Pebble Group PLC (The) Trading update (2057U)
22 Novembre 2023 - 8:00AM
UK Regulatory
TIDMPEBB
RNS Number : 2057U
Pebble Group PLC (The)
22 November 2023
22 November 2023
THE PEBBLE GROUP PLC
("The Pebble Group" or the "Group")
Trading update
The Pebble Group (AIM: PEBB, OTCQX: PEBBF), a leading provider
of digital commerce, products and related services to the global
promotional products industry, is today updating the market on its
expected performance in the year to 31 December 2023 ("FY 23").
Whilst we expect Facilisgroup to achieve revenue growth in the
year, order intake at Brand Addition has been lower than
anticipated and Group revenues for FY 23 are expected to be
approximately GBP124m (FY 22: GBP134.0m). As the Group has
continued to generate stronger gross margins in FY 23 compared to
the prior year, the impact of the revenue reduction is expected to
be partially mitigated, and deliver Group EBITDA of approximately
GBP16m (FY 22: GBP18.0m), maintaining Group EBITDA margins close to
FY 22.
Our cash position remains robust, and the Group expects net cash
as at 31 December 2023 to be no less than prior year net cash of
GBP15.1m, after continued capital investment into Facilisgroup and
the payment of a dividend of GBP1.0m in June 2023.
The Group remains strong financially, and both of our businesses
are strategically well-placed within their respective markets.
Facilisgroup: providing a digital commerce platform for
promotional products businesses in North America
At Facilisgroup, despite the difficult market conditions, FY 23
revenues are expected to increase by approximately 10% compared to
prior year of USD20.4m (GBP16.6m).
We expect the Gross Merchandise Value ("GMV") transacted through
our technology by Partners (customers) to be approximately $1.4bn
in FY 23, slightly ahead of FY 22. This reflects a more challenging
economic environment in the second half of the year and
consequently the proportion of our income, based on in-year Partner
activity, has impacted our overall rate of growth in FY 23.
Facilisgroup EBITDA margins are expected to be approximately 50%
(FY 22: 54.2%) as we continue to invest in our technology , sales
and marketing strategies.
Partner (customer) retention rates continue to be market leading
and consistent with prior year rates of 96%. The total number of
Partners at 21 November 2023 is 242 (31 December 2022: 225), with
an enlarged team supporting the new business pipeline.
We anticipate that Facilisgroup, with its strong market
position, growth opportunities and excellent profit margins, will
become the majority contributor to Group profits moving through
2024.
Brand Addition: providing promotional products and related
services under contract to many of the world's most recognisable
brands
We expect Brand Addition revenues for FY 23 to be approximately
GBP106m (FY 22: GBP117.4m).
This reduction in revenues against FY 22 has been driven
principally from our Technology and Consumer clients, whilst
revenue from our Engineering and Transport sector clients has been
more robust.
With gross margins increasing in FY 23 compared to the 30.7%
achieved in FY 22, the impact of the revenue reduction is expected
to be partially mitigated with the Brand Addition EBITDA margin
expected to be approximately 9% (FY22: 9.8%).
Our clients are strong, global brands and retention rates
continue to be high. At this point, we anticipate recovery in their
spend with us during 2024.
Group outlook
Against the difficult economic backdrop, we are disappointed to
report a reduction in our Group's expected FY 23 results, due to
lower order intake at Brand Addition. Both of our businesses remain
strong financially, are well differentiated within their respective
markets and have a clear strategic plan. Our balance sheet is
robust and we look forward to returning the Group to growth in
2024.
Enquiries:
The Pebble Group Temple Bar Advisory (Financial
Chris Lee, Chief Executive Officer PR)
Claire Thomson, Chief Financial Alex Child-Villiers
Officer William Barker / Sam Livingstone
+44 (0) 750 012 4121 +44 (0) 207 183 1190
pebble@templebaradvisory.com
Grant Thornton UK LLP (Nominated Berenberg (Corporate Broker)
Adviser) Ben Wright / Marie Moy / Mollie
Samantha Harrison / Harrison Clarke D'Arcy Rice
/ Ciara Donnelly +44 (0) 203 207 7800
+44 (0) 207 184 4384
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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END
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