REG - Pebble Beach Sys Grp - Final Results
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RNS Number : 1018C Pebble Beach Systems Group PLC 28 April 2026
This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 ("MAR") as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement, the inside information is now considered to be in the
public domain for the purposes of MAR.
AIM: PEB
PEBBLE BEACH SYSTEMS GROUP PLC
("Pebble" or "the Company" or "the Group")
A leading global software provider of
specialist automation solutions for the broadcast and streaming markets.
Final Results for the year ended 31 December 2025
Strong Results and Improved Platform for Future Growth
KEY POINTS
Financial
Year ended 31 December 2025 2024 Change
Revenue £12.2m £11.5m +7%
Annual recurring revenue £6.6m £6.1m +8%
Adjusted EBITDA* £4.2m £3.3m +27%
Adjusted EBITDA margin 34% 29% +5%
Adjusted profit before tax £3.0m £1.1m +173%
Statutory profit before tax £2.2m (£1.3m) +267%
Adjusted basic earnings per share ** 2.7p 0.9p +200%
Statutory basic earnings per share 2.2p (1.1p) +300%
Cashflow from operations (excl. non-recurring items***) £4.0m £4.1m -5%
Annualised value of recurring revenue (ARR) £6.7m £6.3m +8%
Net debt (excl. IFRS 16 leases) (£1.9m) (£3.7m) -49%
l Significant improvement across key financial measures supported by:
- strategic decisions implemented in Q1;
- increased revenues and stronger margins; and
- robust base of growing annual recurring revenue.
l Group revenue up 7% to £12.2m (2024: £11.5m)
l Recurring revenue 8% higher at £6.6m (2024: £6.1m):
- comprises c.64% of Group revenue excluding third-party hardware (2024: 61%);
- provides good revenue visibility;
- annualised value of recurring revenue at year-end up 8% at £6.7m (2024:
£6.3m).
l Adj. EBITDA up 27% to £4.2m (2024: £3.3m) - reflected good growth in gross
profit and reduced cost base.
l Adj. basic EPS up 200% to 2.7p (2024: 0.9p) - result of strong adjusted PBT
growth and a substantial reduction in net finance charges.
l Strong cash generation; 94% of adjusted EBITDA converted to cash (2024: 126%).
l Net debt (excluding IFRS 16 leases) significantly reduced - £1.9m at year-end
(31 December 2024: £3.7m):
- £1.0m of debt repaid, in line with strategic focus on continued reduction of
the Group's debt; and
- on track to achieve net cash during FY 2026.
OPERATIONAL
l Strategic actions taken in Q1 to refocus R&D direction and reduce cost
base:
- annualised cash savings of £2.0m achieved; and
- Internet Protocol based R&D reduced.
l Total new orders (from existing and new customers) up 2% to £13.9m (2024:
£13.6m):
- project orders up 25% to £6.4m (restated **** 2024: £5.1m), with good
demand from streaming market;
- support and maintenance orders (also known as SLAs) of £7.5m (restated ****
2024: £8.5m) with £0.9m of renewals immediately after year-end.
l New customers included:
- global streaming platform broadcasting live events, with 1-year support and
maintenance agreement;
- major US sport rights holder, with 1-year support and maintenance agreement;
and
- global streaming platform introducing live sporting events, with 5-year
support and maintenance agreement.
PROSPECTS
l Trading in Q1 2026 has been encouraging and the Board believes that Pebble is
well-positioned to achieve its objectives for FY26 and beyond
Tom Crawford, newly appointed Non-executive Chairman of Pebble Beach Systems
Group plc, said,
"Pebble has delivered a strong performance, which reflects a combination of
factors - the strategic actions taken in the first quarter of the year, higher
revenue and margins, and focus on our growing base of recurring income.
"The Company has a firm platform from which to go forward and we expect the
business to move into a net cash position in 2026. The balance sheet should
continue to strengthen thereafter given the highly cash generative nature of
the business, and this opens up further opportunities for us. Notwithstanding
the current economic uncertainties arising from the situation in the Middle
East, we expect Pebble to continue to progress and believe there are good
prospects for ongoing growth and development over the medium term."
Notes
*Adjusted EBITDA is defined as operating profit or loss before depreciation,
amortisation and impairment of intangibles, amortisation and impairment of
capitalised development costs, share based payment expense or credit,
non-recurring items and exchange gains or losses charged to the income
statement.
**Adjusted basic earnings per share is calculated on the same basis as basic
earnings per share except for the adding back of the after-tax effect of the
adjustments for amortisation and impairment of acquired intangibles, share
based payment expense or credit, non-recurring items and exchange gain or
losses
***see note 5
**** The comparative figures for FY24 project have been restated to align them
with FY25 where the value of the initial support and maintenance agreement
("SLA") has been excluded from the total value of new project orders and
instead accounted for within the total value of support and maintenance
agreements, which includes renewals and extensions.
