REG - Pebble Group (The) - AUDITED FULL YEAR RESULTS 2025
Today 07:00
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RNS Number : 8648W Pebble Group PLC (The) 17 March 2026
17 March 2026
THE PEBBLE GROUP PLC
("The Pebble Group", the "Group" or the "Company")
AUDITED FULL YEAR RESULTS 2025
Trading in line with expectations, with accelerating Partner wins at
Facilisgroup
Delivering shareholder returns with the launch of a £5.0m share buyback
The Pebble Group, a leading provider of technology, products and related
services to the global promotional products industry, announces its audited
results for the year ended 31 December 2025 ("FY 25").
Commenting on the results, Chris Lee, Chief Executive Officer of The Pebble
Group, said:
"Performance was in line with expectations, with strong strategic progress
across the Group. Facilisgroup continues to build momentum through
accelerating Partner wins at an attractive lifetime value, while Brand
Addition delivered improved margins with continued new business momentum.
Strong cash conversion supported returns to shareholders of £11.7m in 2025.
"Our focus remains on organic growth and disciplined capital allocation. We
intend to continue our progressive dividend policy alongside a new £5.0m
share buyback starting today in line with our commitment to return value to
shareholders."
Financials
Statutory results FY 25 FY 24 Change
Revenue £124.7m £125.3 -0.5%
Gross profit margin 45.6% 44.3% +1.3ppt
Operating profit £7.4m £8.6m -14.0%
Profit before tax £6.9m £8.1m -14.8%
Basic earnings per share 3.45p 3.83p -9.9%
Cash £9.6m £16.5m -£6.9m
Dividend per share 2.00p 1.85p +8.1%
Other financial highlights FY 25 FY 24 Change
Adjusted EBITDA(1) £15.8m £16.7m -5.4%
Free cash flow conversion(2) 91% 68% +23ppt
Basic adjusted earnings per share(3) 3.86p 4.63p -16.6%
Capital returns(4) £11.7m £3.4m +£8.3m
Financial highlights
● Group revenue of £124.7m (FY 24: £125.3m) was in line with the prior year
● Gross profit percentage increased in FY 25 by 1.3ppt to 45.6%, driven by
improved margins at Brand Addition
● Group Adjusted EBITDA was £15.8m (FY 24: £16.7m), reflecting the signalled
investment to accelerate new Partner acquisition at Facilisgroup
● Free cash flow conversion increased to 91% (FY 24: 68%), reflecting reduced
capital expenditure and demonstrating the inherent cash-generative
characteristics of the business
● Capital returns to shareholders totalled £11.7m in FY 25 (FY 24: £3.4m)
Business highlights
Facilisgroup:
● Secured 30 new Partners during the year (FY 24: 16), following an incremental
investment of approximately $1m in sales and marketing
● 253 Partners (FY 24: 239) as at 31 December 2025, with attrition remaining low
and an underlying retention rate of 97%
● Increasingly confident in the health of our LTV/CAC ratio and investing behind
this for accelerating revenue growth
Brand Addition:
● Revenues in line with prior year, supported by disciplined management,
effective cost control and new client acquisitions during a period of economic
uncertainty
● Revenue from new client contracts during 2025 totalled £6.5m (FY 24: £5.3m)
● Adjusted EBITDA returns increased to 10.6% (FY 24: 10.0%) and gross margin
increased to 37.0% (FY 24: 35.2%)
● Following investment into people and processes, Adjusted EBITDA increased to
£11.4m (FY 24: £10.8m
Current trading, outlook and shareholder returns
● At Facilisgroup, we are becoming increasingly confident in the high Partner
lifetime value and the ability to convert new Partners at a healthy
acquisition cost which underpins expected revenue growth
● At Brand Addition, the new business momentum continues and in 2026 we seek to
increase revenues whilst maintaining the improvement in profit margins
● The Board is pleased to propose the payment of a final dividend of 2.0 pence
per share for FY 25 (FY 24: 1.85 pence per share)
● Today we announce our intention to commence a share buyback for consideration
of up to £5.0m
(1) Adjusted EBITDA means operating profit before depreciation, amortisation and
share-based payment charge/credit
(2) Free cash flow conversion is defined as free cash flow divided by adjusted
operating profit
(3) Basic adjusted earnings per share ("EPS") represents adjusted earnings (profit
after tax before amortisation of acquired intangible assets and share-based
payment charge/credit net of taxation) divided by the weighted average number
of shares in issue during the year
(4) Capital returns are the sum of returns to shareholders via dividends, share
buyback and tender offer
Presentation for analysts and investors
A presentation for analysts and investors with Q&A will take place at
8:00am today by webinar. Please register to attend via this link: Analyst
Presentation
(https://events.teams.microsoft.com/event/446a0395-f8ff-4d2c-98ca-d5cb160570c2@d78da0af-dec0-4c18-b3dc-54c78f21f08f)
A copy of the presentation is available on the Investors section of The Pebble
Group's website at https://www.thepebblegroup.com/investors/
(https://www.thepebblegroup.com/investors/)
Presentation for retail investors
The management team is hosting a separate online presentation for retail
investors with Q&A on Thursday 19 March at 4.00pm. To participate, please
register with Progressive here: Retail Investor Presentation
(https://bit.ly/PEBB_FY25_webinar)
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/) .
CHAIR'S REVIEW
Delivering on our strategic priorities
Introduction
I am pleased to present my second annual statement as Chair of The Pebble
Group.
In FY 25, the Group delivered on its strategic priorities, making disciplined
investments to support future growth, and strengthened the foundations of both
Facilisgroup and Brand Addition. These actions contributed to a year of solid
financial performance and have positioned the Group well for organic revenue
growth in FY 26 and beyond.
During the year, I met with several of our shareholders to understand their
views on governance, current priorities and strategic matters, ensuring that
the Board continues to take account of the perspectives of our investor base
in its decision-making. I also met with many other stakeholders across the
Group, experiencing first-hand the quality of our teams, the strength of our
long-term client and Partner relationships and the clear sense of momentum
across both businesses.
The Group's foundation is built on high levels of recurring and repeatable
revenues, differentiated capabilities and a strong balance sheet, providing a
compelling base from which to unlock shareholder value.
Performance
The Group delivered financial performance in line with expectations and made
meaningful progress against its strategic priorities which are detailed in the
Chief Executive Officer's Review. Revenue was £124.7m (FY 24: £125.3m), and
Adjusted EBITDA was £15.8m (FY 24: £16.7m), reflecting the planned, targeted
investment in sales and marketing at Facilisgroup that has delivered an
acceleration in new Partner wins.
A highlight of the year was the expected significant improvement in free cash
flow conversion to 91% (FY 24: 68%), driven by disciplined cost and working
capital management and a normalisation in capital expenditure. This strong
cash generation supported total shareholder returns of £11.7m (FY 24: £3.4m)
whilst maintaining a debt-free balance sheet, reinforcing the Group's
resilience and ability to invest for growth while returning capital to
shareholders. Our confidence in the cash-generative characteristics to sustain
our organic growth strategy whilst delivering excess cash has supported our
decision to announce a further £5.0m capital return by way of a share buyback
programme announced separately today.
Our market and strategy
The global promotional products market remains a large, fragmented, and
attractive sector, with an estimated value of approximately $50bn. Our
businesses are strategically well-positioned in this market: Facilisgroup as a
technology-enabled partner to growth-oriented distributors in North America;
and Brand Addition as a leading global provider of end-to-end branded
merchandise programmes for many of the world's best-known brands.
Across the Group, our strategic objectives remain clear:
· At Facilisgroup, our priority is to retain our high Partner retention rates
and convert the strong momentum in new Partner wins into material revenue
growth, supported by continued enhancement of the Syncore platform and
market-leading services.
· At Brand Addition, the focus remains on deepening longstanding client
relationships, sustaining high client retention, growing new business, and
further strengthening margins through increased efficiency and automation.
· At Group level, we will continue to apply a disciplined capital allocation
framework that balances investment in growth with meaningful shareholder
returns.
These strategic priorities support our long-term ambition to deliver sustained
revenue growth, high levels of cash generation and increasing value for
shareholders.
Artificial intelligence (AI) is an increasing area of strategic focus for the
Group, with awareness and adoption of AI technologies across our industry
increasing during the year. We do not expect any adverse impact on the demand
for promotional products in our end markets as the need for brands to make a
physical, emotional, long-term connection with their stakeholders remains a
key element of their marketing strategies. We closely monitor developments in
the competitive environment in general as well as what may directly impact
Facilisgroup and Brand Addition. Internally, we will deploy AI enabled‑
tools at scale to support operational efficiency, greater productivity and
enhanced decision making‑ to improve the experience we deliver to our
Partners, clients and end customers. At Facilisgroup, we are uniquely
positioned in 2026 to deploy Vertical AI, dedicated to the promotional
industry, supported by unique industry wide data assets and workflow
integrations. We approach the use of AI in a responsible manner, ensuring it
is adopted in a way that supports sustainable growth while remaining aligned
with our governance and risk management frameworks which protect our
stakeholders.
