TIDMPEB
RNS Number : 1226K
Pebble Beach Systems Group PLC
23 August 2023
Pebble Beach Systems Group plc
Results for the half-year ended 30 June 2023
Pebble Beach Systems Group plc (AIM: "PEB", "Pebble" or the
"Group"), a leading global software business specialising in
playout automation, content management and IP Control solutions for
the broadcast and streaming service markets, is pleased to announce
its unaudited half-year results for the six months ended 30 June
2023 ("H1 23").
Financial highlights
-- Revenue up 9% to GBP5.5m (H1 22: GBP5m) with recurring
revenue up 13% to GBP2.53m (H1 22: GBP2.24m)
-- Order intake in the period of GBP4.4m (H1 22: GBP5m) as
economic nervousness caused some clients to defer non-essential
spend
-- Adjusted EBITDA(1) of GBP1.4m is marginally up against the
last year comparable period (H1 22: GBP1.3m), representing 25% of
revenue (H1 22: 26%)
-- Profit before tax of GBP0.2m (H1 22: GBP0.3m)
-- Adjusted earnings per share down to 0.2p (H1 22: 0.4p)
-- Net cash generated from operating activities (after interest
paid and IFRS 16 lease payments) was GBP1.7m (H1 22: GBP0.6m)
-- Gross bank debt reduced by GBP0.5m in last six months to
GBP6.1m as at 30 June 2023. Net debt at 30 June 2023 was GBP5.1m
representing a net debt/last 12 month Adjusted EBITDA(1) of
c.1.6x
Operational highlights
-- Hardware delivery lead times are coming back down to
pre-COVID levels. This is reducing the need for buffer stock and
our new Chief Operating Officer is working to reduce the buffer
levels.
-- Investment in our new IP-native Oceans platform continues as planned.
-- Neil Maycock appointed as new Chief Commercial Officer. Neil
brings a wealth of industry experience and knowledge from his time
at Grass Valley. Neil will work closely with our product and sales
teams to strengthen our commercial offering.
-- Significant success in the Middle East with 2 new deals with
existing customers with an order value of GBP0.65m. These deals are
validation of the excellent support and superior technology we
offer.
-- GBP0.36m order placed by a Spanish state broadcaster, with
Pebble beating strong competition to win this order.
-- A key new win in Brazil, where our excellent local resellers
sold a new system to a state broadcaster with an order value of
GBP0.13m.
Current trading and outlook
-- The Company's existing weighted pipeline value remains strong
at GBP8.7m (June 22: GBP7.4m) and we are receiving many enquiries
following a competitor's announcement to end of life their playout
automation solutions, so we expect this pipeline value to grow.
-- Strength of pipeline and level of customer engagement
provides management with confidence in delivering full year growth
despite the reduced order intake in the first half, highlighting
the resilience of the Company and its ability to deliver project
backlog.
John Varney, Non-Executive Chairman of Pebble Beach Systems
Group plc, said:
"The Company has delivered a robust performance for the first
half of 2023, despite a delay in new order intake.
Our continued long-term aim of investing in new software
solutions whilst reducing our overall indebtedness remains central
to our strategy to ensure we continue to be well positioned to
benefit from the industry transition to IP as full-scale adoption
occurs.
The Board continues to have confidence that the Group can
deliver a strong second half with improved revenue and achieve the
Board's expectations for the year.
Notes
(1) Adjusted EBITDA (earnings before interest, tax, depreciation
and amortisation) a non-GAAP measure, is EBITDA before
non-recurring items and foreign exchange gains/losses.
For further information please contact:
+44 (0) 75 55 59
Peter Mayhead - CEO 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 www.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 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
We have performed well in what has been a challenging start to
the year, with a 9% increase in revenue on the comparable period
last year. This is despite new order intake slipping as a result of
economic nervousness and customers delaying decisions on
non-revenue generating upgrades. Despite this slippage, we are
expecting an uptick in H2 23 and a stronger second half, consistent
with what has happened in the last two years. Our existing pipeline
value remains high, and we can see new opportunities arising from a
leading competitor's decision to end of life their playout
solutions.