For further information please contact:
Pebble Beach Systems Group plc T: c/o KTZ Communications
Peter Mayhead - CEO
Cavendish Capital Markets Limited (Nominated Adviser and Broker) T: 020 7220 0500
Marc Milmo, Teddy Whiley - Corporate Finance
Sunila de Silva - ECM
KTZ Communications T: 020 3178 6378
Katie Tzouliadis, Robert Morton
About Pebble Beach Systems Group plc
(www.pebbleplc.com)
Pebble Beach Systems Group plc (trading as Pebble) is a leading software
provider of specialist automation solutions for the broadcast and streaming
markets globally. Founded in 2000, Pebble's playout and integrated channel
technology is used by international, national, regional and specialised
broadcasters in over 60 countries, over 1,000 channels currently on air under
the control of the Company's automation technology. Its product offering is
widely considered as 'best of breed'.
NON-EXECUTIVE CHairman AND CHIEF EXECUTIVE's Report
INTRODUCTION
Pebble's results for the year show a significant improvement after the
challenges of 2024. They are also ahead of original market expectations, as
outlined in the trading update issued on 28 January 2026, with revenue up by
7% to £12.2m (2024: £11.5m) and adjusted profit before tax up by 2.7x to
£3.0m (2024: £1.1m). On a reported basis, the Company moved into profit,
with a profit before tax of £2.2m compared to a loss before tax of £1.3m in
2024. Our close focus on debt reduction, helped by the strongly cash
generative nature of the business, resulted in a 49% decrease in net debt
(excluding IFRS 16 leases) to £1.9m at the year-end (31 December 2024:
£3.7m). The Company remains on track to move into a net cash position during
the course of this year.
These results are very encouraging and reflect three main factors; the
benefits of the strategic decisions implemented in the first quarter of 2025,
increased new orders and the Company's very robust and rising base of
recurring income. New orders, from existing and new customers, include both
project orders and recurring support and maintenance (also referred to as
SLAs) agreements. The strategic actions taken refocused the Company's research
and development priorities and reduced costs, resulting in the maintenance of
strong cashflow from operations (excluding non-recurring items) of £4.0m
(2024: £4.1m).
We have entered 2026 in a significantly improved financial shape, and trading
in the first quarter of the new financial year has been encouraging. The
Board's attention remains on increasing new orders from both new and existing
customers, driving margins and profitability, with particular focus on
building recurring revenues. We are well placed to continue to make good
progress and to consider further options for growth. We view prospects
positively.
Financial OVERVIEW
Group revenue for the 12 months to 31 December 2025 increased by 7% to £12.2
million (2024: £11.5 million). Recurring revenue, derived almost entirely
from support and maintenance contracts (SLAs), grew by 8% to £6.6 million
(2024: £6.1 million), with the increase reflecting price rises as well as
additional new agreements and renewals/extensions. Recurring revenue accounted
for 64% of total revenues excluding third-party hardware revenue (2024: 61%
excluding third-party hardware) and provides good revenue visibility.
Third-party hardware revenue is excluded from the percentage of recurring
revenue as a proportion of total revenues in order to provide a better
understanding of the Company's own revenue streams.
We secured a total of £13.9 million of new orders over the year, a 2%
increase on the prior year (2024 restated: £13.6 million). Approximately
£6.4 million of this total was new project orders (2024 restated: £5.1
million), either from new customers or from the existing customer base.
Support and maintenance orders (comprising new orders, extensions and
renewals) accounted for the balance, and amounted to £7.5 million (2024
restated: £8.5 million). Immediately following the year-end, a further £0.9
million of support and maintenance contracts (all renewals/extensions) were
signed. The most important and valuable revenue of support and maintenance
contracts remain a very reliable and visible income stream. This reflects both
the typically very high level of annual renewals and the multi-year term of
many agreements.
Growth in higher margin recurring revenue helped to drive an 8% increase in
gross profit to £9.5 million (2024: £8.8 million), and gross margin improved
to 78% (2024: 77%). Adjusted EBITDA rose by 27% to £4.2 million (2024:
£3.3 million), and the adjusted EBITDA margin increased significantly to 34%
(2024: 29%), principally due to portfolio focus and cost reductions.
During the year the Company incurred non-recurring costs of £0.8 million as
part of the strategic restructure undertaken in Q1.
The Company generated an operating profit of £2.6 million, compared to a loss
in the prior year (2024: loss of £0.8 million, which included the one-off
£2.7 million impairment charge).
