TIDMTENG
RNS Number : 0061I
Ten Lifestyle Group PLC
30 March 2020
30 March 2020
Ten Lifestyle Group plc
("Ten" or the "Company")
Covid-19 Update, Cost Saving Initiatives and PDMR Dealing
Ten Lifestyle Group plc (AIM: TENG), a leading
technology-enabled lifestyle and travel service platform provides
an update on the impact of the COVID-19 ("Coronavirus") pandemic
and how the business is implementing cost saving initiatives,
including the announcement of a voluntary salary sacrifice in
exchange for share option grants.
Coronavirus Update
As outlined as part of the Trading Update announced on 6 March
2020, Ten's business model allows it to continue to deliver
services relevant to its members and corporate clients. Revenue is
driven substantially from service delivery rather than the
conversion of bookings.
Around the world, Ten's robust operating model and business
continuity plans have enabled the business to migrate staff, where
it has been required, to homeworking, maintaining PCI compliance
with no service interruption.
Ten is rapidly adapting to meet the changing needs of members
during this time. March to date has seen record numbers of members
using the service and a record number of individual requests being
placed with the service. However, travel bookings have been
significantly impacted with high levels of cancellations and
refunds. This will impact revenue from commission payments(1) until
global travel begins to recover. Furthermore, self-isolation will
reduce restaurant and entertainment requests and there is no
certainty that our new types of activity, relevant to people at
home, will fully compensate for this impact in the months beyond
March.
The Board recognises the considerable uncertainty during this
period but is encouraged that the Company's blue-chip client base,
made up predominantly of private and retail banking providers,
including Coutts and HSBC Jade in the UK, is stable. Corporate
clients' feedback is that they remain keen to support their
high-value customers throughout this challenging period.
The Board reaffirms its expectations, as announced on 6 March
2020, for the half year results for the six-month period to 29
February 2020, which it expects to announce on Thursday 14 May 2020
.
Due to the macroeconomic uncertainties, the Board expects to
provide a further update on guidance once more clarity is known
around the outlook of the business.
Cost Saving Initiatives
Despite the flexible nature of Ten's revenue and servicing
model, and the quality of its client list, the effect of the
Coronavirus pandemic in the short and mid-term remains uncertain.
As a result, the Company is taking prudent actions to reduce cost
in the business and improve cashflow.
These actions include, but are not limited to, successful
renegotiations with key suppliers; a review of projects to focus on
the most strategic core investments (including continued
development of our technology platform); a freeze on employee
bonuses; and voluntary salary sacrifice in exchange for share
option grants (as detailed below).
Given the ongoing uncertainty around the Coronavirus pandemic,
these measures will help Ten maintain a healthy financial position
and help ensure its ability to finance ongoing operations. Ten had
net cash of GBP9.6m at end of February 2020 and no debt.
Share Option Grants and PDMR Dealings
On 27 March 2020, Ten granted options over a total of 3,708,966
ordinary shares of 0.1p each in the Company ("Ordinary Shares")
with an exercise price of 70p, exercisable for up to three years
from the date of grant (the "Options"), to certain employees and
contractors of the Company including the 'persons discharging
managerial responsibilities' ("PDMRs") listed below.
The grant of these Options is a cash saving initiative in which
for every GBP1 of salary certain employees and contractors forgo
over a 4-month period they will receive five options over Ordinary
Shares in the Company.
The exercise price and number of options granted have been
determined using the Black Scholes model for option pricing to
ensure that the total economic value of these Options is equal to
the value of the total salary foregone.
Over 150 individuals have chosen to participate. The total cash
saving to the Company over the 4-month period will be GBP0.8m.
PDMR Position Number of new Resulting total options
Options granted held over Ordinary
Shares
Chief Executive
Alex Cheatle Officer 249,167 1,082,875
------------------------- ----------------- ------------------------
Group Chief Operational
Officer and Chief
Executive Officer
Andrew Long (Asia) 240,941 674,649
------------------------- ----------------- ------------------------
Client Services
Sarah Hornbuckle Director 60,008 215,716
------------------------- ----------------- ------------------------
Chief Financial
Alan Donald Officer 75,000 258,708
------------------------- ----------------- ------------------------
Toby Gauvain President 116,667 356,667
------------------------- ----------------- ------------------------
The notification below, made in accordance with the Market Abuse
Regulation, provides further details in relation to these PDMR
dealings.
Employee Benefit Trust
The Company announces that on 27 March 2020, the Ten Group
Employee Benefit Trust established on 22 February 2012 (the "EBT")
was granted an option for NWH (Guernsey) Limited (the "Trustee") to
subscribe for 400,000 Ordinary Shares with an exercise price of
70p, exercisable for up to five years from the date of grant (the
"EBT Options"). These EBT Options are to be held in the EBT and are
intended to be used to satisfy current and future share awards made
under the Company's employee incentive and share option schemes.
