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 $25bn in FY22 and to have grown by 3.1% in FY23, 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.
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Christopher Lee
CEO
Claire Thomson
CFO
Forecast net cash (£m)
10.6
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 20.4 | 21.5 | (40.4) |
Relative | 19.8 | 21.4 | (43.0) |
52 week high/low | 118.5p/51.0p |
The Pebble Group’s FY23 results were as previously flagged. Facilisgroup, Pebble’s digital commerce segment, grew FY23 revenues by 8% after an H2 slowdown in gross merchandise value (GMV) for its partners affected revenue earned from its preferred supplier base. At Brand Addition, selling into large, global brands, revenue from tech and consumer clients trailed FY22. Both group segments are well placed to benefit from rebuilding corporate assurance and continued investment, although precise timing is uncertain. Pebble has considerable financial resource, with £15.9m in net cash (excluding leases) at end FY23. Management is proposing a doubled dividend of 1.2p and a £5.0m share buyback 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 | 11.6 | 6.2 |
2023A | 124.2 | 16.0 | 9.9 | 4.59 | 14.6 | 7.0 |
2024E | 128.5 | 16.3 | 10.4 | 4.69 | 14.3 | 6.9 |
2025E | 133.0 | 17.2 | 11.2 | 5.02 | 13.3 | 6.1 |