TIDMPEB
RNS Number : 3764K
Pebble Beach Systems Group PLC
05 May 2022
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 ("MAR") as it forms
part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"). Upon the publication of this
announcement, the inside information is now considered to be in the
public domain for the purposes of MAR.
Pebble Beach Systems Group plc
Final Results for the year ended 31 December 2021
Pebble Beach Systems Group plc (AIM: "PEB", "Pebble" or the
"Group"), a leading global software business specialising in
playout automation and content management solutions for the
broadcast and streaming service markets, is pleased to announce its
final results for the year ended 31 December 2021.
Financial Headlines
2021 2020
------------------------------------ --------------- ----------
Revenue GBP10.6m GBP8.4m
Gross profit GBP8.1m GBP6.4m
Gross margin 77% 77%
Adjusted EBITDA* GBP3.3m GBP2.7m
Adjusted EBITDA margin 31% 32%
Pre-tax profit for the year GBP1.5m GBP1.1m
Adjusted EPS** 1.2p 1.1p
Order Intake GBP13.7m GBP7.8m
Cash generated from operations GBP3.8m GBP2.5m
Cash conversion of adjusted EBITDA 116% 93%
Net Debt*** GBP5.9m GBP7.7m
Headlines
-- Strong performance as business successfully adapted to the
Covid pandemic with revenue up 27% on 2020. Recurring revenue from
support contracts up 15% to GBP4.6 million, being 43% of total
revenue
-- Order intake was up 75% on 2020 and when adjusting for
Covid-related delays, order intake was still
up circa 17%
-- Adjusted EBITDA was up 23% and cash conversion of adjusted
EBITDA improved 23 percentage points.
-- Increased investment in new digital platform to establish all-IP workflows
-- Strategic move to a remote working organisation in July 2021
delivering operational benefits in terms of resilience,
organisational growth and performance. Won the UK Company Culture
Award for "Remote Team of the Year" in April 2022
-- Reduced long-term bank debt by a further GBP1.0 million, with
net debt at year end of GBP5.9 million (2020: GBP7.7 million)
-- Bank facilities re-negotiated in April 2022 with term loan facility until 30 September 2024
-- The current financial year has started in line with expectations
* Adjusted EBITDA is defined as operating profit before
depreciation, amortisation and impairment of acquired intangibles,
amortisation of capitalised development costs, share based payment
expense, non-recurring items and exchange gains or losses charged
to the income statement.
** Adjusted EPS is calculated on the same basis as basic
earnings per share except for the adding back of the after-tax
effect of the adjustments for amortisation and impairment of
acquired intangibles, share based payment expense and exchange
gains and losses.
*** Net debt excludes liabilities in respect of right of use
assets recognised under IRFS 16.
- ends -
For further information please contact:
Peter Mayhead - CEO +44 (0) 75 55 59
David Dewhurst - CFO 36 02
finnCap Ltd (Nominated Adviser
and Broker )
Marc Milmo / Teddy Whiley - Corporate +44 (0) 207 220
Finance 0500
Tim Redfern / Sunila de Silva
- ECM
The Company is quoted on the LSE AIM market (PEB.L). More
information can be found at pebbleplc.com.
About Pebble Beach Systems
Pebble Beach Systems (trading as Pebble) is a world leader in
designing and delivering automation, integrated channel and
virtualised playout software solutions, with scalable products
designed for applications of all sizes. Founded in 2000, Pebble has
commissioned systems in more than 70 countries, with proven
installations ranging from single up to over 150 channels in
operation, and around 2000 channels currently on air under the
control of our automation technology. An innovative, agile company,
Pebble is focused on discovering its customers' requirements and
pain points, designing solutions which will address these elegantly
and efficiently, and delivering and supporting these professionally
and in accordance with its users' needs.
Forward-looking statements
Certain statements in this announcement are forward-looking.
Although the Group believes that the expectations reflected in
these forward-looking statements are reasonable, it can give no
assurance that these expectations will prove to be correct. Because
these statements involve risks and uncertainties, actual results
may differ materially from those expressed or implied by these
forward-looking statements. The Group undertakes no obligation to
update any forward-looking statements whether as a result of new
information, future events or otherwise. Nothing in this
announcement should be construed as a profit forecast.
CHAIRMAN'S STATEMENT
INTRODUCTION
I am very pleased to be reporting on a year of significant
achievement for the Group.
Throughout 2021 we saw our customers' confidence return and
investment decisions that were put on hold during 2020 were clearly
being re-initiated, resulting in order intake rising 75% to GBP13.7
million. A proportion of this growth can be attributed to the
understandable delays to orders in 2020 that came through in 2021,
however, underlying order growth delivered in the year was
c.17%.