The EBT will also have the ability to sell resulting Ordinary
Shares in order to generate cash for employee loyalty programmes.
The EBT is a discretionary trust and the class of beneficiaries of
the EBT includes employees and former employees of the Company and
their relatives. The EBT is primarily intended to reward employees,
not management, who have shown commitment to the Company and who
may then benefit in the future in scenarios where the Company's
share price rises materially above the exercise price of 70p. This
transaction also avoids the Company having to fund the EBT and
therefore is another cash saving initiative during this uncertain
period.
Following this transaction, a total of 400,000 options over
Ordinary Shares will be held by the Company's EBT and a total of
553,546 Ordinary Shares continue to be held by the EBT.
Alex Cheatle, CEO, Ten Lifestyle Group plc, commented:
"Our priority in this difficult time is supporting our members
and their families in relevant ways. While traditionally we help
organise travel, events and dining, our experts have been able to
rapidly shift their focus to also supplying our members with what
they need, whether that be a new home office or helping to
rearrange Easter travel plans.
We are seeing significant benefits from our investment into
building a leading technology platform from which we help our
members. On this basis, all of our employees are also able to work
from home and maintain our high standards of customer service while
also following government guidance.
I would like to take this opportunity to thank our employees,
members and corporate clients for their continued support."
(1) Ten's revenue from its supplier base, such as hotels,
airlines, and event promoters which sometimes pay commission to Ten
constituted 12% of Net Revenue for the 2019 financial year, as
reported in the 2019 Annual Report and Accounts.
For further information, please visit https://www.tengroup.com/ or contact:
Ten Lifestyle Group Plc via Tavistock
Alex Cheatle, Chief Executive Officer
Alan Donald, Chief Financial Officer +44 (0)20 7479
3427
Peel Hunt LLP, Nominated Advisor and Broker
Edward Knight
George Sellar +44 (0) 20 7418
Nick Prowting 8900
Tavistock, Financial PR & IR
Jos Simson
Simon Hudson +44 (0) 20 7920
Heather Armstrong 3150
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name Alex Cheatle
--------------------------------- -------------------------------------------
2 Reason for the notification
------------------------------------------------------------------------------
a) Position/status Chief Executive Officer
--------------------------------- -------------------------------------------
b) Initial notification Initial Notification
/Amendment
--------------------------------- -------------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
------------------------------------------------------------------------------
a) Name Ten Lifestyle Group Plc
--------------------------------- -------------------------------------------
b) LEI 213800YK94ZUOJUMN686
--------------------------------- -------------------------------------------
4 Details of the transaction(s): section to be repeated for
(i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions have
been conducted
------------------------------------------------------------------------------
a) Description of the Options over Ordinary shares of 0.1p
financial instrument, each
type of instrument
--------------------------------- -------------------------------------------
Identification code ISIN: GB00BF188X60
--------------------------------- -------------------------------------------
b) Nature of the transaction Issue of Options
--------------------------------- -------------------------------------------
c) Price(s) and volume(s) Price(s) Volume(s)
---- --------------------------------- ---------------------- ----------------
Exercise price
of GBP0.70 249,167
------------------------------------------------------------- ----------------
d) Aggregated information
---------------------------------------------------------- ------------------
- Aggregated volume 249,167
--------------------------------- ------------------------------------------------
- Price NA
--------------------------------- ------------------------------------------------
e) Date of the transaction 27 March 2020
--------------------------------- -------------------------------------------
f) Place of the transaction Outside a trading venue
--------------------------------- -------------------------------------------
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name Andrew Long
--------------------------------- -------------------------------------------
2 Reason for the notification
------------------------------------------------------------------------------
a) Position/status Group Chief Operational Officer and
Chief Executive Officer (Asia)
--------------------------------- -------------------------------------------
b) Initial notification Initial Notification
/Amendment
--------------------------------- -------------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
------------------------------------------------------------------------------
a) Name Ten Lifestyle Group Plc
--------------------------------- -------------------------------------------
b) LEI 213800YK94ZUOJUMN686
--------------------------------- -------------------------------------------
4 Details of the transaction(s): section to be repeated for
(i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions have
been conducted
------------------------------------------------------------------------------
a) Description of the Options over Ordinary shares of 0.1p
financial instrument, each
type of instrument
--------------------------------- -------------------------------------------
Identification code ISIN: GB00BF188X60
--------------------------------- -------------------------------------------
b) Nature of the transaction Issue of Options
--------------------------------- -------------------------------------------
c) Price(s) and volume(s) Price(s) Volume(s)
---- --------------------------------- ---------------------- ----------------
Exercise price
of GBP0.70 240,941
------------------------------------------------------------- ----------------
d) Aggregated information
---------------------------------------------------------- ------------------
- Aggregated volume 240,941
--------------------------------- ------------------------------------------------
- Price NA
--------------------------------- ------------------------------------------------
e) Date of the transaction 27 March 2020
--------------------------------- -------------------------------------------
f) Place of the transaction Outside a trading venue
--------------------------------- -------------------------------------------