It was hoped that a strong H1 would allow further investment
into our sales department to facilitate market growth, however this
has now been postponed to mitigate the slippage in orders we have
been experiencing.
The Board is pleased that through careful cashflow management,
the Company has been able to continue to improve its balance sheet.
At 30 June 2023, net debt accounts for only 1.6x the annual EBITDA
of GBP3.3m for the 12 months to 30 June 2023, bringing the
business's net debt position to a more acceptable level.
Financial performance
Good revenue performance in H1 is showing a 9% increase on the
comparable period last year to GBP5.5m (H1 22: GBP5.0m). I am
pleased to announce recurring revenue is also up 13% to GBP2.53m
(H1 22: GBP2.24m) and now accounts for 46% of our revenue base (H1
22: 44%). This is encouraging for the future years' revenue.
Adjusted EBITDA(1) increased to GBP1.4m (H1 22: GBP1.3m),
representing 25% of revenue (H1 22: 26%), following planned
investment in headcount including the appointment of a new Chief
Commercial Officer in May. As a result of this investment in
headcount adjusted EBITDA margin is lower at 25% (H1 22: 26%), but
this is expected to recover in line with full year expectations
thanks to an increase in revenue in H2.
Cash conversion in H1 23 has remained strong with 145% of
adjusted EBITDA being converted to operating cash (H1 22: 62%). Net
cash from operating activities (after interest paid and IFRS 16
lease payments) rose to GBP1.6m (H1 22: GBP0.6m); this has allowed
the Group to continue investing in R&D and paying down the
long-term debt.
The Group's net debt position of GBP5.1m represents an 18% drop
from the comparable period last year (H1 22: GBP6.3m). This
reflects a stronger cash position from the comparable period last
year and the Group continuing to pay off the long-term debt at the
same rate as last year.
Investment in R&D of GBP0.9m in the period remains flat year
on year following headcount investment in 2022 as part of the
Group's strategic plan of product developments (H1 22:
GBP0.9m).
An increase in financing costs as a result of rising interest
rates resulted in net profit of GBP0.24m (H1 22: GBP0.26m) being
slightly down for the year. The current interest rate on loan
repayments is 8.22% (H1 22: 5.37%). This has resulted in an
adjusted EPS of 0.2p (H1 22: 0.4p).
Operational performance
A slight reduction in orders to GBP4.4m (H1 22: GBP5m), is a
result of delays in placing orders due to economic nervousness seen
across the industry. I am pleased the weighted pipeline value
remains strong at GBP8.7m (H1 22: GBP7.4m), which gives the Board
confidence the Business will have a stronger H2.
There have been some significant wins and the Board is pleased
that Pebble was able to fortify its relationship with two key
customers in the Middle East with new orders worth GBP0.65m.
Three significant orders in Europe totalling GBP0.7m were won in
H1. Two orders were for system and hardware refreshes, and one was
a new automation system.
Ongoing software development
-- Oceans Automation. Work continues on a cloud-native playout
solution to complement our current enterprise level automation
offering.
-- Media Processing Engine. Work is progressing on the software
solution for video playout capability with preliminary integration
with Oceans Automation achieved. The next milestones will include
APIs, graphics management and subtitling.
-- Pebble Control. Development of the IP control tool is
advancing with added control functionality with the release of the
first device control version expected by the end of the year. We
are co-chairing the work on the new open standards protocol and are
simultaneously working on the implementation of it.
Inventory build
-- We have seen inventory lead times drop to pre-COVID levels,
reducing the risk of delays to order fulfilment. As a result the
operations department is working to reduce our inventory levels and
will continue to prioritise using existing stock.
Cash flows and net debt
The Group held cash and cash equivalents of GBP0.9 million at 30
June 2023 (H1 2022: GBP0.8 million). The table below summarises the
cash flows for the half year.
