REG - Pebble Group (The) - AGM Trading Update and Notice of Results

PebbleAnnouncement

03/06/2025 07:00

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RNS Number : 1104L  Pebble Group PLC (The)  03 June 2025

3 June 2025

 

THE PEBBLE GROUP PLC

("The Pebble Group", the "Group" or the "Company")

AGM Trading Update and Notice of Results

 

Trading year-to-date in line with FY 25 expectations

Announcing intention to undertake a tender offer to replace the share buyback
programme, accelerating returns to shareholders

 

Ahead of the Annual General Meeting ("AGM"), which is being held later today,
The Pebble Group, a leading provider of technology, products and related
services to the global promotional products industry, announces the following
Trading Update.

 

Trading Update

To date, there has been no significant adverse effect on our revenues from
tariffs implemented on goods imported into the US and at this time our FY 25
forecast remains in line with expectations.

 

At Facilisgroup, to date, Gross Merchandise Value is slightly ahead compared
to prior year, and, after a slower than expected January and February,
purchases with our Preferred Suppliers are slightly below. The recent
investment made into accelerating organic growth has resulted in improving net
new acquisition rates that are expected to contribute to future revenue
growth.

 

At Brand Addition, contract wins in early 2025 have built on those added in
late 2024. Total orders by value to date are 7% behind the same prior year
period. Order placement timing and new contract wins expected to impact
revenue in H2 2025 lead us to anticipate growth during the remainder of 2025
versus the same period in 2024.

 

Across the Group, we remain confident in our ability to maintain our excellent
client retention rates and positively manage our profit margins. Operating
cash conversion is strong and improving as planned. The potential impact of
the macro-economic environment on our H2 25 revenues is harder to anticipate.
We are carefully monitoring trading patterns and will update further in
mid-July with our HY 25 trading update.

 

Tariff impact on our industry and Group

The direct impact of US tariffs on our industry is borne by the US suppliers
who import products from tariff affected countries, being a material
proportion of the US industry. Since the implementation of tariffs in 2018,
these US suppliers have been mitigating the risk of tariff induced price
inflation through diversifying product origin and particularly at the start of
2025, investing into inventory at pre-2025 tariff prices. Their huge efforts
and support for the US industry under such difficult circumstances is greatly
valued.

 

The effect of tariffs on our Group is from purchases made via these US
suppliers by Brand Addition US (23% of total Brand Addition revenues in FY 24)
and indirectly via the purchases made by our Facilisgroup Partners
(customers). To date these effects have been well-navigated.

 

Today's unknown is the impact of tariffs on business confidence in H2 2025
and, therefore, any reduction in end user marketing budgets.

 

Capital allocation priorities

Our priority remains to execute on accelerating organic growth using our
increasing operating cash conversion.

 

Following engagement with our shareholders, the Board has considered various
options to enable the return of excess capital. In May 2024, the Company
launched a £5.0 million buyback of which £3.6 million has been utilised to
date. This buyback programme is ending today.

 

In its place, the Company plans to return up to £6.5m to shareholders through
the initiation of a tender offer. It is the intention that the tender offer
will be launched with the Company's trading update in respect of HY 25, which
will be issued in mid-July.

 

Completion, and full take up, of the tender offer would bring total returns to
shareholders, including the £3.0m FY 24 dividend, to £13.1m since
commencement of the share buyback in May 2024.

 

Outlook and Notice of Results

Whilst we are cautious about the impact of US tariffs on the strength and
confidence of the wider macro economy, trading at Facilisgroup and Brand
Addition is currently supporting the delivery of FY 25 market expectations.

 

The Group's two businesses occupy market leading positions and have
significant heritage in the fragmented promotional products industry. The
businesses also share enduring long-term relationships with clients, Partners
and suppliers which underpin the recurring and repeatable revenues upon which
the solid financial performance and cash generation of the Group has been
built. The Board continues to consider all value-maximising opportunities for
these strong businesses.

 

We will update further in mid-July with our Trading Update ahead of our Half
Year Results announcement on 9 September 2025.

 

 

Enquiries:

 

 The Pebble Group

 Chris Lee, Chief Executive Officer

 Claire Thomson, Chief Financial Officer

 +44 (0) 750 012 4121

 

Temple Bar Advisory (Financial PR)

Alex Child-Villiers

Alistair de Kare-Silver

+44 (0) 207 183 1190

pebble@templebaradvisory.com (mailto:pebble@templebaradvisory.com)

 

Panmure Liberum (Nominated Adviser and Broker)

Edward Mansfield

William King

Gaya Bhatt

+44 (0) 20 3100 2000

 

About The Pebble Group

The Pebble Group is a provider of technology, 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 (http://www.thepebblegroup.com/) .

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