Team and Board changes
I would like to thank all our teams across Facilisgroup, Brand Addition and
The Pebble Group for their hard work, professionalism and dedication during
the year. Our people remain our greatest strength and are central to
delivering consistent, high-quality outcomes for clients and Partners.
During the year, we saw an important change to the composition of the Board.
As part of a planned transition, Stuart Warriner stepped down as a
Non‑executive Director in September 2025. On behalf of the Board, I would
like to extend our sincere thanks to Stuart for his significant contribution,
wise counsel, and dedicated service to The Pebble Group. His experience and
perspective have supported the Group through an important period of strategic
development.
We were also delighted to welcome Markus Bihler to the Board as a
Non‑executive Director. Markus brings extensive international leadership
experience, including a strong background in technology‑enabled business
models, operational improvement, and value‑creation strategies across global
markets. His expertise in scaling digital platforms, combined with deep
financial and strategic insight, will further strengthen the Board as we
continue to pursue organic growth and build long‑term value across our
businesses.
Environmental, Social and Governance (ESG)
ESG remains an integral part of how we manage and grow our businesses. We
continue to focus on the areas that matter most to our stakeholders and to our
business's long-term success: our strong governance framework; reducing
environmental impact; attracting and retaining talent; supporting communities;
and operating with integrity. We will publish our annual ESG Report in March
2026, setting out the meaningful progress against our ESG goals and our
ongoing commitments that drive meaningful change and hold ourselves
accountable.
Return of value to shareholders in FY 25
The Group's strong free cash flow generation enabled shareholder returns of
£11.7m in FY 25 (FY 24: £3.4m), delivered through an annual dividend of
£3.0m (FY 24: £2.0m), market repurchases of Ordinary Shares totalling £2.2m
(FY 24: 1.4m) and a tender offer repurchase of Ordinary Shares totalling
£6.5m (FY 24: £nil). This approach reflects our commitment to maintaining a
robust, balance sheet while returning excess capital to shareholders in a
disciplined and value-enhancing way.
Capital allocation priorities to unlock further shareholder value
Looking forward, our priority is to continue to execute on our organic growth
strategy. At Facilisgroup, we are seeking a return to material revenue growth
and will further invest in the people and strategies that, in 2025, have
delivered excellent Partner retention and strong new Partner wins. At Brand
Addition, we will continue to invest in the proposition and excellent customer
experience as we seek to win and service a growing portfolio of global brands.
In 2026, we also intend to deliver capital returns to shareholders via:
i) the continuation of a progressive dividend policy, recommending a dividend
payable in 2026 of 2.0p per share (2025: 1.85p per share), a distribution
totalling £3.0m (2025: £3.0m). This will be paid on 11 May 2026, subject to
shareholder approval; and
ii) the buyback and cancellation of Ordinary Shares for a consideration of up to
£5.0m.
We anticipate undertaking the buyback process through market purchases on the
London Stock Exchange, starting today.
Outlook
The Group has entered FY 26 with encouraging momentum. The increase in
Facilisgroup new Partner wins in FY 25 provides a strong foundation for
revenue growth, and Brand Addition continues to demonstrate resilience,
quality and strong client retention. While we remain mindful of broader
macroeconomic conditions, the Board is confident that our robust balance
sheet, compelling market opportunity and clear long‑term strategy position
the Group well to deliver profitable growth, strong cash generation and
sustainable value creation in the years ahead.
The Board continues to actively review its strategic options, including the
Group's structure, to ensure long‑term shareholder value creation reflects
the financial strength and market‑leading positions of the Group's
individual businesses.
Anne de Kerckhove
Independent Non-executive Chair
17 March 2026
CHIEF EXECUTIVE OFFICER'S REVIEW
Summary of performance
In 2025, the Group had four priorities:
i) to invest in accelerating new Partner wins at Facilisgroup to drive future
revenue growth;
ii) to demonstrate the resilience of Brand Addition's financial performance in a challenging market;
iii) to increase Group free cash flow conversion to above 80%; and
iv) to return a significant level of excess capital to shareholders.
We are pleased to report that, for the year ended 31 December 2025, the Group
achieved each of these objectives and delivered results in line with
expectations.
Group revenue was £124.7m (FY 24: £125.3m), broadly in line with the prior
year. Group Adjusted EBITDA was £15.8m (FY 24: £16.7m), reflecting the
planned investment in sales and marketing at Facilisgroup which has delivered
an acceleration in new Partner acquisition, underpinning organic growth.
Performance against our priorities was as follows:
i) Facilisgroup secured 30 new Partners during the year (FY 24: 16), following an
incremental investment of approximately $1m in sales and marketing. This
investment has delivered strong momentum which has continued into 2026. We are
well-positioned for revenue growth.
ii) Brand Addition delivered revenues in line with FY 24 while increasing profit
margins, supported by disciplined management and effective cost control during
a period of economic uncertainty.
iii) Free cash flow conversion increased to 91% (FY 24: 68%), reflecting reduced
capital expenditure and demonstrating the inherent cash-generative
characteristics of the business.
iv) Capital returns to shareholders totalled £11.7m (FY 24: £3.4m).
Introduction
The Pebble Group: Building brands, growing relationships, strengthening
businesses
The Group's two businesses, Facilisgroup and Brand Addition, both hold
market‑leading positions and benefit from significant heritage within the
fragmented promotional products industry. Each is supported by longstanding
relationships with clients, Partners, and suppliers, which underpin the
recurring and repeatable revenues that drive the Group's financial performance
and cash generation.
Our expertise lies in working with high‑quality businesses across the supply
chain to deliver branded products efficiently, responsibly, and at scale. This
is enabled through a combination of technology, robust processes, continued
investment in infrastructure, and the experience and commitment of our people.
Growth is driven first by creating ongoing value for existing clients and
Partners, and then by attracting new long‑term relationships.
With an estimated global market of approximately $50bn per annum, the
promotional products industry offers substantial and attractive opportunities
for both Facilisgroup and Brand Addition. The Group is increasingly
well-positioned to capitalise on these opportunities while maintaining a
disciplined and sustainable approach to growth.
Business Review
Facilisgroup: a strategic partner that brings together technology, processes,
supply chain advantages and a connected community to empower promotional
products distributors in North America to scale efficiently and grow
profitably
FY 25 FY 24 FY 25 FY 24
ARR £16.4m £16.9m $21.6m $21.6m
Other revenue £0.8m £0.7m $1.0m $0.9m
Total revenue £17.2m £17.6m $22.6m $22.5m
Adjusted EBITDA £7.3m £8.8m $9.6m $11.2m
Operating profit £2.4m £3.5m $3.2m $4.5m
Capital expenditure £3.3m £5.0m $4.4m $6.3m
Financial results
Facilisgroup revenue in FY 25 was stable in USD, the business's home currency,
reflecting flat like‑for‑like Gross Merchandise Value ("GMV") and Partner
numbers in 2024 which influences 2025 revenues. In GBP, the Group's reporting
currency, revenue decreased by £0.4m (2.3%) compared to FY 24, driven by
adverse foreign exchange movements.
Adjusted EBITDA reduced to $9.6m (FY 24: $11.2m) following the planned
investment of $1.7m in operating expenses of which $1.3m related to an
investment in people, principally to support the acceleration of new Partner
acquisition. The cash impact of this investment was offset by a $1.9m
reduction in capital expenditure reflecting the full year benefit of the
normalisation of our capital expenditure programme.
Approach to the market
Facilisgroup targets quality, growth‑oriented promotional products
distributors in North America with annual sales typically exceeding $2m and as
large as $70m. This results in a targeted, serviceable market of circa 4,500
businesses.
To compete effectively and maximise their profitability, these distributors
require industry‑specific technology, strong supplier relationships, and
sector expertise. Facilisgroup brings these elements together through its
technology platform, scale, and operating model.
Our proprietary technology, Syncore, is an end‑to‑end, industry‑specific
order processing platform designed to support efficiency across the full sales
order cycle. In 2025, Syncore processed $1.6bn of sales orders for Partners,
representing approximately 6% of industry spend in North America.
This scale enables Facilisgroup to operate a market network (group purchasing
organisation), connecting Partners to leading suppliers with preferential
commercial terms and access. The resulting community created by Partners,
Preferred Suppliers and Facilisgroup supports collaboration through events,
learning initiatives, incentive programmes, and awards.
