Ten Lifestyle Group (AIM:TENG) shares rose 11% to 82.22p after the customer loyalty and concierge platform raised its outlook for the financial year 2027, saying revenue and adjusted earnings would come in ahead of current market forecasts.
The upgrade was driven by contract momentum building through and beyond the first half, including a new digital customer loyalty contract in the Americas and an agreed launch of its Ten Digital Platform under an existing large contract in Japan.
Contracts won during and after the period, which are expected to launch in the second half of 2026, are expected to support growth into financial year 2027.
The board said current trading since the period end has been in line with expectations for financial year 2026.
Ten reported a 6% rise in net revenue to £33.7 million for the six months ended 28 February 2026, rising to 9% on a constant currency basis.
Adjusted earnings before interest, tax, depreciation and amortisation rose 16% to £7.0 million, or 28% at constant currency, with the adjusted EBITDA margin expanding to 20.7% from 18.9% a year earlier.
Active members grew 23% to 436,000, driven by higher engagement with the group's digital platform.
Ten also reported a 62% customer retention rate attributable to its concierge service, with members saying the offering was a strong or decisive factor in staying with their sponsoring brand.
The company closed the period with net cash of £9.3 million and no long-term debt, having repaid the remaining £0.8 million of outstanding loan notes.
Chief executive Alex Cheatle said the group is seeing strong demand across its pipeline for its full range of services, from digitally enabled to digital-first programmes.