Two gaps in a record year

Ten Technologies Group, the concierge and loyalty platform provider formerly known as Ten Lifestyle Group, described its year to 31 August 2026 as a record across revenue, profit, cash and active members in a trading update on 16 September. (LSE:TENG) Beneath those headlines sit two gaps worth examining: the difference between reported and constant-currency growth, and the distance between adjusted EBITDA and free cash flow.

Its most recent filings were an Options grant on 9 October and the 1 October Lola Partnership announcement; full-year results have not yet been published.

The headline figures

Net Revenue is expected to be about £69.7m, up 6% from £65.7m, or 8% at constant currency. (LSE:TENG) Adjusted EBITDA is expected to rise 10% to about £16.1m from £14.6m, or 20% at constant currency, with Margin improving to about 23% from 22.2%. Active members, those who used the platform in the previous 12 months, rose 23% to 461,000. All of these are unaudited trading update figures.

During the second half, Ten won a medium-sized digital-first loyalty contract in the Americas and a medium contract with a new client launching a consumer concierge service. (LSE:TENG) It also launched a fully digital lifestyle platform to more than one million HSBC UK Premier customers and the Ten Digital Platform in Japan. Ten defines medium contracts as worth £0.25m to £2m a year.

How much did currency cost?

The constant-currency figures suggest exchange rates took a sizeable bite. (LSE:TENG) On our rough calculation, applying the constant-currency growth rates to the prior-year base implies EBITDA of around £17.5m and net revenue of around £71m before translation effects, so currency may have reduced reported EBITDA by roughly £1.4m and revenue by about £1.3m. This is our approximation; the company did not quantify the effect or name the currencies involved.

The point matters because Ten operates from more than 20 offices serving over fifty corporate clients, many of them international banks. When sterling strengthens, overseas profits translate into fewer pounds even if local performance is unchanged. The EBITDA effect looks proportionally larger than the revenue effect, which on our reading implies that overseas operations carry above-average margins.

From EBITDA to cash

Adjusted free cash flow, which adds back items, is expected to be about £2.1m, up from £1.2m. On our calculation that is roughly 13% of adjusted EBITDA, against about 8% a year earlier. Net cash rose to about £11.1m from £9.7m, after one-off restructuring costs, with no long-term Debt and an undrawn £5.0m revolving Credit facility.

The company said Investment in technology will be maintained, while further EBITDA growth should support higher free cash flow. The update does not break down capital expenditure, capitalised development, leases or tax, so the full bridge from EBITDA to cash must await the annual results.

Incentives and the share price

On 9 October Ten granted 15,000 options under its company share option plan to each of four senior managers, including the chief executive and chief financial officer, at an exercise price of 96p. The options become exercisable after three years, subject to conditions. The shares closed the 3 November session at 93.5p, according to LSE delayed data, slightly below that exercise price, so the options currently lack value.

Risks and next steps

Risks include continued currency translation pressure, dependence on large multi-year contracts with financial institutions and other premium brands, contract renewal timing, and the pace at which digital adoption lowers the cost to serve. New programmes, including an AMEA Wealth contract expected to become a large contract in FY27, are management expectations rather than reported revenue.

Audited FY26 results are the next key disclosure, although no date had been announced in the material reviewed.