This model generates a powerful two‑sided recurring revenue income stream,
comprising subscription fees from Partners for Syncore and transaction‑based
fees from Preferred Suppliers. Facilisgroup has an established track record of
supporting the long‑term growth of these high‑quality distributors and
suppliers, evidenced by its strong Partner retention and attractive profit
margins.
Progress in the year and focus for 2026
During the year, Facilisgroup completed the steps to return to revenue growth
in 2026.
The team delivered enhancements to Syncore through a consistent release cycle,
reinforcing the platform's technology leadership. A clear development roadmap
is in place, including integrations with complementary technologies and
deepened use of the vast data within Syncore to generate valuable insights for
Partners and Preferred Suppliers.
We also strengthened how our proposition is communicated to the market through
investment in leadership capability, an enhanced sales team, and more focused
messaging. As a result, 30 new Partners were contracted in FY 25 (FY 24: 16).
Facilisgroup had 253 Partners as at 31 December 2025 (2024: 239). Attrition
has remained low and consistent with prior years with eight Partners having
their businesses acquired and four Partners being exited by Facilisgroup,
leaving an attrition of four and a high underlying retention rate of 97% (FY
24: 96%).
At circa $0.5m, the average lifetime value of a new Partner is strong. Against
this backdrop, the incremental investment of circa $1m in 2025 to drive new
Partner acquisition is expected to generate attractive returns, supporting
revenue growth from 2026 onwards.
GMV increased by 5% to $1.6bn (FY 24: $1.5bn), broadly in line with estimated
growth across the North American industry. Preferred Supplier purchases of
$0.5bn were flat year‑on‑year, reflecting changes in purchasing behaviour
influenced by uncertainty around US tariffs. Early activity in 2026 indicates
a return towards pre‑tariff purchasing patterns.
Investment in leadership capability, team quality, and technology continues to
deliver tangible results. Engagement with Partners and Preferred Suppliers
remains strong, with a Net Promoter Score in 2025 of 50 (2024: 35).
The momentum in new Partner wins achieved in 2025 has continued into 2026.
Given the favourable relationship between Partner lifetime value and
acquisition cost, we are continuing to invest to support material growth,
which we believe represents an effective and attractive use of capital within
the Group.
Our focus for 2026 is to return Facilisgroup to revenue growth, providing a
foundation towards becoming a "Rule of 40" business, being the sum of
percentage revenue growth and percentage return on sales of Adjusted EBITDA
less capital expenditure.
Brand Addition: an end-to-end branded merchandise provider that enables
companies of scale to build meaningful connections with their customers,
employees and communities
FY 25 FY 24
Revenue £107.5m £107.7m
Gross profit £39.8m £37.9m
Gross profit margin 37.0% 35.2%
Adjusted EBITDA £11.4m £10.8m
Operating profit £7.9m £7.9m
Capital expenditure £1.6m £1.8m
Financial results
In FY 25, revenue was in line with the prior year at £107.5m (FY 24:
£107.7m) as performance improved in the second half of the year, with H2 25
revenue increasing by 3.0% compared to H2 24.
Revenue from new client contracts invoiced during 2025 totalled £6.5m. As a
cohort, underlying existing client spend declined by a similar amount,
reflecting the financial pressures on clients' budgets in a year of economic
disruption. Client contract retention by number remained strong, positioning
the business well as new contract wins mature and deliver a full year impact
in 2026.
Tariff-related uncertainty, particularly during the first half of the year,
created a challenging operational environment. The team responded effectively,
with gross margin increasing in FY 25 to 37.0% (FY 24: 35.2%). Following
investment into people and processes, Adjusted EBITDA increased to £11.4m (FY
24: £10.8m), representing an improvement in Adjusted EBITDA margin to 10.6%
(FY 24: 10.0%).
Approach to the market
Brand control and international consistency is becoming increasingly important
to large global organisations when managing their promotional merchandise,
which is an integral part of their marketing strategies. Brand Addition aligns
with this approach through thoughtfully designed products that engage
stakeholders and are delivered via an auditable and high‑quality supply
chain to protect brand integrity.
Brand Addition has built a reputation and infrastructure that results in
winning and working with many leading global brands, over the long term. The
business provides a range of complex, end‑to‑end services underpinned by
technology and creative product solutions with a consistent sustainability
focus, delivered across multiple geographies.
Brand Addition invoices clients for the products supplied, applying a margin
that supports the value added through its systems, experienced teams, and
global infrastructure.
Key attributes of Brand Addition and the market in which it operates include:
● a large total addressable market of approximately $4bn;
● around 800 global opportunities on Brand Addition's active target list;
● strong client retention among well‑known global brands;
● highly repeatable revenues over the medium term; and
● improved margins from the expansion of services delivered to clients.
Supported by high retention rates, a differentiated service offering, and the
scale of the serviceable addressable market, Brand Addition's ambition to
achieve organic growth of approximately 5% per annum is considered both
disciplined and achievable.
Progress in the year and focus for 2026
Brand Addition entered 2026 with 97% retention of its top 30 clients in FY 25,
many being among the world's leading global brands. This high level of
retention underpins revenue consistency and supports a sustainable organic
growth opportunity.
Since the Group's IPO in 2019, Brand Addition has delivered solid financial
performance and cash generation while continuing to support its clients
through a period of significant external disruption, including Brexit,
COVID‑19, supply chain and freight challenges, and changes in US tariffs.
This performance demonstrates the strength of the business model, the quality
of our people, and the resilience of our client relationships.
Over recent years, the team has expanded the range of services offered to
clients, contributing to improved gross margins. Looking ahead, we will
continue to manage the cost base of the business with discipline, targeting an
Adjusted EBITDA return on sales of 10%+, based on expected gross margins of
35%+.
Following initiatives implemented during 2024 and 2025, the number and value
of new business wins improved during 2025. As these contracts are implemented
in 2026, we expect a positive impact on revenues in FY 26 and beyond. The new
business pipeline entering 2026 remains encouraging.
People and Environmental, Social and Governance (ESG)
My thanks go to everyone across Facilisgroup, Brand Addition and The Pebble
Group. Their commitment, collaboration and willingness to go the extra mile,
often in demanding circumstances, was critical to our progress in 2025 and
positions us well for the opportunities ahead.
Our initiatives that fall under the ESG title remain a core driver of our
long‑term, responsible growth. Continued investment in people saw our
engagement score increase to 74 (FY 24: 71) and volunteering hours rise 9% to
1,714. In 2025, we launched our net‑zero strategy, setting revised Scope 1
and 2 targets and introducing Scope 3 commitments. We reduced total Group
emissions by 16%, maintained 100% renewable electricity and strengthened Scope
3 data through improved processes and supplier engagement. Governance was
further strengthened through new Fraud Prevention and Artificial Intelligence
policies, alongside continued progress in responsible sourcing, with 175
supplier assessments completed.
We remain focused on delivering sustainable progress and long‑term value for
all stakeholders. Further detail will be provided in our 2025 ESG Report, to
be published in March 2026.
Current trading and outlook
At Facilisgroup, we are becoming increasingly confident in the high Partner
lifetime value and our ability to convert new Partners at a healthy
acquisition cost. Therefore, we will continue to invest for profitable growth
to maximise long‑term cash flow. We expect this investment to begin
generating accelerated revenue growth from 2026 onwards.
Alongside this, new business momentum continues at Brand Addition and in 2026
we seek to increase revenues whilst maintaining the improvement in profit
margins.
Chris Lee
Chief Executive Officer
17 March 2026
CHIEF FINANCIAL OFFICER'S REVIEW
Overview
Group revenue of £124.7m (FY 24: £125.3m) was in line with prior year and
Adjusted EBITDA of £15.8m (FY 24: £16.7m) was 5% behind following the
signalled investment to accelerate new Partner acquisition at Facilisgroup.
Operating profit was £7.4m (FY 24: £8.6m). The Board is pleased to propose
the payment of a final dividend of 2.0 pence per share for FY 25 (FY 24: 1.85
pence per share). This will be payable on 11 May 2026 subject to shareholder
approval.
The Group's balance sheet remains strong and its liquidity position continues
to be robust with cash balances of £7.4m at 16 March 2026 and no amounts
drawn down on the Company's £10.0m committed revolving credit facility.