2023 2022
GBP'million GBP'million
------------------------------------------ ------------ ------------
Cash generated from operating activities 1.6 0.6
Net cash used in investing activities (0.9) (0.9)
Net cash used in financing activities (0.5) (0.5)
Net (decrease)/increase in cash and
cash equivalents 0.2 (0.8)
Cash and cash equivalents at 1 January 0.7 1.6
------------------------------------------ ------------ ------------
Cash and cash equivalents at 30 June 0.9 0.8
------------------------------------------ ------------ ------------
As at 30 June 2023 net debt(2) , excluding the impact of IFRS16,
was GBP5.1 million (cash GBP0.9 million and bank debt of GBP6.0
million). The Group was using all GBP6.0 million of its available
facilities at 30 June 2023, having re-paid GBP0.5 million in the
period.
Going concern
The Directors, having made suitable enquiries and analysis of
the accounts, consider that the Group has adequate resources to
continue in business for the foreseeable future. In making this
assessment, which covers a minimum period of twelve months from
approval of this half-year report, the Directors have considered
the Group's trading forecast, cash flow forecasts, available
headroom and projected financial covenants on the banking facility,
the levels of opportunities in the pipeline and recurring support
revenue (see note 3 below).
Principal risks and uncertainties
The principal risks and uncertainties facing the Group remain
consistent with the principal risks and uncertainties reported in
the Group's 31 December 2022 Annual Report.
We view supply chain disruption as less of a risk following a
decrease in product lead times. This has given the business
confidence to lower buffer stock levels back to pre-COVID levels
and the Operations department will work to deliver that.
Current trading and outlook
The appointment of a new Chief Commercial Officer, with
considerable market experience will help focus our commercial
offering and support the sales department in landing new orders.
Despite orders slipping in H1, they have not disappeared from the
pipeline, which remains encouraging.
We can see a number of new opportunities coming in following our
competitor's announcement to end of life their existing automation
offerings and the Group is confident that this and other ongoing
sales initiatives will lift order levels in the second half.
The strength of the pipeline and the engagement with customers
gives the Board confidence that the Group can again deliver a
strong second half of the year and deliver against the Board's
expectations for the current year.
John Varney
Non-Executive Chairman
CONSOLIDATED INCOME STATEMENT
for the half year ended 30 June 2023
6 months 6 months Year ended
to 30 June to 30 June 31 December
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
Notes GBP'000 GBP'000 GBP'000
Revenue 4 5,468 5,038 11,167
Cost of sales (1,417) (1,236) (2,821)
------------ ------------ -------------
Gross profit 4,051 3,802 8,346
Sales and marketing expenses (1,289) (959) (2,234)
Research and development expenses (884) (838) (1,696)
Administrative expenses (1,304) (1,334) (2,789)
Foreign exchange gains/(losses) (35) 47 145
Other expenses - (257) (362)
------------ ------------ -------------
Operating profit 5 539 461 1,41
--------------------------------------------- ------ ------------ ------------ -------------
Operating profit is analysed as:
Adjusted EBITDA 1,358 1,297 3,166
Non-recurring items - (257) (362)
Share based payment expense (28) (20) (53)
Exchange gains/(losses) credited/(charged)
to the income statement (35 ) 47 145
Earnings before interest, tax, depreciation
and amortisation (EBITDA) 1,295 1,067 2,896
Depreciation (122) (78) (168)
Amortisation and impairment of acquired - - -
intangibles
Amortisation of capitalised development
costs (634) (528) (1,101)
--------------------------------------------- ------ ------------ ------------ -------------
Finance costs (291) (183) (432)
Finance income - - -
------------ ------------ -------------
Profit before tax 248 278 1,195
Tax 6 (6) (17) (13)
Profit for the period being attributable
to owners of the parent 242 261 1,182
Earnings per share
attributable to the owners of
the parent during the period
Basic earnings per share 7 0.2p 0.2p 0.9p
Diluted earnings per share
Diluted earnings per share 7 0.2p 0.2p 0.9p
--------------------------------------------- ------ ------------ ------------ -------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the half year ended 30 June 2023
6 months 6 months Year ended
to 30 June to 30 31 December
2023 June 2022 2022
