Ten Lifestyle Group PLC (LON:TENG) shares dropped on Friday as the firm warned that its net revenue growth for the current year will take a hit from the coronavirus outbreak.
The provider of concierge services said in a trading update that it had already experienced “some disruption” to its Asia-Pacific (APAC) operations over January and February and that going forward the outbreak “may impact near-term general marketing spend and initiatives, as well as the timing of client launches”.
However, the company added that service activity currently remained at forecast levels and it expected “continuing operational efficiencies” to mitigate any impact of the virus on adjusted earnings (EBITDA) and net cash for the year.
For the six months ended 29 February, Ten Lifestyle said it was expected to be adjusted EBITDA breakeven for the period, in line with expectations and better than the £2.5mln EBITDA loss in the prior year.
The company also expects to report a year-on-year net revenue increase from existing contracts and new launches, albeit at a lower growth rate than expected as a result of slower pipeline conversion and launch activation.
The shares tumbled 9.6% to 75p in early deals on Friday.
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