The Pebble Group provides digital commerce, products and related services to the global promotional products industry through two focused, complementary and differentiated businesses: Facilisgroup and Brand Addition.
The Pebble Group operates within the global promotional products market, estimated at $50bn. It is a highly competitive landscape, but distributor participants are predominantly small and local. The North American market is estimated by industry body PPAI to be worth over $26bn in FY23 and to have grown by 2.2% in the year, slowing in H2. The total European market is a little smaller. The industry’s resilience is based on its utility and effectiveness as an advertising medium.
TMT |
audiovisual
TMT |
Outlook
TMT |
Flash note
Christopher Lee
CEO
Claire Thomson
CFO
Forecast net cash (£m)
10.6
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (14.9) | (4.2) | (47.0) |
Relative | (16.5) | (9.8) | (48.6) |
52 week high/low | 107.5p/51.0p |
The Pebble Group’s AGM update confirms that trading is in line with FY24 expectations, with attractive opportunities for its two distinct businesses in the large, fragmented promotional products sector. Facilisgroup is a SaaS business, helping North American distributors to optimise their operations, with access to an approved supplier roster. Brand Addition services global brands’ needs for branded product for in-house and external programmes. The well-publicised dip in tech sector marketing spend was a key factor in Pebble’s Q423 outlook revision. Both segments are now well placed to benefit from improving corporate confidence, although timing is uncertain. Pebble is well funded, with £15.9m of net cash (excluding leases) at end FY23. The FY23 dividend doubled to 1.2p, and a £5.0m share buyback is now in place to enhance shareholder value.
Y/E Dec | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2022A | 134.0 | 18.0 | 12.4 | 5.77 | 9.9 | 5.3 |
2023A | 124.2 | 16.0 | 9.9 | 4.59 | 12.4 | 6.0 |
2024E | 128.5 | 16.3 | 10.4 | 4.69 | 12.2 | 5.9 |
2025E | 133.0 | 17.2 | 11.2 | 5.02 | 11.4 | 5.2 |