Observations of the market's priorities during 2021 have
reaffirmed our strongly held view that our current mission to
support broadcasters by providing technology solutions to
facilitate their transition from traditional broadcast
infrastructure to more flexible IP-based technologies is
strategically correct. Consequently, we again increased the level
of investment in our new digital platform, Oceans, which has all
the benefits of a cloud native environment allowing our customers
to establish all-IP workflows whilst retaining their ability to
utilise investment made in our existing installed solutions.
We have demonstrated that our ability to operate successfully in
the context of the Covid pandemic is fully sustainable and, when
coupled with the strategic decision to adopt a remote working
model, positions us as a strong, resilient organisation that is
responsive to our customers' needs.
In April 2022, we were delighted to win the UK Company Culture
Award for "Remote Team of the Year". This achievement is a
testimony to the huge efforts every employee has made since our
move to fully remote working in 2021. It is recognition of the
success of our operating model changes and keeps the momentum
behind the continued improvements we are making as we realise our
vision to ensure equality of opportunity for all employees.
FINANCIAL RESULTS
Revenue was up 27% at GBP10.6 million (2020: GBP8.4 million)
including recurring revenue from support contracts up 15% to GBP4.6
million (2020: GBP4.0 million). Recurring revenue represents 43% of
total revenue and provides greater visibility of future years'
forecasts.
Gross profit was GBP8.1 million at a margin of 77% (2020: GBP6.4
million at a margin of 77%).
Adjusted EBITDA was GBP3.3 million (2020: GBP2.7 million),
representing 31% of revenue (2020: 32%).
Conversion of profit to cash remained strong in 2021, with 116%
of Adjusted EBITDA converted to cash generated from operations
(2020:93%) allowing investment in new products and services at the
same time as continuing to reduce our levels of debt.
We continue to view investment in the development of new
products and services as key to future growth and continue to
innovate by investing in new technologies. In the year, we
capitalised GBP1.5 million of development costs (amortised GBP0.9
million), (2020: capitalised GBP1.3 million) (amortised GBP0.8
million). To evidence this, R&D expenditure as a proportion of
revenue was 19% (2020: 20.8%).
Net finance costs remained level in 2021 reflecting the Group's
pay-down of GBP1.0 million of its revolving credit facility ("RCF")
and a marginally reduced interest rate of 3.58% (2020: 3.64%)
offsetting the impact of interest costs in the United States.
The profit before tax for the year was GBP1.5 million (2020:
GBP1.1 million). The adjusted earnings per share was 1.2p (2020:
1.1p)
Net debt (excluding IFRS 16 leases) at the year-end was reduced
by GBP1.8 million to GBP5.9 million (2020: GBP7.7 million),
comprising a much-improved cash position at year end of GBP1.6
million (2020: GBP0.8 million) and debt of GBP7.5 million (2020:
GBP8.5 million).
New TERM LOAN April 2022
We enjoy a good relationship and regular communication with our
bank, Santander, who remain very supportive of our strategy to
invest in developing our new technology solutions. Post period end,
on 13 April 2022, we were delighted to sign a new term loan
facility, refinancing the existing GBP7.15 million RCF agreement.
The new term loan secures a GBP7.15 million facility until 30
September 2024, with revised financial covenants and a repayment
schedule consistent with previous years.
MARKET POSITIONING
Pebble is a leading global software business specialising in
playout automation and content management solutions for broadcast
and streaming services markets.
The main sector within the media tech market that is served by
Pebble's software is the playout automation market. Within this
sector, the customers that we principally interact with are
broadcasters, either directly or through service providers who
deliver playout services to those broadcasters, many of whom are
global organisations . These customers include companies such as
Fox News, CNBC, IMG, Phoenix Television and Globosat Canais. In
addition to playout automation, Pebble's other core software
technology is the Integrated Channel solution. These solutions have
been designed to support broadcasters and service providers to
deliver their scheduled content in a reliable and secure way. As
downtime is not acceptable in the broadcast industry, playout
software is exceptional at flagging any issues, creating backup
channels (redundancy) and providing disaster recovery.
One of Pebble's key strengths is an ability to focus on
collaboration with customers to determine their requirements and
design solutions which address their needs elegantly and
efficiently. During the lifecycle of the software solution, we
deliver full support services in accordance with customer
requirements.
Pebble's existing solutions consist of:
Automation : highly scalable enterprise level software solution
for broadcasters or service providers with complex workflow
requirements built around best-of-breed technology. The software
allows flexible deployment either on premises, on virtual machines
or in the cloud with exceptional levels of system resiliency.
Automation Lite : a simpler software offering optimised to allow
control of up to six channels, offering best-of-breed functionality
at an entry-level price.
Integrated Channel : under the control of our Automation
software this solution provides a one-stop-shop for channel playout
offering audio, video and graphics functionality. Hosted on
powerful servers, the software provides all the functionality of a
traditional broadcast chain.
