Ten Lifestyle trades in line with FY expectations, launches fundraiser

Ten Lifestyle said it expects to report net revenues of £62.9m, down from £63.0m a year earlier, while adjusted underlying earnings were pegged to come in at £12.8m, up 7% year-on-year.

The AIM-listed firm also said it was looking to raise approximately £5.5m via a placing of new ordinary shares at a price of 63.0p each and that it would launch a separate conditional retail offer to existing shareholders of up to 500,000 new ordinary shares.

The net proceeds of the fundraising will be used to fund the operational and working capital investment to support the launch of its new contract, to strengthen its balance sheet and for general working capital purposes. The fundraising price represented a discount of approximately 4.9% to the stock's closing price on 25 September.

As far as the new contract was concerned, Ten said it had won a new multi-year contract in the USA worth over £5.0m per year in corporate revenue, with scope to grow, with an existing global corporate client. Ten will take over from the incumbent high-touch provider towards the end of H125, with the launch of its digitally enabled concierge platform expected during H225.

As of 0950 BST, Ten Lifestyle shares were down 1.04% at 65.56p.

Reporting by Iain Gilbert at Sharecast.com