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
----------------------------------- ------------ ------------ -------------
Profit for the financial
year 242 261 1,182
Other comprehensive income
- items that may be reclassified
subsequently to profit
or loss:
Exchange differences on
translation of overseas
operations 3 - (34)
Total profit for the period
attributable to owners
of the parent 245 261 1,148
------------------------------------ ------------ ------------ -------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
for the half year ended 30 June 2023
Capital
Ordinary Share redemption Merger Translation Accumulated
shares premium reserve reserve reserve losses Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
At 1 January 2023 3,115 6,800 617 29,778 (185) (40,872) (747)
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
Share based payments:
value of employee
services - - - - - 28 28
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
Transactions with
owners - - - - - 28 28
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
Retained profit for
the period - - - - - 242 242
Exchange differences - - - - - - -
on translation of
overseas operations
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
Total comprehensive
income/expense for
the period - - - - 3 242 245
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
At 30 June 2023
(Unaudited) 3,115 6,800 617 29,778 (182) (40,602) (474)
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
At 1 January 2022 3,115 6,800 617 29,778 (151) (42,107) (1,948)
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
Share based payments:
value of employee
services - - - - - 20 20
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
Transactions with
owners - - - - - 20 20
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
Retained profit for
the period - - - - - 261 261
Exchange differences - - - - - - -
on translation of
overseas operations
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
Total comprehensive
income/expense for
the period - - - - - 261 261
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
At 30 June 2022
(Unaudited) 3,115 6,800 617 29,778 (151) (41,826) (1,667)
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
At 1 January 2022 3,115 6,800 617 29,778 (151) (42,107) (1,948)
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
Share based payments:
value of employee
services - - - - - 53 53
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
Transactions with
owners - - - - - 53 53
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
Retained profit for
the year - - - - - 1,182 1,182
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
Exchange differences
on translation of
overseas operations - - - - (34) - (34)
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
Total comprehensive
income/expense for
the period - - - - (34) 1,182 1,148
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
At 31 December 2022
(Audited) 3,115 6,800 617 29,778 (185) (40,872) (747)
------------------------ ----------- ---------- ------------ ---------- -------------- -------------- ---------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2023
30 June 30 June 31 December
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
Notes GBP'000 GBP'000 GBP'000
------------------------------------ ------ ------------ ------------ ------------
Assets
Non-current assets
Intangible assets 8 6,615 5,993 6,307
Property, plant and equipment 496 346 571
Other non-current assets 12 38
------------ ------------ ------------
7,123 6,339 6,916
------------ ------------ ------------
Current assets
Inventories 491 510 497
Trade and other receivables 3,330 3,805 3,526
Current tax assets 8
Cash and cash equivalents 951 799 728
------------ ------------ ------------
4,772 5,114 4,759
------------ ------------ ------------
Liabilities
Current liabilities
Financial liabilities - borrowings 1,000 1,000 935
Trade and other payables 6,039 5,904 5,716
Lease liabilities - current 63 104 96
------------ ------------ ------------
7,102 7,008 6,747
------------ ------------ ------------
Net current liabilities (2,330) (1,894) (1,988)
------------ ------------ ------------
Non-current liabilities
Financial liabilities - borrowings 5,050 6,050 5,550
Lease liabilities - non-current 217 62 125
Deferred tax liabilities - - -
------------ ------------ ------------
5,267 6,112 5,675
------------ ------------ ------------
Net liabilities (474) (1,667) (747)
------------------------------------ ------ ------------ ------------ ------------
Equity attributable to owners
of the parent
Ordinary shares 3,115 3,115 3,115