R&D expenditure as a proportion of revenue reduced to 19.5% (2024: 24.3%)
in line with the strategic decisions taken to scale back the development of
Internet Protocol (IP) only technology, given soft market uptake. As a result,
a lower level of development cost was capitalised and amortised in the year,
at £0.9 million and £0.6 million respectively (2024: £2.2 million
capitalised and £0.8 million amortised, excluding the impact of the one-off
intangible asset impairment review).
Net finance costs decreased by 24% in 2025 reflecting the Group's repayment of
£1.0 million of its term loan and a reduction in interest rates to 8.47%
(2024: 9.77%).
Adjusted profit before tax (which excludes share-based expenses or credits,
foreign exchange losses, non-recurring items and the impairment of
intangibles) increased significantly to £3.0 million (2024: £1.1 million)
and, similarly, adjusted earnings per share rose to 2.7p (2024: 0.9p). On a
reported basis, the Company moved into profit, with profit before tax of £2.2
million (2024: loss before tax of £1.3 million) and reported earnings per
share of 2.2p (2024: loss of 1.1p).
Cash Flow and Balance Sheet
In April 2026, an extension to the existing loan facility was agreed with our
bankers Santander, maintaining the Company's £3.6 million loan facility until
28 April 2028. As the loan agreement was not signed until April 2026, it is
classified as a post balance sheet event, and in line with IAS 1, accounting
treatment requires us to treat the full value of the loan as a current
liability. However, it should be noted that this extension agreement has a
repayment schedule of £1.0 million per annum, in line with the previous loan
agreement.
Cash generated from operations was strong although lower than the prior year,
with 94% of adjusted EBITDA converted to cash (2024: 126%), enabling us to
continue to reduce debt levels significantly. The difference between the two
years is accounted for by delayed receipts for support and maintenance (SLA)
renewals/extensions. The Company closed the year with net debt (excluding IFRS
16 leases) down by 49% or £1.8 million to £1.9 million (31 December 2024:
£3.7 million), with gross bank debt as at 31 December 2025 reduced to £3.6
million (31 December 2024: £4.5 million) and cash balances higher at £1.6
million (31 December 2024: £0.8 million).
OPERATIONAL OVERVIEW
We are very encouraged by the increase in new project orders booked, which was
up by 25% year-on-year to £6.4m (2024: £5.1m). The existing customer base
generated some 40% of this revenue, with the balance from new clients, secured
mostly via our partner network.
Completed projects in the year included a new playout and integrated channel
system for a national broadcaster in the Nordics. Our solution is supporting
28 channels for this existing customer, each channel broadcasting in multiple
languages with highly complex workflows and the majority broadcasting live
events. In a second phase of work for this customer in 2026, we will be
supporting a move to a new location. We also completed the installation of
our 'Pebble Playout in a Box' solution for a private broadcaster operating in
Dubai, for use across six channels. The work was completed to a very tight
deadline to meet a sports programme series. A new customer, a cable and
satellite broadcaster based in Asia, required a new main playout and
integration channel system, with multichannel disaster recovery system. It
operates eight production channels and from engineering start to 'go-live',
the project was completed over approximately eight months.
It is worth noting that of the eight new customers we added this year, two
were streaming companies. Our advanced workflow automation technology has
relevance in two critical areas for the streaming market, the incorporation of
advertising within streaming companies' content and the broadcasting of live
events. With streaming companies' models changing in this direction, we are
optimistic of further opportunities for us. The new contract win, announced on
16 February 2026, with a Tier 1 US streaming company was driven by this new
customer's move into live sports programming. Worth an initial £1.3 million
over its five-year term, it was secured after a rigorous review process,
driven by the customer's desire to adopt a highly configurable,
'best-of-breed' solution. The win will be a valuable reference customer for us
and is another clear demonstration of Pebble's capability in live sports
broadcasting. We expect the new relationship to deepen and grow over time.
We were delighted to recognise our long-standing customers and sales partners
over 2025 as part of our own 25(th) anniversary. We used the leading industry
trade shows and exhibitions, including BroadcastAsia (BCA) in Singapore,
CABSAT in Dubai, and the International Broadcasting Convention (IBC) in the
Netherlands, to present over 50 dedicated awards. The awards recognised five,
10, 15 and 20+ years of relationships, reflecting the depth and breadth of the
Company's connections. There was a highly positive reaction to this initiative
from our customers and partners.
We were also very pleased to receive the Gold Award (Playout Category) at the
Digital Media World Awards 2025, which highlighted the reliability and
feature-rich nature of our solution. We also won 'Best in Broadcast Playout'
for 'Pebble Playout in a Box' at the BroadcastPro Middle East Awards and were
delighted to be shortlisted as a Finalist for the 2025 ASBU BroadcastPro
Middle East Innovative Project of the Year Award. This was for our
collaboration with stc tv, the entertainment streaming service offered by STC
Group across a number of countries in the region.