Virtualised Playout : a software-only implementation of the
Integrated Channel solution, with the ability to host channels in a
private data centre or public cloud. Virtualised Playout can launch
and decommission channels for short term requirements and host
operational infrastructure in a standard data centre
environment.
Playout in a box : a compact playout solution, combining a 'best
of breed' approach with an affordable price point but without the
need for high levels of flexibility. Controlling up to six channels
the self-contained Playout in a box solution is suitable for new
market entrants, for testing new channels, or as a backup or
disaster recovery system for a smaller channel.
In addition to these core technology solutions, Pebble also
provides applications with discrete functionality. The current
range includes:
Pebble Remote : secure, real-time access to the playout
environment from anywhere, anytime. It is easy to use with
intuitive interfaces and aimed at anyone with a Pebble solution who
is seeking to control, monitor and manage channels remotely.
Pebble Control : a recent release providing connection
management of IP devices suitable for TV stations, OB trucks,
production houses or anywhere that uses IP workflows. Control is
providing Pebble with the opportunity to enter new markets outside
of the automation space.
Orchestration : a soon to be released tool for the design and
management of complex workflows. The first fully Oceans-native
capability initially focussed on replacing and significantly
enhancing the file management capability provided by the Pebble's
current Automation software.
MARKET OPPORTUNITY AND PRODUCT DEVELOPMENT ROADMAP
We are very focused on recognising Pebble's core strengths and
technical capability to ensure we continue to enhance our portfolio
of software solutions to meet the evolving requirements of our
customers. An industry report from June 2020, commented that the
top "Media Tech Priorities" for the industry were: multi-platform
content delivery, 4K/UHD production, IP infrastructure, remote
production and cloud-based solutions. Our directors believe that
Pebble's current range of solutions, together with the progress
being made against its product roadmap, will ensure that our
technology offering will continue to be meet these priorities:
Multi-platform content delivery
For Pebble, multi-platform content delivery is its ability to
deliver complex workflows, Video On Demand, OTT and On-demand.
During the year, we supported TV2 Denmark, who acquired rights for
major sporting events including the Tour de France, Wimbledon and
the Euros, with their OTT service "TV 2 Play". We continue to
invest in the development of our Orchestration Engine, responding
to this type of market demand.
4K/UHD production
4K and UHD TV global sales have consistently increased since
2014 according to recent industry statistics, and it is our belief
that this area is becoming a priority within the broadcast sector.
Pebble has UHD installations such as the installation at IMG
Studios, a state-of-the-art broadcast production and worldwide
distribution facility based near London. Currently, these growing
signal complexities are addressed through expensive third-party
hardware but in future, Pebble's product development roadmap is
focused on an in-house developed cloud-based media processing
engine, to remove the dependency on third-party hardware.
IP infrastructure
IP infrastructure has been an area of focus for Pebble for some
time, and we continue to cement our position as the experts in IP.
Our customers are typically either transitioning to IP
infrastructure from the legacy, SDI, or are implementing IP
infrastructure in a new broadcasting facility, and Pebble supports
both. Pebble Control, is a software solution for device
configuration and monitoring, designed with security at its core.
In the future, Pebble's Ocean's platform will be hosting an
automation engine that is IP-native, allowing full, public-cloud
deployment.
Remote production
At the beginning of 2020, coronavirus lockdowns across the world
pushed a surge in remote working across many industries globally,
the broadcast industry included. Our web-based monitoring software,
Pebble Remote, gives customers secure, real-time access from
anywhere allowing Pebble to successfully deliver against customers'
needs as they shifted to geographically dispersed operations.
Cloud Compute
Pebble is also seeking to better address the Cloud Compute
priority. We believe the move to remote working has accelerated the
move to the cloud. Over 50 percent of broadcasters have already
deployed some form of cloud-based technology with 40 percent
stating they are likely to continue adoption according to data from
the IABM. At present, Pebble's technology can be utilised through
the cloud for storage and hosting capabilities. To further enhance
our offering, the Oceans platform is being designed to provide
customers with software that is fundamentally cloud-centric.
Having regard to the key trends being seen in the industry, and
the undoubted market opportunity before it, the Board remains
focussed on delivering against its product development roadmap
of:
(i) Oceans Automation; an automation only capability to replace
the current playout automation offering with a secure cloud-native
solution.
(ii) Media Processing Engine; to reduce the requirement for
hardware to provide video playout capability. By developing a
software solution, this will enable Pebble to provide a fully cloud
native integrated channel capability.
(iii) Pebble Control; by accelerating the ongoing development of
its IP control tool, the directors believe that this will provide
the opportunity to target the product into any market requiring IP
network-based device control.
GOING CONCERN
The directors are required to assess the Company's and the
Group's ability to continue to trade as a going concern.