Share premium account 6,800 6,800 6,800
Capital redemption reserve 617 617 617
Merger reserve 29,778 29,778 29,778
Translation reserve (182) (151) (185)
Retained earnings (40,602) (41,826) (40,872)
------------ ------------ ------------
Total equity (474) (1,667) (747)
------------------------------------ ------ ------------ ------------ ------------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the half year ended 30 June 2023
6 months 6 months Year ended
to 30 June to 30 June 31 December
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
Notes GBP'000 GBP'000 GBP'000
------------------------------------------- ------ ------------ ------------ -------------
Cash flows from operating activities
Cash generated from operations 9 1,974 802 2,511
Interest paid (291) (183) (432)
Taxation paid 2 (17) (21)
------------ ------------ -------------
Net cash from operating activities 1,685 602 2,058
------------ ------------ -------------
Cash flows from investing activities
Interest received - - -
Purchase of property, plant and equipment (23) (22) (193)
Expenditure on capitalised development
costs (942) (920) (1,807)
Net cash used in investing activities (965) (942) (2,000)
------------ ------------ -------------
Cash flows from financing activities
Net cash used in repayment of financing
activities (500) (500) (1,000)
Net cash used in financing activities (500) (500) (1,000)
------------ ------------ -------------
Net (decrease)/increase in cash and
cash equivalents 220 (840) (942)
Effect of foreign exchange rate changes 3 - 31
------------ ------------ -------------
Cash and cash equivalents and overdrafts
at 1 January 728 1,639 1,639
------------ ------------ -------------
Cash and cash equivalents and overdrafts
at period end 951 799 728
------------ ------------ -------------
Net debt comprises:
Cash and cash equivalents and overdrafts 951 799 728
Borrowings (6,050) (7,050) (6,485)
------------ ------------ -------------
Net debt at period end (5,099) (6,251) (5,757)
------------------------------------------- ------ ------------ ------------ -------------
NOTES TO THE HALF-YEAR REPORT
for the six months ended 30 June 2023
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, with
registered number of 04082188. The address of its registered office
is Unit 1, First Quarter, Blenheim Road, Epsom, Surrey, KT19
9QN.
This half-year results announcement was approved by the Board on
22 August 2023.
2. BASIS OF PREPARATION
The financial information for the period ended 30 June 2023 set
out in this half-year report does not constitute statutory accounts
as defined in Section 434 of the Companies Act 2006. The Group's
statutory financial statements for the year ended 31 December 2022
have been filed with the Registrar of Companies. The auditor's
report on those financial statements was unqualified.
The half-year financial information has been prepared using the
same accounting policies and estimation techniques as will be
adopted in the Group financial statements for the year ending 31
December 2023. The Group financial statements for the year ended 31
December 2022 were prepared under International Financial Reporting
Standards as adopted by the European Union. These interim financial
statements have been prepared on a consistent basis and format. The
Group has not applied IAS 34 'Interim Financial Reporting', which
is not mandatory for AIM companies, in the preparation of these
interim financial statements.
3. GOING CONCERN
The Directors, having made suitable enquiries and analysis of
the accounts, consider that the Group has adequate resources to
continue in business for the foreseeable future. In making this
assessment, which covers a minimum period of twelve months from
approval of this half-year report, the Directors have considered
the Group's trading forecast, cash flow forecasts, available
headroom and projected financial covenants on the banking facility,
the levels of opportunities in the pipeline and recurring support
revenue.
We maintain a good relationship with our bank. The current loan
agreement secures the facility until 30 September 2024 with banking
covenants and a repayment schedule in place.
We have a strong order book and pipeline which underpin our
third and fourth quarter revenue.
The Directors have a reasonable expectation that the Group will
have adequate resources to continue in business for the foreseeable
future and therefore continue to adopt the going concern basis in
preparing the interim financial statements.
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 Group. 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 by business segment.