As previously reported, at the beginning of the year, we refocused the
Company's research and development priorities and took the decision to scale
back Internet Protocol native development. This was in light of slow market
demand towards the full adoption of IP infrastructure and continuing
preference for on-premises solutions or hybrid delivery models. The result is
that we have freed up resource, reduced costs significantly and our R&D
has been refocused on areas of greatest customer value. As previously
reported, PRIMA, the new software platform we launched in April 2024 to
support the transition to a cloud-based operating model, is no longer a core
focus. However, importantly we have integrated its key benefits into our
existing platform, which is capable of supporting all delivery models,
on-premise, cloud-based and hybrid. Our reorganised R&D resource
provides for clear accountability, enhanced efficiency, and faster delivery.
In the last six months we worked on developing an integrated AI and
intelligent automation capabilities framework. Our core playout solution
requires frame-accurate precision and is less suitable to AI but in mid-April
2026, we presented our AI integration vision at the National Association of
Broadcasters (NAB) Show in Las Vegas. This is the world's largest annual
convention for professionals in media, entertainment and technology, and we
were encouraged by initial market reaction. We will continue to integrate AI
tools into our platform and are well-positioned in this area.
Our relationships with our sales partners are long-standing and remain strong.
As well as being the principal conduit of new business, they bring local
market knowledge, and we are encouraged by the potential new customers
relationships in the pipeline.
BOARD CHANGES
On 1 December 2025, Non-executive Chairman, John Varney, retired from the
Company after fourteen years of service, almost nine of which were as
Chairman. On behalf of the Board, we would like to place on record our thanks
to John for his significant contribution over many years. John's guidance and
counsel were valued and much appreciated. John's successor is Tom Crawford,
who joined the Board as Non-executive Chairman on 1 December 2025.
Tom has over 25 years' experience with publicly quoted companies, especially
software businesses. He has a strong track record of building and growing
international product-based software and services companies, both organically
and through acquisition. He was previously Chief Executive Officer of Aptitude
Software Group Plc, the listed global financial management software company,
and led its successful expansion into North America and Asia Pacific, as well
as into new market verticals. He was also previously Chairman of Attraqt
Group, the AIM-quoted SaaS ecommerce solutions provider and Chairman of
AIM-quoted K3 Business Technology Group, which provided business-critical
software solutions. He is currently Chairman of Made With Intent, the
real-time AI-driven ecommerce start-up.
After the reporting period, on 31 March 2026, Chris Errington, who represented
Pebble's largest shareholder, Kestrel Partners LLP ("Kestrel"), on the Board,
retired as a partner of Kestrel and therefore also stepped down as a
Non-executive Director of Pebble on that date. The Board extends its thanks to
Chris for his valuable contribution to the Company over the past five years.
In place of Chris, on 31 March 2026, Oliver Scott was appointed to the Board
as a Non-executive Director, becoming Kestrel's new representative. Oliver
also succeeded Chris as Chairman of Pebble's Remuneration Committee. Oliver is
a Managing Partner of Kestrel.
DIVIDEND
The Company is currently unable to make distributions to shareholders. This is
a result of historic accumulated losses on its retained profit and loss
account within total equity. However, the Board believes it is now
appropriate to commence the necessary legal processes to create distributable
reserves through a reorganisation of the Company's existing reserves. This
will place the Company in a position to start dividend distribution when
appropriate. The proposed reorganisation of reserves will require shareholder
approval at a general meeting and court sanction. We will update shareholders
further in due course.
SUMMARY AND Prospects
The business made good progress over 2025. The actions we took to refocus our
growth plans provide a firm base for further profitable, higher margin growth.
The Company's model is delivering increasingly recurring revenues and is
highly cash generative and we remain on track to achieve a key objective of
moving into a net cash position in 2026, with the balance sheet expected to
continue to strengthen thereafter.
Trading in the first quarter of the current financial year has started in line
with expectations and the sales pipeline has encouraging opportunities in our
core marketplace of international, national, regional and specialised
broadcasters. We are also seeing more opportunities with streaming companies.
As they shift to growth strategies, supported by advertising, and use live
sports/events to attract subscribers, playout technology, like ours, becomes
relevant.
While there are currently general economic uncertainties, reflecting the
situation in the Middle East, we believe that the Company is well-positioned
to make good progress this year and remain confident of prospects for Pebble
to grow and develop over the medium term.
