Revenues soar for Ten Way of life as banks splash the money
Rate of interest hikes have boosted concierge group Ten Way of life’s revenues as banks with additional cash handy shell out on its providers.
Ten, whose shoppers embody Coutts and Natwest Black, stated internet income for the yr rose 35 per cent to round £46.8m yesterday, beating forecasts of £45m.
The UK agency presents preferential entry to top-end experiences, together with last-minute stays at Claridges and tables on the high Michelin-starred eating places.
With 85 per cent of its income coming from banks, who pay a good-looking price for Ten to offer its most prized clients a five-star expertise, the enterprise mannequin hinges on cash-rich clients and banks prepared to splash.
Based in central London in 1998, 70 per cent of its enterprise is now exterior of the UK.
Co-founder and CEO Alex Cheatle informed Metropolis A.M. that this world growth has been an extremely rewarding expertise for the agency.
“As soon as you possibly can run a service in London, the remainder of the world is fairly simple,” he stated, including that the wealthy tradition and complexity was an excellent basis.
Peel Hunt additionally praised Ten for its daring funding technique in recent times.
“Ten took the choice in winter 2021 to speculate for the demand it was seeing, which was scuppered by Omicron,” analysts stated. “However that strategic choice has been vindicated and places Ten in a really robust place.”
Ten has invested round £90m in its platform within the final decade, which Peel Hunt stated allowed Ten to take care of 100 per cent materials shopper retention, particularly banks.
Shares have been down two per cent this afternoon regardless of the upbeat set of outcomes, which provides to its close to 50 per cent plunge within the yr to this point.
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