Pebble Group Total
Beach Systems
GBP'000 GBP'000 GBP'000
----------------------------------------------- --------------- -------- --------
6 months to 30 June 2023 (Unaudited)
--------------- -------- --------
Total revenue 5,468 - 5,468
--------------- -------- --------
Adjusted EBITDA 1,555 (197) 1,358
Depreciation (122) - (122)
Amortisation of capitalised development
costs (634) - (634)
Share based payment expense - (28) (28)
Non-recurring items - - -
Exchange gains (35) - (35)
Finance costs (5) (286) (291)
Intercompany finance income/(costs) 131 (131) -
--------------- -------- --------
Profit/(loss) before taxation 890 (642) 248
Taxation (6) - (6)
--------------- -------- --------
Profit/(loss) for the period being
attributable to owners of the parent 884 (642) 242
----------------------------------------------- --------------- -------- --------
6 months to 30 June 2022 (Unaudited)
--------------- -------- --------
Total revenue 5,038 - 5,038
--------------- -------- --------
Adjusted EBITDA 1,664 (367) 1,297
Depreciation (78) - (78)
Amortisation of capitalised development
costs (528) - (528)
Share based payment expense - (20) (20)
Non-recurring items - (257) (257)
Exchange gains 47 - 47
Finance costs (3) (180) (183)
Finance income 168 (168) -
--------------- -------- --------
Profit/(loss) before taxation 1,270 (992) 278
Taxation (116) 99 (17)
--------------- -------- --------
Profit/(loss) for the period being
attributable to owners of the parent 1,154 (893) 261
----------------------------------------------- --------------- -------- --------
Year to 31 December 2022 (Audited)
--------------- -------- --------
Total revenue 11,167 - 11,167
--------------- -------- --------
Adjusted EBITDA 4,051 (885) 3,166
Depreciation (168) - (168)
Amortisation of capitalised development
costs (1,101) - (1,101)
Share based payment expense - (53) (53)
Non-recurring items 66 (428) (362)
Exchange (losses)/gains 145 - 145
Finance costs (20) (412) (432)
Intercompany finance income/(costs) 211 (211) -
--------------- -------- --------
Profit/(loss) before taxation 3,184 (1,989) 1,195
Taxation (223) 210 (13)
--------------- -------- --------
Profit/(loss) for the year being attributable
to owners of the parent 2,961 (1,779) 1,182
----------------------------------------------- --------------- -------- --------
Geographic external revenue analysis
The revenue analysis in the table below is based on the
geographical location of the customer of the business.
6 months 6 months Year ended
to 30 June to 30 June 31 December
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
Total Total Total
GBP'000 GBP'000 GBP'000
---------------- -------------- ------------ -------------
By market
UK & Europe 3,362 1,992 4,967
North America 497 643 1,461
Latin America 350 342 787
Middle East 1,151 1,991 3,466
Asia / Pacific 108 70 486
5,468 5,038 11,167
---------------- -------------- ------------ -------------
Net liabilities
The table below summarises the net liabilities 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.
6 months 6 months Year ended
to 30 June to 30 31 December
2023 June 2022 2022
Total Total Total
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
---------------------- ------------ ----------- -------------
By division:
Pebble Beach Systems 5,938 5,718 6,232
Group (6,412) (7,385) (6,979)
(474) (1,667) (747)
---------------------- ------------ ----------- -------------
5. OPERATING PROFIT
The following items have been included in arriving at the
operating profit for the business:
6 months 6 months Year ended
to 30 June to 30 31 December
2023 June 2022 2022
Total Total Total
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
----------------------------------------------- ------------ ----------- -------------
Inventory recognised as an expense 610 829 1,457
Director and employee costs 3,244 2,923 6,231
Depreciation of property, plant and equipment 122 78 168
Non-recurring items - 257 362
Exchange (gains)/losses (credited)/charged
to profit and loss 35 (47) (145)
Amortisation of capitalised development
costs 634 528 1,101
----------------------------------------------- ------------ ----------- -------------
6. INCOME TAX EXPENSE
6 months 6 months Year ended
to 30 June to 30 31 December
2023 June 2022 2022
Total Total Total
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
--------------------------------------- ------------ ----------- -------------
Current tax
UK corporation tax - - -
Foreign Tax - current year 6 17 21
Adjustments in respect of prior years (8)
Total current tax 6 17 13
--------------------------------------- ------------ ----------- -------------
Deferred tax
UK corporation tax - - -
Total deferred tax - - -
--------------------------------------- ------------ ----------- -------------
Total taxation 6 17 13
--------------------------------------- ------------ ----------- -------------
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.
7. EARNINGS PER ORDINARY SHARE
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.
Reconciliations of the earnings and weighted average number of
shares used in the calculations are set out below.