£'m FY 25 FY 24
Revenue 124.7 125.3
Gross profit 56.9 55.5
Gross profit margin 45.6% 44.3%
Adjusted EBITDA 15.8 16.7
Depreciation and amortisation (8.1) (8.6)
Share-based payment (charge)/credit (0.3) 0.5
Operating profit 7.4 8.6
Net finance costs (0.5) (0.5)
Profit before tax 6.9 8.1
Tax (1.5) (1.7)
Profit for the year 5.4 6.4
Weighted average number of shares 156,079,283 166,216,248
Basic adjusted EPS 3.86p 4.63p
Basic EPS 3.45p 3.83p
Revenue
Group revenue for FY 25 was £124.7m (FY 24: £125.3m). Facilisgroup revenue
was £17.2m (FY 24: £17.6m), reflecting a 2% decline in GBP but a 1% increase
on a constant currency basis. The slight increase was derived from incremental
fees from our Preferred Suppliers; ARR from Partner subscriptions was flat in
the year reflecting reduced Partner numbers entering FY 25. The in-year build
of subscriptions from new Partner acquisition lagged the impact of Partner
churn. Revenue in Brand Addition was £107.5m (FY 24: £107.7m) as revenue
from new clients offset softening in some existing client spend.
Gross profit
Following the improvements made in FY 24, gross profit as a percentage of
revenue increased further during FY 25 by 1.3ppt to 45.6% as the value of the
complex services Brand Addition delivers to its clients continued to translate
into improved margins.
Adjusted EBITDA
Adjusted EBITDA for FY 25 was £15.8m (FY 24: £16.7m) made up as follows:
- Facilisgroup at £7.3m (FY 24: £8.8m) principally reflects the planned
investment in sales and business leadership to accelerate revenue growth. From
this investment we are experiencing a significant improvement in net new
Partner wins that we expect to benefit revenues in FY 26 and beyond;
- Brand Addition at £11.4m (FY 24: £10.8m) as costs remain well controlled and
continued improvements in gross profit margins translated to Adjusted EBITDA;
and
- Central costs of £2.9m (FY 24: £2.9m).
Depreciation and amortisation
The total charge in the year was £8.1m (FY 24: £8.6m), of which £6.0m (FY
24: £6.3m) related to the amortisation of intangible assets. The amortisation
of intangible assets in FY 24 included £0.9m in respect of acquired
intangible software assets that were fully amortised in FY 24 and therefore
has no corresponding charge in FY 25. The increase in the underlying expense
from FY 24 arises as the increased investment in new software products from
prior years is now being charged to the income statement.
Share-based payments
The total charge for the year under IFRS 2 "Share-based payment" was £0.3m
(FY 24: credit of £0.5m) and relates to the 2024 and 2025 awards made under
The Pebble Group Long Term Incentive Plan (LTIP) and Sharesave Plan. The
charge in FY 25 includes a credit of £0.3m to reflect that no equity
instruments are expected to vest under the performance conditions of the 2024
LTIP award. More details of the performance conditions will be provided in the
Director's Remuneration Report.
Operating profit
Operating profit for the year was £7.4m (FY 24: £8.6m) reflecting the
movements in Adjusted EBITDA and share-based payments discussed above.
Finance costs
Net costs in the year of £0.5m (FY 24: £0.5m) include £0.3m interest costs
on leases capitalised in accordance with IFRS 16 "Leases" (FY 24: £0.4m) and
£0.2m of other interest including amounts in relation to the Group's £10.0m
committed RCF facility (FY 24: £0.1m).
Taxation
The total tax charge for the year was £1.5m (FY 24: £1.7m) resulting in a
reported effective tax rate of 21.8% (FY 24: 21.2%).
The effective rate of tax was lower than the UK standard rate of 25% due
principally to relief that the Group is eligible to claim in the USA for
qualifying research and development costs incurred by Facilisgroup. In
addition, the net prior year current tax and deferred tax adjustment also
reduced the overall effective rate of tax. These adjustments relate to tax
accrual to tax return adjustments and the acceleration of tax relief on
capital expenditure.
As a group with worldwide operations, The Pebble Group plc is subject to
several factors that may affect future tax charges, principally the levels and
mix of profitability in different jurisdictions, transfer pricing regulations,
tax rates imposed and tax regime reforms. The Group is subject to income taxes
in the UK, Ireland, Germany, Turkey, USA, Canada, China and Hong Kong.
Earnings per share
The earnings per share analysis in note 5 covers both adjusted earnings per
share (profit attributable to equity shareholders before amortisation of
acquired intangibles and share-based payment charge/credit net of taxation
divided by the weighted average number of shares in issue during the year),
and basic earnings per share (profit attributable to equity shareholders
divided by the weighted average number of shares in issue during the year).
Adjusted earnings were £6.0m (FY 24: £7.7m), meaning basic adjusted earnings
per share was 3.86 pence per share (FY 24: 4.63 pence per share), a decrease
of 0.77 pence per share. Basic earnings per share was 3.45 pence per share (FY
24: 3.83 pence per share), a decrease of 0.38 pence per share.
Dividends
The Board is proposing the payment of a final dividend of 2.0 pence per share
(FY 24: 1.85 pence per share), a distribution totalling £3.0m. This will be
paid on 11 May 2026, subject to shareholder approval, to those shareholders on
the register of members on 17 April 2026. The shares will trade ex-dividend on
16 April 2026.
Cash flow
The Group had a cash balance of £9.6m at 31 December 2025 (2024: £16.5m).
This was after cash distributions to shareholders of £11.7m (FY
24: £3.4m), excluding transaction costs, and purchases of shares by The
Pebble Group Employee Benefit Trust of £0.6m (FY24: £0.1m).
Cash flow for the year is set out below.
£'m FY 25 FY 24
Adjusted EBITDA 15.8 16.7
Movement in working capital (1.7) (1.2)
Capital expenditure (4.9) (6.8)
Leases - capital (1.7) (1.7)
Operating cash flow 7.5 7.0
Free cash flow conversion % 91% 68%
Tax paid (0.8) (2.7)
Net finance cash flows (0.4) (0.4)
Dividends paid (3.0) (2.0)
EBT purchase of own shares (0.6) (0.1)
Acquisition of own shares (9.0) (1.4)
Exchange (loss)/gain (0.6) 0.2
Net cash flow (6.9) 0.6
Operating cash flow
Operating cash flow before tax payments and financing activities increased by
£0.5m in the year to £7.5m. This increase is net of a £1.7m investment in
working capital and a £1.9m reduction in capital expenditure following the
Group's signalled reduction in the level of investment in new product
development at Facilisgroup.
Free cash flow conversion is an important metric for the Group. Its increase
in the year to 91% (FY 24: 68%) demonstrates the ongoing strength of the
cash-generative qualities of our businesses and provides us with further
options around capital allocation.
Balance sheet and shareholders' funds
Net assets decreased in the year by £9.2m. The balance sheet is summarised
below.
£'m FY 25 FY 24
Non-current assets 64.2 69.2
Working capital 15.4 14.2
Cash 9.6 16.5
Lease liabilities (5.2) (6.9)
Other net liabilities (1.8) (1.6)
Net assets 82.2 91.4
Non-current assets
Non-current assets are the most significant balance sheet category and
comprise the following:
£'m FY 25 FY 24
Goodwill 35.8 36.0
Customer relationships 6.6 7.6
Software development costs 16.3 18.2
Property, plant & equipment 5.5 7.1
Deferred tax assets - 0.3
Non-current assets 64.2 69.2
Amounts classified as goodwill and customer relationships relate to historic
acquisitions made by the Group.
Software development costs, which include £4.5m (FY 24: £6.5m) spend in the
year on technology products, relate to ongoing investment in the Group's
proprietary software and in particular, the Facilisgroup software platform to
ensure our technology remains market leading, differentiated from the
competition and continues to evolve to support our medium-term growth plans.
The costs are capitalised in accordance with IAS 38 "Intangible Assets" and,
once the product is released to market, amortised over the period the Group
expects to benefit from its development. The amortisation period is typically
three years.
Property, plant and equipment primarily comprises the costs of right-of-use
assets capitalised in accordance with IFRS 16.
Working capital
Working capital of £15.4m is £1.2m higher than FY 24 which relates to the
weighting of sales in Q4 25 when compared with the previous year.
Lease liabilities
Lease liabilities of £5.2m (FY 24: £6.9m) principally relate to Group
properties capitalised in accordance with IFRS 16. The reduction in the year
reflects payments made under the lease agreements.
Other net liabilities
Other net liabilities of £1.8m (FY 24: £1.6m) are net tax liabilities of
which £2.6m (FY 24: £1.6m) is deferred tax. £1.5m of the deferred tax
liability (FY 24: £1.4m) relates to acquired customer relationships. These
liabilities will reverse over the period that the assets are amortised.
Alternative Performance Measures (APMs)
Throughout this report, the Group has used a number of APMs as key performance
indicators in addition to those reported under IFRS. These are used to provide
additional clarity to the Group's underlying financial performance and are
used internally by management to monitor business performance, in its
budgeting and forecasting and also for determination of Directors' and senior
management remuneration. These APMs are not defined under IFRS and, therefore,
may not be directly comparable with adjusted measures presented by other
companies. The non-GAAP measures are not intended to be a substitute for, or
superior to, any IFRS measures of performance. However, they are considered by
management to be important measures used in the business for assessing
performance. They have been consistently applied in all years presented.
