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

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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.