocks 50,000 504,000
Total 50,000 504,000

TEN LIFESTYLE MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 August 2024

7. Debtors

2024 2023
£ £
Trade debtors 14,922,000 10,479,000
Total 14,922,000 10,479,000

TEN LIFESTYLE MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 August 2024

8. Creditors: amounts falling due within one year note

2024 2023
£ £
Bank loans and overdrafts 4,389,000 1,622,000
Amounts due under finance leases and hire purchase contracts 480,000 1,225,000
Trade creditors 19,861,000 18,764,000
Other creditors 352,000 352,000
Total 25,082,000 21,963,000

TEN LIFESTYLE MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 August 2024

9. Creditors: amounts falling due after more than one year note

2024 2023
£ £
Bank loans and overdrafts 1,011,000 2,950,000
Amounts due under finance leases and hire purchase contracts 3,536,000 600,000
Total 4,547,000 3,550,000

TEN LIFESTYLE MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 August 2024

10. Financial Commitments

Set out more full in the Accounts.

TEN LIFESTYLE MANAGEMENT LIMITED

Notes to the Financial Statements

for the Period Ended 31 August 2024

11. Off balance sheet arrangements

Since the end of the financial year, the Company has: - Won a significant multi-year Extra Large contract in the USA with an existing global corporate client. Ten will transition service from the incumbent high-touch provider in late H1 FY 2025, with the launch of its digitally enabled concierge platform scheduled for H2 FY 2025 - Won a Medium contract in AMEA with a new corporate client, which is expected to transition from the incumbent provider in late H1 FY 2025 - The company, through the parent company Ten Lifestyle Group plc, raised gross proceeds of £5.9m through the secondary placing of 9,332,853 new Ordinary Shares at 63 pence per share. The funds raised will support the Group’s short-term working capital requirements for the launch of the two contract wins, as well as having repaid related party loans outstanding of £1.45m in addition to strengthening its balance sheet. There are no further subsequent events.