The following are key non-GAAP measures identified by the Group and used in
the financial statements.
Adjusted EBITDA, which means operating profit before depreciation,
amortisation and share-based payment charge/credit. Refer to note 6 for
reconciliation.
Adjusted operating profit, which means operating profit before amortisation of
acquired intangible assets and share-based payment charge/credit. Refer to
note 6 for reconciliation.
Adjusted profit before tax, which means profit before tax, amortisation of
acquired intangible assets and share-based payment charge/credit. Refer to
note 6 for reconciliation.
Adjusted earnings, which means profit after tax before amortisation of
acquired intangible assets and share-based payment charge/credit net of
taxation. Refer to note 6 for reconciliation.
Adjusted earnings per share, which means adjusted earnings divided by the
weighted average number of shares in issue during the year. Refer to note 5
for reconciliation.
Claire Thomson
Chief Financial Officer
17 March 2026
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2025
2025 2024
Note £'000 £'000
Revenue 3 124,659 125,268
Cost of goods sold (67,725) (69,816)
Gross profit 56,934 55,452
Operating expenses (49,579) (46,829)
Operating profit 7,355 8,623
Analysed as:
Adjusted EBITDA(1) 15,819 16,687
Depreciation 9 (2,122) (2,206)
Amortisation 8 (6,011) (6,316)
Share-based payment (charge)/credit (331) 458
Operating profit 7,355 8,623
Finance expense (477) (545)
Profit before taxation 6,878 8,078
Income tax expense 4 (1,500) (1,712)
Profit for the year 5,378 6,366
Basic earnings per share 5 3.45p 3.83p
Diluted earnings per share 5 3.44p 3.82p
Note 1 Adjusted EBITDA, which is defined as operating profit before
depreciation, amortisation and share-based payment (charge)/credit, is a
non-GAAP metric used by management and is not an IFRS disclosure.
All results derive from continuing operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2025
2025 2024
£'000 £'000
Profit for the year 5,378 6,366
Items that may be subsequently reclassified to profit and loss
Exchange differences on translation of foreign operations (2,554) 504
Current tax on exchange differences on translation of foreign operations (note
4)
304 -
Other comprehensive (expense)/income for the year (2,250) 504
Total comprehensive income for the year 3,128 6,870
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2025
2025 2024
Note £'000 £'000
Assets
Non-current assets
Intangible assets 8 58,724 61,758
Property, plant and equipment 9 5,503 7,123
Deferred tax asset - 285
Total non-current assets 64,227 69,166
Current assets
Inventories 11,141 12,095
Trade and other receivables 32,784 30,651
Cash and cash equivalents 9,637 16,459
Current tax asset 738 49
Total current assets 54,300 59,254
Total assets 118,527 128,420
Liabilities
Non-current liabilities
Lease liability 10 3,457 5,185
Deferred tax liability 2,611 1,645
Total non-current liabilities 6,068 6,830
Current liabilities
Lease liability 10 1,727 1,652
Trade and other payables 28,505 28,562
Total current liabilities 30,232 30,214
Total liabilities 36,300 37,044
Net assets 82,227 91,376
Equity
Share capital 11 1,487 1,648
Share premium 11 78,451 78,451
Own share reserve (647) (251)
Capital reserve 313 152
Merger reserve (103,581) (103,581)
Translation reserve (2,951) (701)
Share-based payment reserve 1,370 1,442
Retained earnings 107,785 114,216
Total equity 82,227 91,376
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2025
Share capital Share premium Own share reserve Share-based payment reserve Retained earnings Total equity
Capital reserve Merger reserve Translation reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2024 1,675 78,451 (227) 125 (103,581) (1,205) 2,005 111,225 88,468
Profit for the year - - - - - - - 6,366 6,366
Other comprehensive income for the year - - - - - 504 - - 504
Total comprehensive income - - - - - 504 - 6,366 6,870
Dividends paid (note 7) - - - - - - - (2,005) (2,005)
Purchase of own shares (note 11) (27) - - 27 - - - (1,416) (1,416)
Purchase of own shares by EBT - - (109) - - - - - (109)
Employee share schemes - value of employee services - - 85 - - - (563) 46 (432)
Total transactions with owners recognised in equity (27) - (24) 27 - - (563) (3,375) (3,962)
At 31 December 2024 1,648 78,451 (251) 152 (103,581) (701) 1,442 114,216 91,376
Profit for the year - - - - - - - 5,378 5,378
Other comprehensive expense for the year - - - - - (2,250) - - (2,250)
Total comprehensive (expense)/income - - - - - (2,250) - 5,378 3,128
Dividends paid (note 7) - - - - - - - (2,963) (2,963)
Purchase of own shares (note 11) (161) - - 161 - - - (9,042) (9,042)
Purchase of own shares by EBT (note 11) - - (598) - - - - - (598)
Employee share schemes - value of employee services - - 202 - - - (111) 196 287
Deferred tax on employee share schemes (note 4) - - - - - - 39 - 39
Total transactions with owners recognised in equity (161) - (396) 161 - - (72) (11,809) (12,277)
At 31 December 2025 1,487 78,451 (647) 313 (103,581) (2,951) 1,370 107,785 82,227
The Group has an Employee Benefit Trust (EBT) to administer share plans and to
acquire shares, using funds contributed by the Group, to meet commitments to
employee share schemes. At 31 December 2025, the EBT held 1,346,208 shares
(2024: 453,187).
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2025
2025 2024
Note £'000 £'000
Profit before taxation 6,878 8,078
Adjustments for:
Depreciation 9 2,122 2,206
Amortisation 8 6,011 6,316
Share-based payment charge/(credit) 331 (458)
Finance expense 477 545
Cash flows from operating activities before changes in working capital 15,819 16,687
Change in inventories 867 (285)
Change in trade and other receivables (2,152) (635)
Change in trade and other payables (451) (293)
Cash flows from operating activities 14,083 15,474
Income taxes paid (822) (2,655)
Net cash flows from operating activities 13,261 12,819
Cash flows from investing activities
Purchase of property, plant and equipment 9 (390) (203)
Purchase of intangible assets 8 (4,498) (6,559)
Net cash flows used in investing activities (4,888) (6,762)
Cash flows from financing activities
Lease payments - capital (1,669) (1,702)
Lease payments - interest (298) (357)
Interest paid (66) (86)
Dividends paid 7 (2,963) (2,005)
Share-based payments - cash-settled - (7)
Purchase of own shares 11 (9,042) (1,416)
Purchase of own shares by EBT 11 (598) (109)
Net cash flows used in financing activities (14,636) (5,682)
Net cash flows (6,263) 375
Cash and cash equivalents at beginning of year 16,459 15,898
Effects of exchange rate changes (559) 186
Cash and cash equivalents at end of year 9,637 16,459
NOTES
1. GENERAL INFORMATION
The principal activity of The Pebble Group plc (the "Company") is that of a
holding company and the principal activity of the Company and its subsidiaries
(the "Group") is the sale of technology solutions, products and related
services to the promotional merchandise industry. The Group has two segments:
Brand Addition; and Facilisgroup. For Brand Addition, this is the sale of
promotional products internationally, to many of the world's best-known
brands. For Facilisgroup, this is the provision of digital technology,
consolidated buying power, and community learning and networking events to SME
promotional product distributors in North America, its Partners, through
subscription-based services.
The Company was incorporated on 27 September 2019 in the United Kingdom and is
a public company limited by shares registered in England and Wales. The
registered office of the Company is Broadway House, Trafford Wharf Road,
Trafford Park, Manchester, England M17 1DD. The Company registration number is
12231361.
Forward-looking statements
Certain statements in this report are forward looking with respect to the
operations, strategy, performance, financial condition and growth
opportunities of the Group. The terms "expect", "anticipate", "should be",
"will be", "is likely to", and similar expressions, identify forward-looking
statements. Although the Board believes that the expectations reflected in
these forward-looking statements are reasonable, by their nature these
statements are based on assumptions and are subject to a number of risks and
uncertainties. Actual events could differ materially from those expressed or
implied by these forward-looking statements. Factors which may cause future
outcomes to differ from those foreseen in forward-looking statements include,
without limitation: general economic conditions and business conditions in the
Group's markets, customers' expectations and behaviours, supply chain
developments, technology changes, the actions of competitors, exchange rate
fluctuations, and legislative, fiscal and regulatory developments. Information
contained in these financial statements relating to the Group should not be
relied upon as a guide to future performance.