6 months to 30 June 2023 (Unaudited)
Weighted
average Earnings
number per share
Earnings of shares pence
GBP'000 '000s
---------------------------------- ------------ ------------- ------------
Basic earnings per share
Profit attributable to ordinary
shareholders 242 0.2p
Basic earnings per share 242 124,477 0.2p
---------------------------------- ------------ ------------- ------------
Diluted earnings per share
Profit attributable to ordinary
shareholders 242 0.2p
---------------------------------- ------------ ------------- ------------
Diluted earnings per share 242 125,114 0.2p
---------------------------------- ------------ ------------- ------------
6 months to 30 June 2022
(Unaudited)
Weighted
average Earnings
number per
Earnings of shares share
GBP'000 '000s pence
--------------------------------- ------------------------- ------------ -----------
Basic earnings per share
Profit attributable to ordinary
shareholders 261 0.2p
Basic earnings per share 261 124,477 0.2p
--------------------------------- ------------------------- ------------ -----------
Diluted earnings per share
Profit attributable to ordinary
shareholders 261 0.2p
Diluted earnings per share 261 126,761 0.2p
--------------------------------- ------------------------- ------------ -----------
Year ended 31 December 2022
(Audited)
Weighted
average Earnings
number per share
Earnings of shares pence
GBP'000 '000s
---------------------------------- ----------- ------------ ------------
Basic earnings per share
Profit attributable to ordinary
shareholders 1,182 0.9p
Basic earnings per share 1,182 124,477 0.9p
---------------------------------- ----------- ------------ ------------
Diluted earnings per share
Profit attributable to ordinary
shareholders 1,182 0.9p
---------------------------------- ----------- ------------ ------------
Diluted earnings per share 1,182 125,709 0.9p
---------------------------------- ----------- ------------ ------------
Adjusted earnings
The directors believe that adjusted EBITDA, adjusted earnings
and adjusted earnings per share provide additional useful
information on underlying 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 are made in respect of the
amortisation of acquired intangibles, share based payment expense,
non-recurring items and exchange gains or losses charged to the
income statement and their related tax effects.
The reconciliation between reported and underlying earnings and
basic earnings per share is shown below:
6 months 6 months Year ended
to 30 June to 30 June 31 December
2023 2022 2022
Total Total Total
(Unaudited) (Unaudited) (Audited)
Earnings Earnings Earnings
GBP'000 Pence GBP'000 Pence GBP'000 Pence
-------------------------------- -------- ------ -------- ------ -------- -------
Reported earnings and earnings
per share 242 0.2p 261 0.2p 1,182 0.9p
Share based payment expense 28 0.0p 20 0.0p 53 0.0p
Exchange (gains)/losses 27 0.0p (38) 0.0p (117) (0.1p)
Non-recurring items - 0.0p 208 0.2p 294 0.3p
-------- ------ -------- ------ -------- -------
Adjusted earnings and earnings
per share 297 0.2p 451 0.4p 1,412 1.1p
-------------------------------- -------- ------ -------- ------ -------- -------
8. INTANGIBLE ASSETS
Acquired Acquired Capitalised
customer intellectual development
Goodwill relationships property costs Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------- -------- --------------- -------------- ------------- ---------
Cost
At 1 January 2022 (audited) 3,218 4,493 3,350 6,938 17,999
Additions (unaudited) - - - 920 920
---------------------------------- -------- --------------- -------------- ------------- ---------
At 30 June 2022 (unaudited) 3,218 4,493 3,350 7,858 18,919
---------------------------------- -------- --------------- -------------- ------------- ---------
At 1 January 2022 (audited) 3,218 4,493 3,350 6,938 17,999
Additions (audited) - - - 1,807 1,807
---------------------------------- -------- --------------- -------------- ------------- ---------
At 1 January 2023 (audited) 3,218 4,493 3,350 8,745 19,806
---------------------------------- -------- --------------- -------------- ------------- ---------
Additions (unaudited) - - - 941 941
---------------------------------- -------- --------------- -------------- ------------- ---------
At 30 June 2023 (unaudited) 3,218 4,493 3,350 9,686 20,747
---------------------------------- -------- --------------- -------------- ------------- ---------
Accumulated amortisation
At 1 January 2022 (audited) - 4,493 3,350 4,555 12,398