Tom Crawford Peter Mayhead
Non-executive Chairman Chief Executive
27 April 2026
consolidated STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED 31 DECEMBER 2025
Continuing operations Note 2025 2024
£000 £000
Revenue 4 12,231 11,453
Cost of sales (2,753) (2,647)
Gross profit 9,478 8,806
Sales and marketing expenses (2,169) (2,809)
Research and development expenses (2,119) (4,131)
Administrative expenses (2,610) (2,648)
Operating profit/(loss) 5 2,580 (782)
Operating profit/(loss) is analysed as:
Adjusted EBITDA 4,162 3,276
Non-recurring items 5 (776) (229)
Share based payment (expense)/credit (44) 39
Exchange losses charged to the income statement 48 (108)
Impairment of intangibles - (2,741)
Earnings before interest, tax, depreciation and amortisation (EBITDA) 3,390 237
Depreciation (167) (189)
Amortisation of capitalised development costs (643) (830)
Operating profit/(loss) 5 2,580 (782)
Finance costs (398) (521)
Profit/(loss) before tax 2,182 (1,303)
Tax 6 524 (5)
Net profit/(loss) for the year 2,706 (1,308)
Earnings per share from continuing operations attributable to the parent
during the year
Basic earnings per share
From continuing operations and profit/(loss) for the year 7 2.2p (1.1p)
Diluted earnings per share
From continuing operations and profit/(loss) for the year 7 2.0p (1.1p)
consolidated statement of comprehensive income
FOR THE YEAR ENDED 31 DECEMBER 2025
2025 2024
£000 £000
Profit/(loss) for the financial year 2,706 (1,308)
Other comprehensive income - items that may be reclassified subsequently to
profit or loss:
Exchange difference on translation of overseas operations
- continuing operations (3) -
Total comprehensive income/(loss) for the financial year 2,703 (1,308)
consolidated statement of changes in shareholders' equity
FOR THE YEAR ENDED 31 DECEMBER 2025
Ordinary Share Capital Merger Translation Accumulated Total
shares premium redemption reserve reserve losses Equity
£000 £000 reserve £000 £000 £000 £000
£000
At 1 January 2024 3,115 6,800 617 29,778 (172) (39,285) 853
Loss for the period - - - - - (1,308) (1,308)
Total comprehensive income for the period - - - - - (1,308) (1,308)
Transactions with owners
Share based payments - - - - - (39) (39)
Total transactions with owners - - - - - (39) (39)
Effect of capital reductions - - - (27,896) - 27,896 -
At 31 December 2024 3,115 6,800 617 1,882 (172) (12,736) (494)
At 1 January 2025 3,115 6,800 617 1,882 (172) (12,736) (494)
Profit for the year - - - - - 2,706 2,706
Other comprehensive income - - - - (3) - (3)
Total comprehensive income for the period (3) 2,706 2,703
Transactions with owners
Share based payments - - - - - 44 44
Unclaimed dividends forfeited - - - - - 151 151
Total transactions with owners - - - - - 195 195
Exchange differences on translation of overseas operations - - - - (95) - (95)
At 31 December 2025 3,115 6,800 617 1,882 (270) (9,835) 2,309
consolidated statement of financial position
AS AT 31 DECEMBER 2025
Note 2025 2024
£000 £000
Assets
Non-current assets
Intangible assets 8 6,031 5,765
Property, plant and equipment 232 410
Deferred tax assets 540 -
Other non-current assets 12 12
Total non-current assets 6,815 6,187
Current assets
Inventories 314 411
Trade and other receivables 4,171 4,110
Cash and cash equivalents 1,616 840
Total current assets 6,101 5,361
Liabilities
Current liabilities
Financial liabilities - borrowings 3,550 1,000
Trade and other payables 6,853 7,099
Lease liabilities - current 62 68
Total current liabilities 10,465 8,167
Net current liabilities (4,364) (2,806)
Non-current liabilities
Financial liabilities - borrowings - 3,550
Other payables - non-current 106 199
Lease liabilities - non-current 36 126
Total non-current liabilities 142 3,875
Net (liabilities)/assets 2,309 (494)
Equity attributable to owners of the parent
Ordinary shares 3,115 3,115
Share premium 6,800 6,800
Capital redemption reserve 617 617
Merger reserve 1,882 1,882
Translation reserve (270) (172)
Accumulated losses (9,835) (12,736)
Total (deficit)/surplus 2,309 (494)
consolidated statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER 2025
Note 2025 2024
£000 £000
Cash flows from operating activities
Cash generated from operations 9 3,151 4,128
Interest paid (398) (520)
Taxation paid 17 (5)
Net cash generated from operating activities 2,770 3,603
Cash flows from investing activities
Purchase of property, plant and equipment (9) (170)
Expenditure on capitalised development costs (909) (2,229)
Net cash used in investing activities (918) (2,399)
Cash flow from financing activities
Repayment of borrowings (1,000) (1,000)
Principal elements of lease payments (67) (69)
Termination of lease payment (15) -
Net cash used in financing activities (1,082) (1,069)
Net increase in cash and cash equivalents 770 135
Effect of foreign exchange rate changes 6 (91)
Cash and cash equivalents at 1 January 840 796
Cash and cash equivalents at 31 December 1,616 840
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
for the year ended 31 December 2025
1. GENERAL INFORMATION
Pebble Beach Systems Group plc ("the Company") and its subsidiaries (together
"the Group") is a leading global software business specialising in playout
automation and content management solutions for the broadcast and streaming
markets.
