Promotions firm coping well throughout lockdown period

Pebble

Pebble Group, the Stretford-based corporate promotions specialist, released a trading update ahead of its mid-day annual general meeting today which said it enjoys a “robust financial liquidity position” despite the impact of coronavirus on its business.

The firm, which floated on the AIM market in December 2019, raising £135m which repaid all its existing debts, said it is responding positively to the challenges of COVID-19 and the board remains confident in its prospects.

With its strong balance sheet and cash balances of £9.4m at June 23, which includes a £7.7m drawdown from the company’s £10m committed revolving credit facility, the group maintains a robust financial liquidity position.

It said its Brand Addition business is in recovery mode, with orders invoiced or received to the end of May being 79% of prior year at £39.9m (2019: £50.6m).

COVID-19 initially severely impacted Brand Addition’s c orporate programmes sales orders.

However, as at the end of May, Brand Addition had a total of £39.9m orders invoiced or received, compared with £50.6m in the same period in 2019 and £97.9m in fiscal year 2019. Order intake in the five weeks to June 19, was around 50% of the prior year.

Brand Addition’s clients are global businesses, located across Europe, US and Asia and focused in sectors such as health & beauty, TMT, transport, engineering and financial services, which, said the group, gives it confidence in the re-emergence of sales demand in 2021.

Facilisgroup operations have continued to perform well and increase the number of partners (customers).

New partner acquisition has continued through the second quarter. Partner numbers now total 164 (December 31, 2019: 149), with a further five contracted and awaiting implementation.

Sales order values processed by partners through Facilisgroup technology, to June 19, had increased by 67%, compared with the same period in 2019, as highly entrepreneurial partners adapted rapidly to the changing COVID-19 environment, moving into the supply of high levels of personal protective equipment (PPE) and consumables.

This has resulted in the rolling 12-month sales value of partners breaking through $1bn for the first time. Pebble said it expects this large percentage gain in sales value over the prior year to reduce as the high level of PPE sales slow.

Pebble said it is on track to deliver the strong growth it expected from the business at the start of the year.

The board said it is confident in the group’s ability to work through the disruption caused by COVID-19 and is in a position to re-emerge positively, as it returns towards more normal levels of business activity.

Looking ahead, Pebble said it is pleased with the group’s response to the challenges imposed by COVID-19 and the progress made since the early days of lockdown.

“The board remains confident in the prospects for the group as we plan for 2021 and beyond.”

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