At 31 December 2021, the Group's net debt was GBP5.9 million
(2020: GBP7.7 million), comprising cash of GBP1.6 million (2020:
GBP0.8 million) and the drawn down RCF from Santander of GBP7.5
million (2020: GBP8.5 million).
We enjoy a close relationship with our bank and have regular
review meetings with them. On 10 March 2021, we signed a 12-month
extension to the RCF and have made all the required repayments of
capital and interest due and met the financial covenants. On 13
April 2022, we signed a new term loan through to 30 September 2024,
which re-financed the existing GBP7.15m RCF at the same level of
commitment, with repayment levels consistent with previous years
and appropriate financial covenants.
To assess the appropriateness of preparing financial statements
on a going concern basis, management prepared detailed projections
of the consolidated income statements, balance sheets and cash flow
statements through to 31 December 2023. This review period extends
to the end of the financial year for 2023, which is looking forward
for four six-month periods beyond that covered by the current
annual report. The projections included testing against the minimum
liquidity and cash flow cover covenants required by the new term
loan facility.
These projections used the budget for 2022 and updated for
current trading and forecasts. This analysis was then extended to
the end of 2023. The projections were stress tested and pipeline
project orders for 2022, at less than 50% probability were removed.
The pipeline for 2023 was assessed based on historic conversion
rates. The existing support service contracts, where revenue is
recognised over time were assessed based on historic renewal rates,
to establish the likely renewal of this recurring revenue.
Management reviewed the resource levels and marketing spend
required to support the reduced revenue and reflected cost
reductions in the forecast. The Board has concluded from its
thorough assessment of the detailed forecasts, that the Group will
have sufficient resources to meet its liabilities during the review
period through to 31 December 2023, that it will meet the bank
covenants and that it is appropriate that the Group and the Company
prepare accounts on a going concern basis.
BOARD CHANGES
As previously announced on 4 May 2021, we were pleased to
appoint Chris Errington to the Board as Non-Executive Director.
TRADING OUTLOOK
The current financial year has started in line with
expectations. Pebble has demonstrated its resilience throughout the
global pandemic and more recently in its response to the ongoing
supply chain stresses and the Ukrainian conflict. We are confident
in our strategy and encouraged by the increasing level of recurring
revenue and the continued strengthening of the balance sheet.
Fundamentally, the business is in good shape and we remain
focussed on ensuring we provide our customers with the technology
and high level of service that they expect from Pebble. We will
continue to invest in enhancing our solutions and we look forward
to the future with optimism.
John Varney
Non-Executive Chairman
For the year ended 31 December 2021
CONSOLIDATED GROUP INCOME STATEMENT
for the year ended 31 December 2021
2021 2020
Notes GBP000 GBP000
Revenue 4 10,620 8,393
Cost of sales (2,490) (1,964)
-------- --------
Gross profit 8,130 6,429
Sales and marketing expenses (1,777) (1,687)
Research and development expenses (1,417) (1,263)
Administrative expenses (2,782) (1,870)
Foreign exchange (losses)/gains (40) 15
Other expenses (244) (156)
Operating profit 5 1,870 1,468
----------------------------------------------- ------ -------- --------
Operating profit/ is analysed as:
Adjusted EBITDA 3,282 2,670
Non-recurring items 5 (244) -
Share based payment expense (53) (12)
Exchange (losses)/gains (charged)/credited
to the income statement (40) 15
----------------------------------------------- ------ -------- --------
Earnings before interest, tax, depreciation
and amortisation (EBITDA) 2,945 2,673
----------------------------------------------- ------ -------- --------
Depreciation (160) (234)
Amortisation and impairment of acquired
intangibles - (156)
Amortisation of capitalised development
costs (915) (815)
--------
Finance costs 6 (373) (374)
Finance income 6 - 1
Profit before tax 1,497 1,095
Tax 7 (31) 199
-------- --------
Net result for the year 1,466 1,294
Earnings per share from continuing operations
attributable to the owners of the parent
during the year
Basic earnings per share 8 1.2p 1.0p
Diluted earnings per share 8 1.2p 1.0p
----------------------------------------------- ------ -------- --------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2021
2021 2020
GBP000 GBP000
--------------------------------------------- ------- -------
Profit for the financial year 1,466 1,294
Other comprehensive income - items that
may be reclassified subsequently to profit
or loss:
Exchange differences on translation of
overseas operations
- continuing operations (1) 26
Total profit for the year attributable
to owners of the parent 1,465 1,320
---------------------------------------------- ------- -------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
for the year ended 31 December 2021
Capital
Ordinary Share redemption Merger Translation Accumulated
shares premium reserve reserve reserve losses Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------------------ -------- -------- ------------ --------- ------------ ----------- --------