The Group employed over 50 people worldwide.
The Company is listed on the AIM market of the London Stock Exchange (AIM:
PEB). For further information, visit IR Overview - Pebble Beach
(https://pebbleplc.com/)
The Company is incorporated and domiciled in the UK. The address of its
registered office is Unit 1, First Quarter, Blenheim Road, Epsom, Surrey, KT19
9QN.
The registered number of the Company is 04082188.
This results announcement was approved for issue at close of business on 27
April 2026.
2. BASIS OF PREPARATION
The financial information contained in these condensed financial statements
does not constitute the Group's statutory accounts within the meaning of the
Companies Act 2006.
Statutory accounts for the year ended 31 December 2025 and 31 December 2024
have been reported on by S&W Partners Audit Limited (formerly CLA Evelyn
Partners Limited) with an unmodified audit opinion and did not include
references to any matters to which the auditors drew attention by way of
emphasis and did not contain a statement under Section 498(2) or (3) of the
Companies Act 2006.
Whilst the financial information included in this Annual Financial Results
announcement has been computed in accordance with UK-adopted international
accounting standards, this announcement, due to its condensed nature, does not
itself contain sufficient information to comply with UK-adopted international
accounting standards.
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, prepared under UK-adopted international accounting standards,
will be available on the Group's website: https://www.pebbleplc.com and will
be delivered to the Registrar in due course. The Group's principal accounting
policies as set out in the 2025 statutory accounts have been applied
consistently in all material respects.
3. GOING CONCERN
The Directors are required to assess the Company's and the Group's ability to
continue to trade as a going concern.
At 31 December 2025, the Group's net debt (excluding IFRS 16 leases) was £1.9
million, comprising cash of £1.6 million and the term loan from Santander of
£3.6 million.
We enjoy a close relationship with our bank and have regular review meetings
with them. In April 2026, we agreed an extension to the existing loan through
to 28 April 2028, maintaining the £3.6 million loan facility at the same
level of commitment, with repayment levels of £1.0 million per annum
consistent with previous years and appropriate financial covenants. There have
been no breaches in financial covenants to date and no breaches are
anticipated in the going concern period. Following the conclusion of the
re-structuring process, management are forecasting a stronger cashflow
forecast through 2026.
The Directors are confident that any loan extensions required post April 2028
would be granted on reasonably similar terms given the historic track record.
To assess the appropriateness of preparing financial statements on a going
concern basis, management prepared detailed projections of the consolidated
statement of profit and loss, the statement of financial position and cash
flow statements through to 28 April 2027. This review period extends to April
2027, which is looking forward 12 months beyond the date of approval of these
financial statements. The projections were tested against the debt service
cover covenants required by the loan facility.
These projections used the forecast for 2026 and were updated for current
trading and forecasts. This analysis was then extended to the end of April
2027. The projections were stress tested in two ways. Project orders for 2026
were reduced by 50%, then reduced by 50% with 20% loss in SLA revenue applied.
The existing support service contracts, where revenue is recognised over time
were assessed based on historic renewal rates, to establish the likely renewal
of this recurring revenue. Management reviewed the levels of marketing and
discretional bonus spend to mitigate any reductions in revenue. Even with the
revenue drop, management concluded the business will remain a going concern.
The Board has concluded from its thorough assessment of the detailed forecasts
and ability to enact any mitigating actions, if required, that the Group will
have sufficient resources to meet its liabilities during the review period
through to April 2027, that it will meet the bank covenants and that it is
appropriate that the Group and the Company prepare accounts on a going concern
basis.
4. SEGMENTAL REPORTING
The Group's internal organisational and management structure and its system of
internal financial reporting to the Board of Directors comprise of Pebble
Beach Systems and PLC costs. The chief operating decision-maker has been
identified as the Board.
The Board reviews the Group's internal financial reporting in order to assess
performance and allocate resources. Management have therefore determined that
the operating segments for the Group will be based on these reports.
The Pebble Beach Systems business is responsible for the sales and marketing
of all Group software products and services.
