REG - Pebble Beach Sys Grp - Trading Update

Pebble Beach SystemsAnnouncement

25/01/2022 07:00

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RNS Number : 4391Z  Pebble Beach Systems Group PLC  25 January 2022

Pebble Beach Systems Group plc

 

Trading Update

 

 

Pebble Beach Systems Group plc (AIM: "PEB", "Pebble" or the "Group"), a
leading global software business specialising in playout automation and
content management solutions for the broadcast and streaming service markets,
is pleased to provide the following trading update for the year ended 31
December 2021.

The Group expects to report results ahead of market expectations for the full
year 2021, with revenue of approximately £10.6m (FY20: £8.4m), up 26%,
and adjusted* EBITDA of approximately £3.2m (FY20: £2.7m), up 19%. Orders
received in the full year were up 75% at £13.7m (FY20: £7.8m). This total
includes two large orders worth, in aggregate, £1.5m which were delayed from
2020 as a result of the impact of Covid and some delayed service contract
renewals from 2020. Excluding these, underlying order growth was circa 17%,
with H2 14% higher than H1. The improvement in orders received in H2 ensures
that the Group continues to have good revenue momentum into 2022. During the
second half of 2021, the business became a remote working organisation and
whilst this has caused some additional cost in the short term, other cost
savings related to restrictions imposed as a result of the pandemic, have
enabled the Group to maintain an adjusted EBITDA margin above 30%.

With a strong end to the year, the business delivered excellent operating cash
generation during FY2021, helping to reduce net debt further
to £5.9m at 31 December 2021 (FY20: £7.7m). Management expects the net
debt reduction trend to continue into 2022.

The Group has performed strongly through the Covid pandemic despite the
understandable delays in the investment decisions of our customers. The
Group's pipeline remains strong and we expect to build on the trusted market
position Pebble has established. We will seek to continue to increase our
investment in our technology through the development of new products and
solutions so as to support broadcasters as they transition from traditional
broadcast infrastructure to more flexible IP-based technologies.

The Board remains confident about the Group's future and looks forward to
providing a further update in our audited results for the year ended 31
December 2021, the release date for which will be announced in due course.

John Varney, Non-Executive Chairman, commented:

"The Board is delighted to see this excellent performance from Pebble for
2021. The results are a validation of the Group's new remote working model and
of the efforts by management to mitigate delays in the hardware supply chain
due to chip shortages, ensuring a particularly strong final quarter.

"The Board will now continue to seek ways to accelerate the required
investment in new technology solutions. These are needed to allow us to access
untapped geographic territories with innovative products that suit customer
needs in those markets."

 

*Adjusted EBITDA, a non-GAAP measure, is profit before depreciation, the
amortisation and impairment of goodwill and acquired intangibles, the
amortisation of capitalised development costs, non-recurring items and foreign
exchange gains and losses.

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed
in accordance with the company's obligations under Article 17 of MAR

.For further information please contact:

 Peter Mayhead- Chief Executive                     +44 (0) 75 55 59 36 02

 David Dewhurst - Chief Financial Officer

 finnCap (Nominated Adviser and Broker)

 Marc Milmo / Teddy Whiley - Corporate Finance      +44 (0) 207 220 0500

 Tim Redfern / Sunila de Silva - ECM

 

About Pebble Beach Systems

 

Pebble Beach Systems (trading as Pebble) is a world leader in designing and
delivering automation, integrated channel and virtualised playout solutions,
with scalable products designed for applications of all sizes. Founded in
2000, Pebble has commissioned systems in more than 70 countries, with proven
installations ranging from single up to over 150 channels in operation, and
around 2000 channels currently on air under the control of our automation
technology. An innovative, agile company, Pebble is focused on discovering its
customers' requirements and pain points, designing solutions which will
address these elegantly and efficiently, and delivering and supporting these
professionally and in accordance with its users' needs.

 

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