At 1 January 2020 3,115 6,800 617 29,778 (176) (44,976) (4,842)
------------------------------------ -------- -------- ------------ --------- ------------ ----------- --------
Share based payments: value
of employee services - - - - - 12 12
Unclaimed dividends - - - - - 44 44
------------------------------------ -------- -------- ------------ --------- ------------ ----------- --------
Transactions with owners - - - - - 56 56
------------------------------------ -------- -------- ------------ --------- ------------ ----------- --------
Retained profit for the year - - - - - 1,294 1,294
Exchange differences on translation
of overseas operations - - - - 26 - 26
------------------------------------ -------- -------- ------------ --------- ------------ ----------- --------
Total comprehensive income
for the period - - - - 26 1,294 1,320
------------------------------------ -------- -------- ------------ --------- ------------ ----------- --------
At 31 December 2020 3,115 6,800 617 29,778 (150) (43,626) (3,466)
------------------------------------ -------- -------- ------------ --------- ------------ ----------- --------
At 1 January 2021 3,115 6,800 617 29,778 (150) (43,626) (3,466)
------------------------------------ -------- -------- ------------ --------- ------------ ----------- --------
Share based payments: value
of employee services - - - - - 53 53
Transactions with owners - - - - - 53 53
------------------------------------ -------- -------- ------------ --------- ------------ ----------- --------
Retained profit for the year - - - - - 1,466 1,466
Exchange differences on translation
of overseas operations - - - - (1) - (1)
------------------------------------ -------- -------- ------------ --------- ------------ ----------- --------
Total comprehensive income
for the period - - - - (1) 1,466 1,465
------------------------------------ -------- -------- ------------ --------- ------------ ----------- --------
At 31 December 2021 3,115 6,800 617 29,778 (151) (42,107) (1,948)
------------------------------------ -------- -------- ------------ --------- ------------ ----------- --------
CONSOLIDATED GROUP STATEMENT OF FINANCIAL POSITION
as at 31 December 2021
2021 2020
Notes GBP000 GBP000
----------------------------------------------- ------ --------- ---------
Assets
Non-current assets
Intangible assets 5,601 5,001
Property, plant and equipment 349 1,208
5,950 6,209
--------- ---------
Current assets
Inventories 430 148
Trade and other receivables 3,632 3,125
Cash and cash equivalents 1,639 826
--------- ---------
5,701 4,099
Liabilities
Current liabilities
Financial liabilities - borrowings 1,200 1,800
Trade and other payables 5,832 4,059
Lease liabilities - current 173 145
--------- ---------
7,205 6,004
--------- ---------
Net current liabilities (1,504) (1,905)
--------- ---------
Non-current liabilities
Financial liabilities - borrowings 6,350 6,750
Lease liabilities - non-current 44 1,020
6,394 7,770
--------- ---------
Net liabilities (1,948) (3,466)
----------------------------------------------- ------ --------- ---------
Equity attributable to owners of the parent
Ordinary shares 10 3,115 3,115
Share premium account 10 6,800 6,800
Capital redemption reserve 10 617 617
Merger reserve 29,778 29,778
Translation reserve (151) (150)
Retained earnings (42,107) (43,626)
--------- ---------
Total deficit (1,948) (3,466)
----------------------------------------------- ------ --------- ---------
CONSOLIDATED GROUP STATEMENT OF CASH FLOWS
for the year ended 31 December 2021
2021 2020
Notes GBP000 GBP000
------------------------------------------------ ------ -------- --------
Cash flows from operating activities
Cash generated from operations 9 3,815 2,484
Interest paid (373) (374)
Taxation paid (31) (46)
-------- --------
Net cash from operating activities 3,411 2,064
-------- --------
Cash flows from investing activities
Interest received - 1
Purchase of property, plant and equipment (82) (107)
Expenditure on capitalised development
costs (1,515) (1,301)
Net cash used in investing activities (1,597) (1,407)
-------- --------
Cash flows from financing activities
Cash used in repayment of financing activities 11 (1,000) (1,000)
Net cash used in financing activities (1,000) (1,000)
-------- --------
Net increase/(decrease) in cash and cash
equivalents 814 (343)
Effect of foreign exchange rate changes 11 (1) 25
-------- --------
Cash and cash equivalents at 1 January 826 1,144
Cash and cash equivalents at 31 December 1,639 826
-------- --------
Net debt comprises:
Cash and cash equivalents 1,639 826
Borrowings (7,550) (8,550)
-------- --------
Net debt at 31 December 11 (5,911) (7,724)
------------------------------------------------ ------ -------- --------
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
for the year ended 31 December 2021
1. GENERAL INFORMATION
The Pebble Beach Systems Group is a leading global software
business specialising in solutions for playout automation, and
content serving customers in the broadcast markets.
The Company is a public limited company and is quoted on the
Alternative Investment Market (AIM) of the London stock exchange.
The Company is incorporated and domiciled in the UK. The address of
its registered office is 12 Horizon Business Village, 1 Brooklands
Road, Weybridge, Surrey, KT13 0TJ.