Segmental reporting by division Pebble Beach Systems PLC costs Total
£000 £000 £000
Year ended 31 December 2025
Income statement:
Broadcast 12,231 - 12,231
Total revenue 12,231 - 12,231
Adjusted EBITDA 4,725 (563) 4,162
Depreciation (167) - (167)
Amortisation of capitalised development costs (643) - (643)
Non-recurring items (776) - (776)
Share based payment debit - (44) (44)
Exchange gains 48 - 48
Finance costs (45) (353) (398)
Intercompany finance income/(costs) 469 (469) -
Profit/(loss) before taxation 3,611 (1,429) 2,182
Taxation 524 - 524
Profit/(loss) for the year being attributable to owners of the parent 4,135 (1,429) 2,706
Segment assets
Non-current assets 6,815 - 6,815
Current assets 6,052 49 6,101
Total assets 12,867 49 12,916
Total liabilities (6,729) (3,878) (10,607)
Total net assets/(liabilities) 6,138 (3,829) 2,309
Other segment items
Capital expenditure 8 - 8
Capitalised development expenditure 909 - 909
Depreciation (167) - (167)
Amortisation of intangibles (643) - (643)
GEOGRAPHIC EXTERNAL REVENUE ANALYSIS AND REVENUE BY STREAM
The revenue analysis in the table below is based on the geographic location of
the customer for each business.
2025 2024
£000 £000
Europe
UK 833 703
Germany 1,274 351
Remainder of Europe 4,254 6,452
Total Europe 6,361 7,506
Middle East and Africa
UAE 742 412
Remaining Middle East and Africa 1,385 1,389
Total Middle East and Africa 2,127 1,801
Americas and APAC
USA 2,631 1,297
Latin America 720 567
Asia/Pacific 392 282
Total revenue by market 12,231 11,453
5. OPERATING PROFIT OR LOSS
The following items have been included in arriving at the operating profit for
the continuing business:
2025 2024
£000 £000
Inventory recognised as an expense 1,578 1,348
Director and employee costs 5,687 6,778
Depreciation of property, plant and equipment 167 189
Non-recurring items 776 229
Exchange loss charged to the income statement (48) 108
Amortisation of capitalised development costs 643 830
Impairment of intangibles - 2,741
Non-recurring items
The following items are excluded from management's assessment of profit
because by their nature they could distort the annual trend in the Group's
earnings. These are excluded to reflect performance in a consistent manner and
are in line with how the business is managed and measured on a day-to-day
basis:
2025 2024
£000 £000
Strategic advice in connection with strategic options for the company - 38
Severance pay - 191
Cost of restructure 728 -
Legacy Broadcast subsidiary companies liquidation costs 48 -
776 229
6. INCOME TAX EXPENSE
ANALYSIS OF THE TAX CHARGE IN YEAR
2025 2024
£000 £000
Current tax
UK corporation tax - -
Foreign tax - current year 16 5
Adjustments in respect of prior years - -
Total current tax 16 5
Deferred tax
UK deferred tax (540) -
Effect of changes in UK tax rate - -
Adjustments in respect of prior years - -
Total deferred tax (540) -
Total taxation (524) 5
7. EARNINGS PER ORDINARY SHARE
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of ordinary shares
outstanding during the year.
For diluted earnings per share the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares. The dilutive shares are those share options granted to employees where
the exercise price is less than the average market price of the Company's
ordinary shares during the year. The average market value of the Company's
shares for the purpose of calculating the dilutive effect of share options was
based on quoted market prices for the year during which the options were
outstanding.
Reconciliation of the earnings and weighted average number of shares used in
the calculations are set out below.
2025 2024
Earnings Weighted Earnings Earnings Weighted Earnings
£000 average per share £000 average per share
number pence number pence
of shares of shares
000s 000s
Basic earnings per share
Profit/(Loss) attributable to continuing operations 2,706 2.2p (1,308) (1.1)p
Basic earnings and EPS 2,706 124,477 2.2p (1,308) 124,477 (1.1)p
Diluted earnings per share
Profit/(Loss) attributable to continuing operations 2,706 2.0p (1,308) (1.1)p
Diluted EPS 2,706 133,033 2.0p (1,308) 124,477* (1.1)p
*Due to the loss for the year for 2024 share options were anti-dilutive and so
removed from the calculations for diluted EPS
Adjusted earnings
The Directors believe that adjusted EBITDA, adjusted earnings and adjusted
earnings per share all provide additional useful information on annual trends
to shareholders. These measures are used by management for internal
performance analysis and incentive compensation arrangements. The term
"adjusted" is not a defined term under IFRS and may not therefore be
comparable with similarly titled profit measurements reported by other
companies. The principal adjustments to earnings are made in respect of the
amortisation of acquired intangibles, share based payment expense or credit,
non-recurring items and exchange gains or losses charged to the income
statement and their related tax effects.
