Pebble Group: Building a Rock-Solid Future, One Update at a Time
Written after trading Update 3rd June 2025
Sentiment and Outlook Summary – Pebble Group Trading Update (June 2025)
Trading Update:
The sentiment in Pebble Group’s Pebble (LON:PEBB) latest trading update is cautiously positive. The company reports that trading so far in 2025 is in line with full-year expectations, and there has been no significant adverse impact from recently implemented US tariffs. Operationally, both main business units—Facilisgroup and Brand Addition—are performing well, with Facilisgroup’s gross merchandise value slightly ahead of last year and Brand Addition benefiting from new contract wins, despite some timing-related order delays.
Key Points from the Update:
Performance: Trading year-to-date is in line with FY25 expectations. Facilisgroup’s Gross Merchandise Value is ahead of last year, though purchases with Preferred Suppliers are slightly below due to a slow start to the year. Brand Addition’s total order value is 7% behind last year, but new contracts and order timing are expected to drive growth in the second half of 2025.
Tariffs: The direct impact of US tariffs has been well managed so far. The company notes that US suppliers have mitigated risks by diversifying product origins and investing in inventory ahead of tariff changes. However, there is caution about the possible impact of tariffs on business confidence and marketing budgets in the second half of 2025.
Capital Returns: Pebble Group is ending its current share buyback program and plans to return up to £6.5 million to shareholders via a tender offer, aiming to accelerate shareholder returns. Including dividends and buybacks, total returns to shareholders could reach £13.1 million since May 2024.
Financial Strength: The company maintains a strong balance sheet with increasing cash conversion and a commitment to disciplined capital allocation. FY24 results showed revenue growth, margin improvement, and higher operating profit.
Outlook: The Board remains confident in meeting FY25 market expectations, supported by market-leading positions, long-term client relationships, and recurring revenues. However, the outlook is tempered by caution regarding the broader macroeconomic environment, particularly the potential effects of US tariffs in the second half of the year.
Aspect | Commentary |
Trading Performance | In line with expectations; strong cash generation; order growth expected in H2 2025 |
Tariff Impact | Well-managed so far, but cautious on H2 2025… |