The registered number of the Company is 04082188.
This results announcement was approved for issue at close of
business on 4 May 2022.
2. BASIS OF PREPARATION
The financial information contained in these condensed financial
statements does not constitute the Group's statutory accounts
within the meaning of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2021 and 31
December 2020 have been reported on by Grant Thornton UK LLP, with
an unqualified audit opinion.
Whilst the financial information included in this Annual
Financial Results announcement has been computed in accordance with
International Financial Reporting Standards (IFRS) this
announcement, due to its condensed nature, does not itself contain
sufficient information to comply with IFRS.
Statutory accounts for the year ended 31 December 2020 have been
delivered to the Registrar of Companies. The statutory accounts for
the year ended 31 December 2021, prepared under IFRS, will be
available on the Group's website: https://www.pebbleplc.com and
will be delivered to the Registrar in due course. The Group's
principal accounting policies as set out in the 2020 statutory
accounts have been applied consistently in all material
respects.
3. GOING CONCERN
The directors are required to assess the Company's and the
Group's ability to continue to trade as a going concern.
At 31 December 2021, the Group's net debt was GBP5.9 million
(2020: GBP7.7 million), comprising cash of GBP1.6 million (2020:
GBP0.8 million) and the drawn down RCF from Santander of GBP7.5
million (2020: GBP8.5 million).
We enjoy a close relationship with our bank and have regular
review meetings with them. On 10 March 2021, we signed a 12-month
extension to the RCF and have made all the required repayments of
capital and interest due and met the financial covenants. On 13
April 2022, we signed a new term loan through to 30 September 2024,
which re-financed the existing GBP7.15m RCF at the same level of
commitment, with repayment levels consistent with previous years
and appropriate financial covenants.
To assess the appropriateness of preparing financial statements
on a going concern basis, management prepared detailed projections
of the consolidated income statements, balance sheets and cash flow
statements through to 31 December 2023. This review period extends
to the end of the financial year for 2023, which is looking forward
for four six-month periods beyond that covered by the current
annual report. The projections included testing against the minimum
liquidity and cash flow cover covenants required by the new term
loan facility.
These projections used the budget for 2022 and updated for
current trading and forecasts. This analysis was then extended to
the end of 2023. The projections were stress tested and pipeline
project orders for 2022, at less than 50% probability were removed.
The pipeline for 2023 was assessed based on historic conversion
rates. The existing support service contracts, where revenue is
recognised over time were assessed based on historic renewal rates,
to establish the likely renewal of this recurring revenue.
Management reviewed the resource levels and marketing spend
required to support the reduced revenue and reflected cost
reductions in the forecast. The Board has concluded from its
thorough assessment of the detailed forecasts, that the Group will
have sufficient resources to meet its liabilities during the review
period through to 31 December 2023, that it will meet the bank
covenants and that it is appropriate that the Group and the Company
prepare accounts on a going concern basis.
4. SEGMENTAL REPORTING
The Group's internal organisational and management structure and
its system of internal financial reporting to the Board of
Directors comprise of Pebble Beach Systems Limited and PLC costs.
The chief operating decision-maker has been identified as the
Board.
The Board reviews the Group's internal financial reporting in
order to assess performance and allocate resources. Management have
therefore determined that the operating segments for the Group will
be based on these reports.
The Pebble Beach Systems Limited business is responsible for the
sales and marketing of all Group software products and
services.
The table below shows the analysis of Group external revenue and
operating profit from continuing operations by business
segment.
Pebble PLC Total
Beach Systems costs GBP000
----------------------------------------------- --------------- -------- --------
Year to 31 December 2021
Broadcast 10.620 - 10,620
Total revenue 10,620 - 10,620
--------------- -------- --------
Adjusted EBITDA 3,862 (580) 3,282
Depreciation (160) - (160)
Non-recurring items (244) - (244)
Amortisation of capitalised development
costs (915) - (915)
Share based payment expense - (53) (53)
Exchange losses (40) - (40)
Finance costs (81) (292) (373)
Intercompany finance income/(costs) 107 (107) -
--------------- -------- --------
Profit/(loss) before taxation 2,529 (1,032) 1,497
Taxation (298) 267 (31)
--------------- -------- --------
Profit/(loss) for the year being attributable
to owners of the parent 2,231 (765) 1,466
Year to 31 December 2020
Broadcast 8,393 - 8,393
Total revenue 8,393 - 8,393
--------------- -------- --------
Adjusted EBITDA 3,234 (564) 2,670
Depreciation (234) - (234)
Amortisation of acquired intangibles (156) - (156)
Amortisation of capitalised development
costs (815) - (815)
Share based payment expense - (12) (12)
Exchange (losses)/gains (3) 18 15
Finance costs (40) (334) (374)
Finance income 1 - 1
Intercompany finance income/(costs) 217 (217) -
--------------- -------- --------
Profit/(loss) before taxation 2,204 (1,109) 1,095
Taxation (152) 351 199
--------------- -------- --------
Profit/(loss) for the year being attributable
to owners of the parent 2,052 (758) 1,294
Geographic external revenue analysis
The revenue analysis in the table below is based on the
geographical location of the customer for continuing operations of
the business.