The reconciliation between reported and adjusted earnings and basic earnings
per share is shown below:
£000 2025 £000 2024
Pence Pence
Reported earnings and EPS 2,706 2.2p (1,308) (1.1)p
Share based payment (credit)/expense 44 0.0p (39) 0.0p
Non-recurring items 629 0.5p 185 0.1p
Exchange losses (37) 0.0p 81 0.1p
Impairment of intangibles - - 2,220 1.80p
Adjusted earnings and EPS 3,342 2.7p 1,139 0.9p
8. INTANGIBLE ASSETS
Goodwill Acquired customer relationships Acquired intellectual property Capitalised development costs Total
£000 £000 £000 £000 £000
Cost
At 1 January 2024 3,218 4,493 3,350 10,850 21,911
Additions - - - 2,229 2,229
At 1 January 2025 3,218 4,493 3,350 13,079 24,140
Additions - - - 909 909
At 31 December 2025 3,218 4,493 3,350 13,988 25,049
Accumulated amortisation and impairment
At 1 January 2024 - (4,493) (3,350) (6,961) (14,804)
Charge for the year - - - (830) (830)
Impairment loss - - - (2,741) (2,741)
At 1 January 2025 - (4,493) (3,350) (10,532) (18,375)
Charge for the year - - - (643) (643)
At 31 December 2025 - (4,493) (3,350) (11,175) (19,018)
Net book value
At 31 December 2025 3,218 - - 2,813 6,031
At 31 December 2024 3,218 - - 2,547 5,765
At 1 January 2024 3,218 - - 3,889 7,107
In accordance with the requirements of IAS 36 'Impairment of assets',
intangible assets are required to be tested for impairment on an annual basis,
or where there is an indication of impairment, with reference to the value of
the asset or cash-generating units ("CGU") in question.
In the prior year, an impairment indicator was identified for one of our
intangible assets, which forms part of capitalised development costs. This
indicator related to an expected delay in the market adoption of IP
technologies. As this delay persists, the impairment of £2.7m continues to
apply and cannot be reversed in the current year. The asset belongs to Pebble
Beach Systems Limited, the only operating segment in the Group.
The carrying value of capitalised development costs at 31 December 2025 is
£2.8 million (2024: £2.5 million).
9. CASH FLOW GENERATED FROM OPERATING ACTIVITIES
Reconciliation of profit or loss before tax to cash generated from operations:
2025 2024
£000 £000
Profit/(loss) before tax 2,182 (1,303)
Depreciation of property, plant and equipment 167 189
Loss on disposal of property, plant and equipment 20 6
Amortisation and impairment of development costs 643 830
Impairment of intangibles - 2,741
Non-recurring item - 229
Share based payment (credit)/expense 44 (39)
Finance costs 398 521
Decrease/(increase) in other non-current assets - -
Decrease/(increase) in inventories 97 (108)
Decrease/(increase) in trade and other receivables (62) 208
(Decrease)/increase in trade and other payables (338) 854
Cash generated from operations 3,151 4,128
10. NET FUNDS
Reconciliation of net debt:
2025 2024
Net cash and cash equivalents Other Total Net cash and cash equivalents Other Total
£000 borrowings net debt £000 borrowings net debt
£000 £000 £000 £000
At 1 January 840 (4,744) (3,904) 796 (5,675) (4,879)
Cash flow for the year before financing 1,852 - 1,852 1,204 - 1,204
Movement in borrowings in the year (1,000) 1,000 - (1,000) 1,000 -
Netting of arrangement fee - - - - - -
(Increase)/decrease in lease debt - 30 30 - (138) (138)
Principal lease payments (67) 67 - (69) 69 -
Exchange rate adjustments (9) - (9) (91) - (91)
Cash and cash equivalents at 1,616 (3,647) (2,031) 840 (4,744) (3,904)
31 December
11. EVENTS AFTER THE REPORTING PERIOD
After the reporting period, on 31 March 2026 Chris Errington stepped down to
retire as a Non-executive Director of Pebble, and Oliver Scott was appointed
to the Board as a Non-executive Director on 31 March 2026. Oliver also
succeeded Chris as Chairman of Pebble's Remuneration Committee.
In April 2026, an extension to the existing loan facility was agreed with the
Company's bankers, Santander, maintaining the Company's £3.6 million loan
facility until 28 April 2028. This extension agreement has a repayment
schedule of £1.0 million per annum consistent with previous years and a new
covenant test based on an EBITDA to debt-servicing cost ratio.
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