The Pebble Group provides digital commerce, products and related services to the global promotional products industry through two focused, complementary and differentiated businesses: Facilisgroup and Brand Addition.
The Pebble Group operates within the global promotional products market, estimated at $50bn. It is a highly competitive landscape, but distributor participants are predominantly small and local. The North American market is estimated by industry body PPAI to be worth $26.1bn in FY23 and to have grown by 2.2% in the year, slowing in H2. Q124 growth is estimated at 1.5%. The total European market is a little smaller. The industry’s resilience is based on its utility and effectiveness as an advertising medium.
TMT |
audiovisual
TMT |
Outlook
TMT |
Flash note
Christopher Lee
CEO
Claire Thomson
CFO
Forecast net cash (£m)
10.6
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (7.9) | (12.7) | (37.1) |
Relative | (7.0) | (16.2) | (43.3) |
52 week high/low | 98.0p/51.0p |
Pebble’s end April AGM update confirmed trading in line with FY24 expectations, with attractive opportunities for both its businesses. Facilisgroup is a SaaS business, helping North American distributors to optimise their operations, with access to an approved supplier roster. Brand Addition services global brands’ needs for branded product for in-house and external programmes. The well-publicised dip in tech sector marketing spend was a key factor in Pebble’s Q423 outlook revision. Both segments are now well placed to benefit from improving corporate confidence, although timing is uncertain. Pebble is well funded, with £15.9m of net cash (excluding leases) at end FY23, and a £5.0m share buyback is now operational (over £0.5m transacted to date).
Y/E Dec | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2022A | 134.0 | 18.0 | 12.4 | 5.77 | 10.1 | 5.4 |
2023A | 124.2 | 16.0 | 9.9 | 4.59 | 12.7 | 6.1 |
2024E | 128.5 | 16.3 | 10.4 | 4.69 | 12.5 | 6.0 |
2025E | 133.0 | 17.2 | 11.2 | 5.02 | 11.7 | 5.3 |