2021 2020
Total Total
GBP000 GBP000
---------------- --------- ---------
By market
UK & Europe 6,385 4,855
North America 927 842
Latin America 567 333
Middle East
and Africa 1,940 2,114
Asia / Pacific 801 249
10,620 8,393
---------------- --------- ---------
Net assets
The table below summarises the net assets of the Group by
division. Balance sheet reporting is disclosed by the divisional
assets and liabilities of the Group as this is consistent with the
presentation of internal information provided to the Executive
Management Board and the Board of Directors.
concern
2021 2020
GBP000 GBP000
---------------------- -------- --------
By division:
Pebble Beach Systems 5,860 5,018
PLC costs (7,808) (8,484)
(1,948) (3,466)
---------------------- -------- --------
5. OPERATING PROFIT
The following items have been included in arriving at the
operating profit for the continuing business:
2021 2020
GBP000 GBP000
------------------------------------------------------ ------- -------
Charge of inventory 1,288 644
Director and employee costs 5,888 4,782
Depreciation of property, plant and equipment 160 234
Amortisation of acquired intangibles - 156
Non-recurring items 244 -
Exchange loss/(gain) charged/(credited) to the income
statement 40 (15)
Research and development expenditure expensed in
the year which includes: 1,417 1,263
Other expenses
Other expenses comprise:
2021 2020
GBP000 GBP000
-------------------------------------- -------- --------
Amortisation of acquired intangibles - 156
Non-recurring items 244 -
-------------------------------------- -------- --------
244 156
-------------------------------------- -------- --------
Non-recurring items
The following items are excluded from management's assessment of
profit because by their nature they could distort the annual trend
in the Group's earnings. These are excluded to reflect performance
in a consistent manner and are in line with how the business is
managed and measured on a day-to-day basis:
2021 2020
GBP000 GBP000
---------------------------------------------------- -------- --------
Provision for costs of transition to remote working 244 -
---------------------------------------------------- -------- --------
6. FINANCE COSTS - NET
2021 2020
GBP000 GBP000
------------------------------------------- --------- ---------
Interest expense for bank borrowing 292 334
Interest expense for leasing arrangements 40 40
Other interest costs 41 -
Finance costs 373 374
Finance income - (1)
Finance costs - net 373 373
------------------------------------------- --------- ---------
Finance income is derived from cash held on deposit.
7. INCOME TAX EXPENSE
2021 2020
GBP000 GBP000
--------------------------------------- -------- --------
Current tax
UK corporation tax - -
Foreign tax - current year 31 35
Adjustments in respect of prior years - 11
--------------------------------------- -------- --------
Total current tax 31 46
--------------------------------------- -------- --------
Deferred tax
UK corporation tax - (276)
Effect of changes in UK tax rate - 26
Adjustments in respect of prior years - 5
--------------------------------------- -------- --------
Total deferred tax - (245)
--------------------------------------- -------- --------
Total taxation 31 (199)
--------------------------------------- -------- --------
In the Spring Budget 2021, the Government announced that from 1
April 2023 the corporation tax rate would increase from 19 per cent
to 25 per cent. Deferred taxes at the balance sheet date have been
measured using these enacted tax rates and reflected in these
financial statements.
8. EARNINGS PER ORDINARY SHARE (EPS)
Basic earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the year.
For diluted earnings per share the weighted average number of
ordinary shares in issue is adjusted to assume conversion of all
dilutive potential ordinary shares. The dilutive shares are those
share options granted to employees where the exercise price is less
than the average market price of the Company's ordinary shares
during the year. The average market value of the Company's shares
for the purpose of calculating the dilutive effect of share options
was based on quoted market prices for the year during which the
options were outstanding.
2021 2020
Weighted Weighted
average average
number number
of shares of shares
000s 000s
----------------------------------------------------- ---------- ----------
Weighted-average number of ordinary shares (basic) 124,477 124,477
Effect of LTIPs outstanding 100 100
Effect of share options outstanding 1,198 2,285
----------------------------------------------------- ---------- ----------
Weighted-average number of ordinary shares (diluted)
at 31 December 125,775 126,862
----------------------------------------------------- ---------- ----------
Reconciliations of the earnings and weighted average number of
shares used in the calculations are set out below.