Audited preliminary or annual results announcements
The financial information for the year ended 31 December 2025 and the year
ended 31 December 2024 does not constitute the Company's statutory accounts
for those years. Statutory accounts for the year ended 31 December 2024 have
been delivered to the Registrar of Companies. The statutory accounts for the
year ended 31 December 2025 will be delivered to the Registrar of Companies
following the Company's Annual General Meeting. The auditors' report issued by
BDO LLP on the accounts for the years ended 31 December 2025 and 31 December
2024 were unqualified, did not draw attention to any matters by way of
emphasis, and did not contain a statement under 498(2) or 498(3) of the
Companies Act 2006.
Alternative performance measures
Throughout this report, we refer to a number of alternative performance
measures (APMs). APMs are used internally by management to assess the
operating performance of the Group. These are non-GAAP measures and so other
entities may not calculate these measures in the same way and hence are not
directly comparable. The APMs that are not recognised under UK-adopted
International Accounting Standards are:
● Adjusted EBITDA;
● Adjusted operating profit;
● Adjusted profit before tax;
● Adjusted earnings; and
● Adjusted earnings per share (EPS) (note 5).
A reconciliation of the APMs can be found in note 6.
The Board considers that the above APMs provide useful information for
stakeholders on the underlying trends and performance of the Group and
facilitate meaningful year-on-year comparisons.
Going concern
The Group meets its day-to-day working capital requirements through its own
cash balances and committed banking facilities. The Group refinanced its £10m
revolving credit facility in February 2025 for a four-year period to February
2029. In assessing the appropriateness of adopting the going concern basis in
the preparation of these financial statements, the Directors have prepared
cash flow forecasts and projections up to 31 December 2027. The Directors have
considered the principal risks and uncertainties with respect to their
assessment, none of which in the opinion of the Directors give rise to
specific risk to the going concern basis of the operating segments or Group.
The forecasts and projections, which the Directors consider to be prudent,
have been further sensitised by applying reductions to revenue growth and
margin, to consider a severe but plausible downside. Under both the base and
sensitised case, the Group is expected to have headroom against covenants,
which are based on interest cover and net leverage, and a sufficient level of
financial resources available through existing facilities when the future
funding requirements of the Group are compared with the level of committed
available facilities. In addition, the Directors have prepared a severe
downside scenario to determine the level of revenue decline required for the
Group to breach a covenant. The analysis demonstrates that revenue would need
to fall by 22% from forecast levels with no remedial action for this to occur.
Even in this extreme scenario, the Group would retain sufficient liquidity to
meet its obligations and continue operations beyond 31 December 2027.
Based on this, the Directors are satisfied that the Group has adequate
resources to continue in operational existence for at least 12 months from the
date of signing the financial statements. For this reason, they continue to
adopt the going concern basis in preparing the financial statements.
Material accounting policy information
The material accounting policies adopted in the preparation of these financial
statements are consistent with those adopted in the annual financial
statements for the year ended 31 December 2024, as described in those annual
financial statements.
2. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF
ESTIMATION UNCERTAINTY
In the preparation of the Group financial statements, the Directors, in
applying the accounting policies of the Group, make some judgements and
estimates that affect the reported amounts in the financial statements. The
areas requiring the use of judgement and estimates that may significantly
impact the financial statements are as follows:
Accounting estimates
Information about estimates and assumptions that may have the most significant
effect on recognition and measurement of assets, liabilities, income and
expenses is provided below. Actual results may be substantially different.
Goodwill impairment
The Group tests goodwill for impairment every year in accordance with the
relevant accounting policies. The recoverable amounts of cash-generating units
are determined by calculating value in use.
Goodwill relates to the various acquisitions made and amounts to £35,807,000
as at 31 December 2025 (2024: £36,015,000). Based on the forecasts prepared,
there is not considered to be a significant risk of material adjustment to the
carrying amount of the goodwill within the next 12 months.
Useful economic lives of intangible assets
The Directors have estimated the useful economic lives of the acquired
customer intangible assets to be 20 years based upon attrition rates and the
Directors' judgement. These lives are reviewed and updated annually. Based on
the forecasts prepared, there is not considered to be a significant risk of
material adjustment to the carrying amount of the intangible assets within the
next 12 months. No reasonable sensitivity performed in relation to the useful
economic lives assumption would result in a material change in the carrying
value of intangible assets.
In 2024, the Directors made the decision to align the useful lives of certain
acquired intangible assets with those that are internally generated. The
impact of this change is explained in note 8.
Share-based payment charge/credit
Fair values used in calculating the amount to be expensed as a share-based
payment is subject to a level of uncertainty. These fair values are calculated
by applying a valuation model, which is in itself judgemental, and takes into
account certain inherently uncertain assumptions. No reasonable sensitivity
performed in relation to the share-based payment assumptions would result in a
material change to the charge/credit in the consolidated income statement.
Accounting judgements
The following are the areas requiring the use of judgement that may
significantly impact the Group financial statements:
Capitalisation of internal development costs
Distinguishing the research and development phases of a new customised project
and determining whether the recognition requirements for the capitalisation of
development costs are met requires judgement. There is also some judgement
required in relation to the proportion of time capitalised for employees
working on the development of internally generated intangible assets. After
capitalisation, management monitors whether the recognition requirements
continue to be met and at what point amortisation should commence, in addition
to whether there are any indicators that capitalised costs may be impaired.
Capitalised development expenditure is analysed further in note 8.
3. SEGMENTAL ANALYSIS
The Chief Operating Decision Maker (CODM) has been identified as the Executive
Directors. The Directors have determined that the operating segments, based on
these financial statements, are:
● Brand Addition - sale of promotional products through complex services
provided under framework contracts on an international basis;
● Facilisgroup - provision of technology solutions, consolidated buying power
and community learning and networking events to SME promotional product
distributors in North America through subscription-based services; and
● Central operations - certain central activities and costs that are not
directly related to the activities of the operating segments.
Segment information about the above businesses is presented on the following
pages.
The Executive Directors assess the performance of the operating segments based
on Adjusted EBITDA and operating profit. Other information provided to the
Directors is measured in a manner consistent with that in the financial
statements. Inter-segment transactions are entered into under the normal
commercial terms and conditions that would also be available to unrelated
third parties. Segment assets exclude centrally held cash at bank and in hand.
Major customers
In 2025, there was one major customer that individually accounted for at least
10% of total revenues (2024: one). In 2025, the revenue relating to this
customer was £13,000,000 (2024: £13,787,000) and related to the Brand
Addition segment.
Analysis of revenue by geographical destination
2025 2024
£'000 £'000
United Kingdom 17,251 18,193
Continental Europe 39,426 41,944
North America 44,088 42,713
Rest of World 23,894 22,418
Total revenue 124,659 125,268
The geographical revenue information above is based on the location of the
customer.
Included within Rest of World is £17,141,000 of revenue from China (2024:
£18,250,000) and included within Continental Europe is £10,250,000 of
revenue from Germany (2024: £9,695,000). No other individual countries
represented more than 5% of total revenues and therefore are not considered by
management to be individually material.
All £17,157,000 of revenue related to the Facilisgroup segment is included
within North America (2024: £17,595,000).
All the above revenues are generated from contracts with customers and are
recognised at a point in time or over time as follows:
2025 2024
£'000 £'000
At a point in time 108,282 108,407
Over time 16,377 16,861
Total revenue 124,659 125,268
All £107,502,000 of revenue related to the Brand Addition segment is
recognised at a point in time (2024: £107,673,000).
All non-current assets of the Group reside in the UK, with the exception of
non-current assets with a net book value of £27,776,000 (2024: £31,248,000)
which were located in North America and £1,721,000 (2024: £2,091,000)
located in other foreign countries.