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name Sarah Hornbuckle
--------------------------------- -------------------------------------------
2 Reason for the notification
------------------------------------------------------------------------------
a) Position/status Client Services Director
--------------------------------- -------------------------------------------
b) Initial notification Initial Notification
/Amendment
--------------------------------- -------------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
------------------------------------------------------------------------------
a) Name Ten Lifestyle Group Plc
--------------------------------- -------------------------------------------
b) LEI 213800YK94ZUOJUMN686
--------------------------------- -------------------------------------------
4 Details of the transaction(s): section to be repeated for
(i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions have
been conducted
------------------------------------------------------------------------------
a) Description of the Options over Ordinary shares of 0.1p
financial instrument, each
type of instrument
--------------------------------- -------------------------------------------
Identification code ISIN: GB00BF188X60
--------------------------------- -------------------------------------------
b) Nature of the transaction Issue of Options
--------------------------------- -------------------------------------------
c) Price(s) and volume(s) Price(s) Volume(s)
---- --------------------------------- ---------------------- ----------------
Exercise price
of GBP0.70 60,008
------------------------------------------------------------- ----------------
d) Aggregated information
---------------------------------------------------------- ------------------
- Aggregated volume 60,008
--------------------------------- ------------------------------------------------
- Price NA
--------------------------------- ------------------------------------------------
e) Date of the transaction 27 March 2020
--------------------------------- -------------------------------------------
f) Place of the transaction Outside a trading venue
--------------------------------- -------------------------------------------
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name Alan Donald
--------------------------------- -------------------------------------------
2 Reason for the notification
------------------------------------------------------------------------------
a) Position/status Chief Finance Officer
--------------------------------- -------------------------------------------
b) Initial notification Initial Notification
/Amendment
--------------------------------- -------------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
------------------------------------------------------------------------------
a) Name Ten Lifestyle Group Plc
--------------------------------- -------------------------------------------
b) LEI 213800YK94ZUOJUMN686
--------------------------------- -------------------------------------------
4 Details of the transaction(s): section to be repeated for
(i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions have
been conducted
------------------------------------------------------------------------------
a) Description of the Options over Ordinary shares of 0.1p
financial instrument, each
type of instrument
--------------------------------- -------------------------------------------
Identification code ISIN: GB00BF188X60
--------------------------------- -------------------------------------------
b) Nature of the transaction Issue of Options
--------------------------------- -------------------------------------------
c) Price(s) and volume(s) Price(s) Volume(s)
---- --------------------------------- ---------------------- ----------------
Exercise price
of GBP0.70 75,000
------------------------------------------------------------- ----------------
d) Aggregated information
---------------------------------------------------------- ------------------
- Aggregated volume 75,000
--------------------------------- ------------------------------------------------
- Price NA
--------------------------------- ------------------------------------------------
e) Date of the transaction 27 March 2020
--------------------------------- -------------------------------------------
f) Place of the transaction Outside a trading venue
--------------------------------- -------------------------------------------
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name Toby Gauvain
--------------------------------- -------------------------------------------
2 Reason for the notification
------------------------------------------------------------------------------
a) Position/status President
--------------------------------- -------------------------------------------
b) Initial notification Initial Notification
/Amendment
--------------------------------- -------------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
------------------------------------------------------------------------------
a) Name Ten Lifestyle Group Plc
--------------------------------- -------------------------------------------
b) LEI 213800YK94ZUOJUMN686
--------------------------------- -------------------------------------------
4 Details of the transaction(s): section to be repeated for
(i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions have
been conducted
------------------------------------------------------------------------------
a) Description of the Options over Ordinary shares of 0.1p
financial instrument, each
type of instrument
--------------------------------- -------------------------------------------
Identification code ISIN: GB00BF188X60
--------------------------------- -------------------------------------------
b) Nature of the transaction Issue of Options
--------------------------------- -------------------------------------------
c) Price(s) and volume(s) Price(s) Volume(s)
---- --------------------------------- ---------------------- ----------------
Exercise price
of GBP0.70 116,667
------------------------------------------------------------- ----------------
d) Aggregated information
---------------------------------------------------------- ------------------
- Aggregated volume 116,667
--------------------------------- ------------------------------------------------
- Price NA
--------------------------------- ------------------------------------------------
e) Date of the transaction 27 March 2020
--------------------------------- -------------------------------------------
f) Place of the transaction Outside a trading venue
--------------------------------- -------------------------------------------
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END
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