2021 2020
Weighted Weighted
average average Earnings
number Earnings number per
Earnings of shares per share Earnings of shares share
GBP000 000s pence GBP000 000s pence
--------------------------- --------- ----------- ----------- --------- ----------- ----------
Basic earnings per share
Profit attributable
to continuing operations 1,466 1.2p 1,294 1.0p
Basic earnings per share 1,466 124,477 1.2p 1,294 124,477 1.0p
--------------------------- --------- ----------- ----------- --------- ----------- ----------
Diluted earnings per
share
Profit attributable
to continuing operations 1,466 1.2p 1,294 1.0p
Diluted earnings per
share 1,466 125,775 1.2p 1,294 126,862 1.0p
--------------------------- --------- ----------- ----------- --------- ----------- ----------
Potential ordinary shares were non-dilutive in prior years
because they would decrease the loss per share from continuing
operations.
Adjusted earnings
The directors believe that adjusted EBITDA, adjusted earnings
and adjusted earnings per share provide additional useful
information on annual trends to shareholders. These measures are
used by management for internal performance analysis and incentive
compensation arrangements. The term "adjusted" is not a defined
term used under IFRS and may not therefore be comparable with
similarly titled profit measurements reported by other companies.
The principal adjustments to earnings are made in respect of the
amortisation of acquired intangibles, share based payment expense
and exchange gains or losses charged to the income statement and
their related tax effects.
The reconciliation between reported and adjusted earnings and
basic earnings per share is shown below:
2021 2020
-------------------------------------- ----------------- ------ ---------
Earnings Earnings
GBP000 GBP000
Pence Pence
Reported earnings and EPS 1,466 1.2p 1,294 1.0p
Amortisation of acquired intangibles
after tax - 0.0p 126 0.1p
Share based payment expense 53 0.0p 12 0.0p
Exchange (gains)/losses 32 0.0p (12) 0.0p
--------- ------ ------------- ------
Adjusted earnings and EPS 1,551 1.2p 1,420 1.1p
-------------------------------------- --------- ------ ------------- ------
9. CASH FLOW GENERATED FROM OPERATING ACTIVITIES
Reconciliation of profit before taxation to net cash flows from
operations.
2021 2020
GBP000 GBP000
----------------------------------------------------- -------- --------
Profit before tax - continuing operations 1,497 1,095
Depreciation of property, plant and equipment 160 234
Amortisation and impairment of development costs 915 815
Amortisation and impairment of acquired intangibles - 156
Non-recurring item 244 -
Share-based payment expense 53 12
Finance income - (1)
Finance costs 373 374
Increase in inventories (282) (8)
(Increase)/decrease in trade and other receivables (507) 343
Increase/(decrease) in trade and other payables 1,362 (536)
Cash generated from operations 3,815 2,484
----------------------------------------------------- -------- --------
10. CALLED UP SHARE CAPITAL, SHARE PREMIUM AND CAPITAL
REDEMPTION RESERVE
Number of Share Share Premium Capital Total
shares Capital redemption
GBP000 reserve
000 GBP000 GBP000 GBP000
--------------------- ---------- --------- -------------- ------------ --------
At 1 January 2021 124,603 3,115 6,800 617 10,532
Share issues - - - - -
At 31 December 2021 124,603 3,115 6,800 617 10,532
--------------------- ---------- --------- -------------- ------------ --------
11. NET DEBT
Reconciliation of decrease in cash and cash equivalents to
movement in net cash:
Net cash and Other Total
cash equivalents borrowings net cash
GBP000 GBP000 GBP000
------------------------------------------ ------------------ ------------ ----------
At 1 January 2021 826 (8,550) (7,724)
Cash flow for the year before financing 1,814 - 1,814
Movement in borrowings in the year (1,000) 1,000 -
Exchange rate adjustments (1) - (1)
Cash and cash equivalents at 31 December
2021 1,639 (7,550) (5,911)
------------------------------------------ ------------------ ------------ ----------
12. POST BALANCE SHEET EVENT
New TERM LOAN
We maintain a good relationship and regular communication with
our bank, Santander, who remain very supportive of our strategy to
invest in developing our new technology solutions. On 13 April
2022, a new term loan facility was signed, refinancing the existing
GBP7.15 million revolving credit facility agreement. The new term
loan secures a GBP7.15 million facility until 30 September 2024,
with revised financial covenants and a repayment schedule
consistent with previous years.
The Board is pleased to confirm that following the publication
of its audited results for the year ended 31 December 2021, the
annual report and financial statements will be posted to
shareholders by 23 May 2022 and a copy will also be available to
download from the Group's website at pebbleplc.com.
Ends
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR SSEESLEESEEI
(END) Dow Jones Newswires
May 05, 2022 02:01 ET (06:01 GMT)
Pebble Beach Systems (LSE:PEB)
Graphique Historique de l'Action
De Déc 2024 à Jan 2025
Pebble Beach Systems (LSE:PEB)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025