Charge for the period (unaudited) - - - 528 528
---------------------------------- -------- --------------- -------------- ------------- ---------
At 30 June 2022 (unaudited) - 4,493 3,350 5,083 12,926
---------------------------------- -------- --------------- -------------- ------------- ---------
At 1 January 2022 (audited) - 4,493 3,350 4,555 12,398
Charge for the year (audited) - - - 1,101 1,101
---------------------------------- -------- --------------- -------------- ------------- ---------
At 1 January 2023 (audited) - 4,493 3,350 5,656 13,499
Charge for the period (unaudited) - - - 633 634
---------------------------------- -------- --------------- -------------- ------------- ---------
At 30 June 2023 (unaudited) - 4,493 3,350 6,289 14,133
---------------------------------- -------- --------------- -------------- ------------- ---------
Net book value
At 30 June 2023 (unaudited) 3,218 - - 3,397 6,615
---------------------------------- -------- --------------- -------------- ------------- ---------
At 31 December 2022 (audited) 3,218 - - 3,089 6,307
---------------------------------- -------- --------------- -------------- ------------- ---------
At 30 June 2022 (unaudited) 3,218 - - 2,775 5,993
---------------------------------- -------- --------------- -------------- ------------- ---------
At 1 January 2022 (audited) 3,218 - - 2,383 5,601
---------------------------------- -------- --------------- -------------- ------------- ---------
The amortisation of development costs is included in research
and development expenses in the Consolidated Group Income
Statement. Within capitalised development costs there are GBP4.0
million (2022: GBP3.6 million) of fully written down assets that
are still in use.
9. CASH FLOW GENERATED FROM OPERATING ACTIVITIES
Reconciliation of profit before taxation to net cash flows from
operating activities.
6 months 6 months Year ended
to 30 June to 30 31 December
2023 June 2022 2022
Total Total Total
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
----------------------------------------------- ------------ ----------- -------------
Profit before tax 248 278 1,195
Depreciation of property, plant and equipment 122 78 168
Amortisation and impairment of development
costs 634 528 1,101
Non-recurring item - - (66)
Share based payment expense 28 20 53
Finance income - - -
Finance costs 291 183 432
Decrease/(increase) in inventories 6 (80) (67)
Decrease/(increase) in trade and other
receivables 263 (173) 3
Increase/(decrease) in trade and other
payables 382 (32) (308)
Net cash generated from operating activities 1,974 802 2,511
----------------------------------------------- ------------ ----------- -------------
10. NET FUNDS
Reconciliation of change in cash and cash equivalents to
movement in net debt:
Net cash and Other borrowings Total
cash equivalents GBP'000 net debt
GBP'000 GBP'000
------------------------------------------- ------------------ ----------------- ----------
At 1 January 2023 728 (6,485) (5,757)
Cash flow for the period before financing 720 - 720
Movement in borrowings in the period (500) 500 -
Exchange rate adjustments 3 - 3
------------------------------------------- ------------------ ----------------- ----------
Cash and cash equivalents at 30 June
2023 (Unaudited) 951 (6,050) (5,099)
------------------------------------------- ------------------ ----------------- ----------
At 1 January 2022 1,639 (7,550) (5,911)
Cash flow for the period before financing (340) - (340)
Movement in borrowings in the period (500) 500 -
Exchange rate adjustments - - -
------------------------------------------- ------------------ ----------------- ----------
Cash and cash equivalents at 30 June
2022 (Unaudited) 799 (7,050) (6,251)
------------------------------------------- ------------------ ----------------- ----------
At 1 January 2022 1,639 (7,550) (5,911)
Cash flow for the year before financing 58 - 58
Movement in borrowings in the year (1,000) 1,000 -
Netting of arrangement fee - 65 65
Exchange rate adjustments 31 - 31
------------------------------------------- ------------------ ----------------- ----------
Cash and cash equivalents at 31 December
2022 (Audited) 728 (6,485) (5,757)
------------------------------------------- ------------------ ----------------- ----------
Ends
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END
IR BUGDILUDDGXD
(END) Dow Jones Newswires
August 23, 2023 02:00 ET (06:00 GMT)
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