Income statement for the year ended 31 December 2025
Brand Addition Facilisgroup Central operations Total Group
£'000 £'000 £'000 £'000
Revenue 107,502 17,157 - 124,659
Cost of goods sold (67,725) - - (67,725)
Gross profit 39,777 17,157 - 56,934
Operating expenses (31,863) (14,726) (2,990) (49,579)
Operating profit/(loss) 7,914 2,431 (2,990) 7,355
Analysed as:
Adjusted EBITDA 11,380 7,261 (2,822) 15,819
Depreciation (1,539) (498) (85) (2,122)
Amortisation (1,891) (4,120) - (6,011)
Share-based payment charge (36) (212) (83) (331)
Operating profit/(loss) 7,914 2,431 (2,990) 7,355
Finance expense (244) (53) (180) (477)
Profit/(loss) before taxation 7,670 2,378 (3,170) 6,878
Income tax expense (957) (511) (32) (1,500)
Profit/(loss) for the year 6,713 1,867 (3,202) 5,378
Statement of financial position as at 31 December 2025
Brand Addition Facilisgroup Central operations Total Group
£'000 £'000 £'000 £'000
Assets
Non-current assets
Intangible assets 37,891 20,833 - 58,724
Property, plant and equipment 3,596 1,764 143 5,503
Total non-current assets 41,487 22,597 143 64,227
Current assets
Inventories 11,141 - - 11,141
Trade and other receivables 27,050 5,432 302 32,784
Cash and cash equivalents 8,626 903 108 9,637
Current tax asset 205 533 - 738
Total current assets 47,022 6,868 410 54,300
Total assets 88,509 29,465 553 118,527
Liabilities
Non-current liabilities
Lease liability 1,958 1,371 128 3,457
Deferred tax liability/(asset) 580 2,134 (103) 2,611
Total non-current liabilities 2,538 3,505 25 6,068
Current liabilities
Lease liability 1,426 296 5 1,727
Trade and other payables 25,788 2,016 701 28,505
Total current liabilities 27,214 2,312 706 30,232
Total liabilities 29,752 5,817 731 36,300
Net assets/(liabilities) 58,757 23,648 (178) 82,227
Income statement for the year ended 31 December 2024
Brand Addition Facilisgroup Central operations Total Group
£'000 £'000 £'000 £'000
Revenue 107,673 17,595 - 125,268
Cost of goods sold (69,816) - - (69,816)
Gross profit 37,857 17,595 - 55,452
Operating expenses (29,979) (14,125) (2,725) (46,829)
Operating profit/(loss) 7,878 3,470 (2,725) 8,623
Analysed as:
Adjusted EBITDA 10,771 8,760 (2,844) 16,687
Depreciation (1,612) (552) (42) (2,206)
Amortisation (1,499) (4,817) - (6,316)
Share-based payment credit 218 79 161 458
Operating profit/(loss) 7,878 3,470 (2,725) 8,623
Finance expense (292) (60) (193) (545)
Profit/(loss) before taxation 7,586 3,410 (2,918) 8,078
Income tax expense (1,094) (597) (21) (1,712)
Profit/(loss) for the year 6,492 2,813 (2,939) 6,366
Statement of financial position as at 31 December 2024
Brand Addition Facilisgroup Central operations Total Group
£'000 £'000 £'000 £'000
Assets
Non-current assets
Intangible assets 38,593 23,165 - 61,758
Property, plant and equipment 4,522 2,373 228 7,123
Deferred tax asset 187 - 98 285
Total non-current assets 43,302 25,538 326 69,166
Current assets
Inventories 12,095 - - 12,095
Trade and other receivables 24,649 5,726 276 30,651
Cash and cash equivalents 11,435 1,207 3,817 16,459
Current tax asset 10 39 - 49
Total current assets 48,189 6,972 4,093 59,254
Total assets 91,491 32,510 4,419 128,420
Liabilities
Non-current liabilities
Lease liability 3,269 1,788 128 5,185
Deferred tax liability - 1,645 - 1,645
Total non-current liabilities 3,269 3,433 128 6,830
Current liabilities
Lease liability 1,311 292 49 1,652
Trade and other payables 25,935 1,954 673 28,562
Total current liabilities 27,246 2,246 722 30,214
Total liabilities 30,515 5,679 850 37,044
Net assets 60,976 26,831 3,569 91,376
4. INCOME TAX EXPENSE
2025 2024
£'000 £'000
Current income tax
- UK corporation tax charge for the year 730 994
- Adjustments in respect of prior years (906) (170)
- Foreign tax 541 1,362
Total current income tax 365 2,186
Deferred tax
- Origination and reversal of temporary differences 572 (355)
- Adjustments in respect of prior years 563 (403)
- Changes in tax rates - 284
Total deferred tax 1,135 (474)
Total income tax expense 1,500 1,712
The expected corporation tax charge for the year is calculated at the UK
corporation tax rate of 25% (2024: 25%) on the profit before taxation for the
year. Taxation for other jurisdictions is calculated at the rates prevailing
in the respective jurisdictions in which the Group operates.
The charge for the year can be reconciled to the profit in the consolidated
income statement as follows:
2025 2024
Analysis of charge in year
£'000 £'000
Reconciliation of total tax charge:
Profit before taxation 6,878 8,078
Profit before taxation multiplied by the rate of corporation tax in the UK of 1,720 2,020
25% (2024: 25%)
Effects of:
Adjustments in respect of prior years (343) (573)
Non-deductible income (59) (64)
Differences in tax rates in overseas jurisdictions 182 47
Unrecognised for deferred tax - (2)
Impact of rate change on deferred tax - 284
Total income tax expense 1,500 1,712
Factors that may affect future tax charges
As a Group with worldwide operations, The Pebble Group plc is subject to
several factors that may affect future tax charges, principally the levels and
mix of profitability in different jurisdictions, transfer pricing regulations,
tax rates imposed and tax regime reforms.
Amounts recognised directly in equity
Taxation arising in the reporting period and not recognised in net profit or
loss or other comprehensive income but directly credited to equity:
2025 2024
£'000 £'000
Deferred tax: credit relating to employee share schemes - value of employee
services
(39) -
Taxation credited to other comprehensive income:
2025 2024
£'000 £'000
Current tax: credit relating to deductible foreign exchange losses (304) -
5. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the earnings attributable
to equity shareholders by the weighted average number of Ordinary Shares in
issue during the year. The difference between the opening number of Ordinary
Shares as at 1 January 2025 and the weighted average number of Ordinary Shares
in issue during the year is due to shares repurchased under the Group's share
buyback programme and tender offer transaction, as detailed in note 11.
For diluted earnings per share, the weighted average number of Ordinary Shares
in issue is adjusted to assume conversion of potentially dilutive Ordinary
Shares. The Company has potentially dilutive Ordinary Shares arising from
share options granted to employees.
Statutory EPS
2025 2024
Earnings (£'000)
Earnings for the purposes of basic and diluted earnings per share being 5,378 6,366
profit for the year attributable to equity shareholders
Number of shares
Weighted average number of shares for the purposes of basic earnings per share 156,079,283 166,216,248
Weighted average dilutive effects of conditional share awards 59,603 441,975
Weighted average number of shares for the purposes of diluted earnings per 156,138,886 166,658,223
share
Earnings per Ordinary Share (pence)
Basic earnings per Ordinary Share 3.45 3.83
Diluted earnings per Ordinary Share 3.44 3.82
Adjusted EPS
The calculation of adjusted earnings per share is based on the after-tax
adjusted profit after adding back certain costs as detailed in note 6.
Adjusted earnings per share figures are given to exclude the effects of
amortisation of acquired intangible assets and share-based payment
charge/(credit), all net of taxation, and are considered to show the
underlying performance of the Group.
2025 2024
Earnings (£'000)
Earnings for the purposes of basic and diluted adjusted earnings per share 6,019 7,693
being adjusted earnings (note 6)
Number of shares
Weighted average number of shares for the purposes of basic adjusted earnings 156,079,283 166,216,248
per share
Weighted average dilutive effects of conditional share awards 59,603 441,975
Weighted average number of shares for the purposes of diluted adjusted 156,138,886 166,658,223
earnings per share
Adjusted earnings per Ordinary Share (pence)
Basic adjusted earnings per Ordinary Share 3.86 4.63
Diluted adjusted earnings per Ordinary Share 3.85 4.62
6. ALTERNATIVE PERFORMANCE MEASURES (APMs)
Throughout the consolidated financial statements, we refer to a number of
APMs. A reconciliation of the APMs used are shown below.
Adjusted EBITDA
2025 2024
£'000 £'000
Operating profit 7,355 8,623
Add back/(deduct):
Depreciation 2,122 2,206
Amortisation 6,011 6,316
Share-based payment charge/(credit) 331 (458)
Adjusted EBITDA 15,819 16,687
Adjusted operating profit
2025 2024
£'000 £'000
Operating profit 7,355 8,623
Add back/(deduct):
Amortisation charge on acquired intangible assets (note 8) 523 2,113
Share-based payment charge/(credit) 331 (458)
Adjusted operating profit 8,209 10,278
Adjusted profit before tax
2025 2024
£'000 £'000
Profit before tax 6,878 8,078
Add back/(deduct):
Amortisation charge on acquired intangible assets (note 8) 523 2,113
Share-based payment charge/(credit) 331 (458)
Adjusted profit before tax 7,732 9,733
Adjusted earnings
2025 2024
£'000 £'000
Profit for the year attributable to equity shareholders 5,378 6,366
Add back/(deduct):
Amortisation charge on acquired intangible assets (note 8) 523 2,113
Share-based payment charge/(credit) 331 (458)
Tax effect of the above (213) (328)
Adjusted earnings 6,019 7,693
7. DIVIDENDS PAID AND PROPOSED
2025 2024
£'000 £'000
Declared and paid during the year
Final dividend of 1.85p (2024: 1.2p) per share proposed and paid during the
year relating to the previous year's results
2,963 2,005
Proposed for approval at AGM (not recognised as a liability at 31 December)
Final dividend for 2025 of 2.00p (2024: 1.85p) per share 3,000 2,963
As per the Trust Deed, the EBT has waived its entitlement to a
dividend on the shares held by the trust.
