Pebble Group shows steady progress with latest interim results

Pebble Group, the Stretford-based corporate promotions specialist, expects the current financial year to be in line with expectations after publishing improved interim results today.

Revenues in the six months ended June 30, 2023, were five per cent better at £63.3m, and pre-tax profits rose by 11% to £3.1m. Net cash stood at £4.2m, an improvement on the £100,000 net debt a year ago.

Sales in both the group’s divisions improved, with Facilisgroup achieving £9.2m, up 24% on the prior year, and Brand Addition showing sales of £54.2m ,up 2.5%.

Facilisgroup achieved new wins that saw Syncore grow to 238 partners at September 4, 2023, against 225 by December 31, 2022, with a strong pipeline. Commercio Stores, the ecommerce offering introduced in 2022, became revenue generating with, to date, circa 20% of partners utilising the product.

And good progress has been made on the development of the orders product, aimed at smaller distributors, with a beta version launched in the second half of 2023.

Brand Addition revenue growth continues to be underpinned by its diverse and loyal client base with investments into ESG and global capabilities further differentiating the business with its target market.

Pebble said its balance sheet is strong and the working capital cycle following its normal pattern, with good profit to cash conversion resulting in a net cash position at the full year expected to be circa £17m.

In March 2023, the board announced a maiden dividend payment in respect of fiscal year 2022 and stated its intention to implement a progressive dividend policy moving in the medium term, towards its stated position at IPO of making dividend payments of around 30% of profit after tax.

The board said it remains committed to this decision but does not consider the introduction of an interim dividend payment is necessary at this time. An update on the dividend payment in respect of 2023 will be provided at the time of the full year announcement in March 2024.

Chief executive, Chris Lee, said: “Our attractive markets and blue-chip clients have seen Facilisgroup and Brand Addition trade solidly in the first half, as we deliver against our stated strategies.

“Both businesses have strong and differentiated market positions and we look forward to FY 23 when results are expected to be in line with market expectations. We anticipate that Facilisgroup will become the majority contributor to our profits as we move through 2024.”