Travel concierge firm Ten Lifestyle has posted a 47 per cent slump in its earnings as a result of higher costs and the Omicron variant’s impact.
In the six months ended 28 February, the group’s EBITDA went down £1.7m to £0.9m, while its cash and equivalents slumped to £5.1m.
According to chief executive Alex Cheatle, the loss was caused by the company’s decision to hire new staff and retain them despite a fall in bookings caused by the Omicron variant.
Nevertheless, Ten Lifestyle’s net revenue increased 21 per cent to £20.8m, with supplier revenue soaring 167 per cent on 2021 and going back to pre-Covid levels.
“As we anticipated, revenue from corporate clients grew at the start of the period as we accelerated out of the pandemic,” said Cheatle. “The arrival of Omicron at the end of November then stalled growth.
Since the end of February, the company has been on track to recovery, with monthly request numbers increasing in all markets and net revenue now at £23.8m, now above pre-Covid levels.
“We believe the improvements made to our member proposition and operational efficiencies, along with contracted launches in the coming months, our strong pipeline of new business opportunities and the gradual return of demand for our core services, means we are well positioned to continue to drive our growth engine,” he added.