8. INTANGIBLE ASSETS
Goodwill Customer relationships Software and development costs Work in progress Total
£'000 £'000 £'000 £'000 £'000
Cost
At 1 January 2024 35,964 10,768 28,880 6,677 82,289
Exchange differences 51 164 (130) 81 166
Additions - - 479 6,080 6,559
Disposals - - (22) - (22)
Transfers - - 5,578 (5,578) -
At 31 December 2024 36,015 10,932 34,785 7,260 88,992
Exchange differences (208) (658) (1,223) (474) (2,563)
Additions - - 263 4,235 4,498
Disposals - - (1,947) - (1,947)
Transfers - - 5,967 (5,967) -
At 31 December 2025 35,807 10,274 37,845 5,054 88,980
Accumulated amortisation
At 1 January 2024 - 2,799 18,183 - 20,982
Exchange differences - 50 (92) - (42)
Charge for the year - 537 5,779 - 6,316
Disposals - - (22) - (22)
At 31 December 2024 - 3,386 23,848 - 27,234
Exchange differences - (207) (835) - (1,042)
Charge for the year - 523 5,488 - 6,011
Disposals - - (1,947) - (1,947)
At 31 December 2025 - 3,702 26,554 - 30,256
Net book value
At 31 December 2023 35,964 7,969 10,697 6,677 61,307
At 31 December 2024 36,015 7,546 10,937 7,260 61,758
At 31 December 2025 35,807 6,572 11,291 5,054 58,724
All additions were paid for in the year.
Staff costs of £3,474,000 (2024: £5,367,000) have been capitalised as
intangible assets. The net book value of internally generated assets is
£15,984,000 (2024: £16,797,000), which relates to all of the work in
progress balance and the remaining amount is within software and development
costs.
Individually material intangible assets held by the Group as at 31 December
2025 relate to the Facilisgroup technology platform with a net book value of
£7,668,000 (2024: £6,425,000) included within software and development costs
which had a remaining amortisation period of between 1 and 3 years (2024: 1
and 3 years) and £4,603,000 (2024: £7,062,000) included within work in
progress.
The amortisation charge for the year ended 31 December 2025 includes
£523,000 (2024: £2,113,000) in respect of acquired intangible assets. This
included a charge of £nil (2024: £950,000) which has been accelerated to
align the useful lives of certain acquired intangible assets with those that
are internally generated.
The remaining amortisation periods for customer relationships are between 11
and 13 years (2024: 12 and 14 years) and for software and development costs
are between 1 and 5 years (2024: 1 and 5 years).
The Group tests goodwill annually for impairment or more frequently if there
are indicators that goodwill might be impaired.
Having completed the impairment reviews at the date of transition and at each
subsequent balance sheet date, no impairments were identified.
9. PROPERTY, PLANT AND EQUIPMENT
Fixtures and fittings Computer hardware Right-of-use assets Total
£'000 £'000 £'000 £'000
Cost
At 1 January 2024 3,682 2,873 13,443 19,998
Exchange differences 14 (22) (46) (54)
Additions 65 138 859 1,062
Disposals (1) (103) (560) (664)
At 31 December 2024 3,760 2,886 13,696 20,342
Exchange differences (124) (84) (230) (438)
Additions 139 251 260 650
Disposals (67) (252) (181) (500)
At 31 December 2025 3,708 2,801 13,545 20,054
Accumulated depreciation
At 1 January 2024 2,837 1,644 7,211 11,692
Exchange differences 16 (15) (16) (15)
Charge for the year 259 462 1,485 2,206
Disposals (1) (103) (560) (664)
At 31 December 2024 3,111 1,988 8,120 13,219
Exchange differences (105) (63) (122) (290)
Charge for the year 232 372 1,518 2,122
Disposals (67) (252) (181) (500)
At 31 December 2025 3,171 2,045 9,335 14,551
Net book value
At 31 December 2023 845 1,229 6,232 8,306
At 31 December 2024 649 898 5,576 7,123
At 31 December 2025 537 756 4,210 5,503
All additions within fixtures and fittings and computer hardware, totaling
£390,000 (2024: £203,000), were paid for in the year.
Right-of-use assets - net book value 2025 2024
£'000 £'000
Leasehold property 3,723 5,112
Fixtures and fittings 431 393
Computer hardware 56 71
Total right-of-use assets - net book value 4,210 5,576
10. LEASES
Amounts recognised in the statement of financial position
The statement of financial position shows the following amounts
relating to leases:
Right-of-use assets
£'000
At 1 January 2024 6,232
Exchange differences (30)
New leases recognised in the year 859
Depreciation charge for the year (1,485)
At 31 December 2024 5,576
Exchange differences (108)
New leases recognised in the year 260
Depreciation charge for the year (1,518)
At 31 December 2025 4,210
These are included within property, plant and equipment in the
statement of financial position.
Lease liability 2025 2024
£'000 £'000
Not more than one year
Minimum lease payments 1,938 1,998
Interest element (211) (346)
Present value of minimum lease payments 1,727 1,652
Between one and five years
Minimum lease payments 3,552 5,046
Interest element (237) (340)
Present value of minimum lease payments 3,315 4,706
More than five years
Minimum lease payments 157 504
Interest element (15) (25)
Present value of minimum lease payments 142 479
This is analysed in the consolidated statement of financial
position as follows:
2025 2024
£'000 £'000
Current 1,727 1,652
Non-current 3,457 5,185
Total present value of minimum lease payments 5,184 6,837
11. SHARE CAPITAL
The authorised, issued and fully paid number of shares are set out
below.
Ordinary Shares Share capital Share premium
Number £ £
Ordinary Shares of 1p each:
At 1 January 2024 167,450,893 1,674,509 78,451,312
Purchase of own shares (2,674,539) (26,745) -
At 31 December 2024 164,776,354 1,647,764 78,451,312
Purchase of own shares (16,061,645) (160,616) -
At 31 December 2025 148,714,709 1,487,148 78,451,312
The Ordinary Shares have full voting, dividend and capital distribution
rights, including on winding up. They are non-redeemable.
In May 2024, the Group commenced a share buyback programme to repurchase up to
£5 million of its own shares. During the year, 5,405,908 Ordinary Shares with
a total nominal value of £54,059 were bought back by the Company for a total
consideration, including transaction costs, of £2,235,000, charged to
retained earnings (2024: 2,674,539 Ordinary Shares with a nominal value of
£26,745 for a total consideration, including transaction costs, of
£1,416,000). The Company subsequently cancelled these shares which resulted
in a reduction in share capital of £54,059 (2024: £26,745), with a
corresponding increase in the capital reserve. Details of the individual
transactions can be found in the RNS announcements section of the Company's
website. The share buyback programme concluded on 3 June 2025.
On 11 August 2025, the Group completed a tender offer to repurchase and cancel
10,655,737 of its Ordinary Shares with a total nominal value of £106,557 at a
price of 61 pence per Ordinary Share, pursuant to the terms and conditions set
forth in the offer documents. The total consideration, including transaction
costs associated with the tender offer, was £6,807,000. The Group
subsequently cancelled these shares which resulted in a reduction in share
capital of £106,557, with a corresponding increase in the capital reserve.
During the year, the EBT purchased a total of 1,257,126 Ordinary Shares at an
average price of £0.48 per share, which were used to satisfy the exercise of
364,105 LTIP options. The EBT did not sell any shares and the remaining
1,346,208 shares are held by the Trust, with a fair value of £585,600.
12. PRINCIPAL RISKS AND UNCERTAINTIES
The Board has identified the following risks as currently being the most
significant and specific to the Group's businesses:
● Breach of IT security or cyber-attack;
● Macroeconomic environment;
● Global supply chain disruptions;
● Reliance on IT systems;
● Share price performance, volatility and liquidity;
● Attracting and retaining key personnel;
● Interruption to warehouse operations;
● Concentrated client base;
● Technological change and artificial intelligence; and
● Climate change.
Full details of the above risks, together with details of the corresponding
mitigating measures and internal controls to address each risk, will be
provided in our 2025 Annual Report.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
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. END FR GPUBUWUPQPPQ
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Pebble
See all newsREG - Pebble Group (The) - AUDITED FULL YEAR RESULTS 2025
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