The Pebble Group PLC Announces Half Year Results 2023

Rhea-AI Summary

The Pebble Group announces solid performance in H1 2023 with year-on-year growth. Revenue increased by 5% to £63.3m and operating profit increased by 6% to £3.3m. Adjusted EBITDA is up 12% to £7.5m. Gross profit margin increased by 4.3 percentage points to 42.8%. The Board expects FY 23 results to be in line with market expectations.

Positive

• Solid year-on-year growth in revenue and operating profit
• Adjusted EBITDA increased by 12%
• Gross profit margin improved by 4.3 percentage points

Negative

• None.

UNAUDITED HALF YEAR RESULTS 2023

Solid performance with strategic progress

MANCHESTER, UK / ACCESSWIRE / September 5, 2023 / The Pebble Group (AIM:PEBB)(OTCQX:PEBBF), a leading provider of digital commerce, products and related services to the global promotional products industry, announces its unaudited results for the six months ended 30 June 2023 ("HY 23" or the "Period").

Having achieved solid year on year growth in HY 23, the Board expects that for the year ending 31 December 2023 ("FY 23") the Group's results will be in line with market expectations.

Financials

Statutory results	HY 23	HY 22	Change	FY 22
Revenue	£63.3m	£60.3m	+5%	£134.0m
Gross profit margin	42.8%	38.5%	+4.3ppt	39.3%
Operating profit	£3.3m	£3.1m	+6%	£10.2m
Profit before tax	£3.1m	£2.8m	+11%	£9.7m
Basic earnings per share	1.37p	1.27p	+8%	4.55p

Other financial highlights	HY 23	HY 22	Change	FY 22
Adjusted EBITDA1	£7.5m	£6.7m	+12%	£18.0m
Net cash / (debt)2	£4.2m	£(0.1)m	+£4.3m	£15.1m
Adjusted basic earnings per share3	2.08p	1.88p	+11%	5.78p

Financial highlights and outlook

	Group Adjusted EBITDA up 12% following solid trading across the Group
	Facilisgroup: Revenue for HY 23 of £9.2m up 24% on HY 22 generating £4.3m Adjusted EBITDA (HY22: £3.5m)
	Brand Addition: Revenue for HY 23 of £54.2m up 2.5% on HY 22 generating £4.5m Adjusted EBITDA (HY 22: £4.4m)
	Gross profit margins increase 4.3 percentage points to 42.8%, driven by higher contribution from Facilisgroup and improved margins at Brand Addition of 33.2% (HY 22: 29.9%)
	Balance sheet strong and working capital cycle following its normal pattern, with good profit to cash conversion resulting in a net cash position at the full year expected to be circa £17m
	The Board expects FY 23 results to deliver on market expectations

Operational highlights

	Strong profit margins maintained in parallel with investments into our technology, sales and marketing strategies
	In Facilisgroup: · New wins saw Syncore grow to 238 Partners at 4 September 2023 (31 December 2022: 225) with a strong pipeline · Commercio Stores, our ecommerce offering introduced in 2022, became revenue generating with, to date, circa 20% of Partners utilising the product · Good progress made on the development of the Orders product, aimed at smaller distributors, with a Beta version launched in H2 2023
	Brand Addition revenue growth continues to be underpinned by its diverse and loyal client base with investments into ESG and global capabilities further differentiating the business with its target market

Commenting on the results, Chris Lee, Chief Executive Officer of Pebble Group said: "Our attractive markets and blue-chip clients have seen Facilisgroup and Brand Addition trade solidly in the first half, as we deliver against our stated strategies. Both businesses have strong and differentiated market positions and we look forward to FY 23 when results are expected to be in line with market expectations. We anticipate that Facilisgroup will become the majority contributor to our profits as we move through 2024."

1	Adjusted EBITDA means operating profit before depreciation, amortisation and share-based payments charge
2	Net cash/(debt) is calculated as cash and cash equivalents less borrowings (excluding lease liabilities)
3	Adjusted basic earnings per share ("EPS") represents Adjusted Earnings meaning profit after tax before amortisation of acquired intangible assets and share-based payments charge divided by a weighted average number of shares

Online analyst and investor presentation

A presentation for sell-side analysts will take place at 8:00am today by webinar. Those wishing to attend should email investors@thepebblegroup.com

The management team is hosting an online investor presentation with Q&A at 12.30pm on Friday, 8 September 2023. To participate, please register with PI World at https://bit.ly/PEBB_H123_webinar

Enquiries:

The Pebble Group Chris Lee, Chief Executive Officer Claire Thomson, Chief Financial Officer +44 (0) 750 012 4121	Temple Bar Advisory (Financial PR) Alex Child-Villiers William Barker / Sam Livingstone +44 (0) 207 183 1190 pebble@templebaradvisory.com
Grant Thornton UK LLP (Nominated Adviser) Samantha Harrison / Harrison Clarke / Ciara Donnelly +44 (0) 207 184 4384	Berenberg (Corporate Broker) Ben Wright / Marie Moy / Yasmina Benchekroun +44 (0) 203 207 7800

About The Pebble Group

The Pebble Group is a provider of digital commerce, products and related services to the global promotional products industry, comprising two differentiated businesses, Facilisgroup and Brand Addition, focused on specific areas of the promotional products market. For further information, please visit www.thepebblegroup.com.

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SOURCE: The Pebble Group PLC

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