Shares dropped in Ten Lifestyle Group PLC on Friday after stating that it expects earnings for its 2022 financial year to be below expectations, due to the effect of the Omicron variant.

Shares in the London-based lifestyle and travel service platform were 23% lower at 82.00 pence on Friday in London.

For the year ending August 31, Ten Lifestyle expects to report a rise in adjusted earnings before interest, tax, depreciation and amortisation above the £4.4 million posted the year before, but the figure is set to be below expectations.

This is due to a reduction in member requests since December due to the emergence of the Omicron variant.

In addition, net revenue for the year remains in line with management expectations, as new contract wins launching in the second half and the easing pandemic offsets the effect of Omicron.

Looking further ahead, Ten Lifestyle expects the new contract wins to increase revenue and profitability in line with its expectations for the 2023 financial year.

Concerning the Ukraine invasion, the group expects its effects to be limited, as only 2% of annual net revenue is related to Russia and the directly affected region.

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