THE PEBBLE GROUP PLC
("The Pebble Group", the "Group" or the "Company")
AGM Trading Update and Notice of Results
Trading year-to-date in line with FY 25 expectations
Announcing intention to undertake a tender offer to replace the share buyback programme, accelerating returns to shareholders
Ahead of the Annual General Meeting ("AGM"), which is being held later today, The Pebble Group, a leading provider of technology, products and related services to the global promotional products industry, announces the following Trading Update.
Trading Update
To date, there has been no significant adverse effect on our revenues from tariffs implemented on goods imported into the US and at this time our FY 25 forecast remains in line with expectations.
At Facilisgroup, to date, Gross Merchandise Value is slightly ahead compared to prior year, and, after a slower than expected January and February, purchases with our Preferred Suppliers are slightly below. The recent investment made into accelerating organic growth has resulted in improving net new acquisition rates that are expected to contribute to future revenue growth.
At Brand Addition, contract wins in early 2025 have built on those added in late 2024. Total orders by value to date are 7% behind the same prior year period. Order placement timing and new contract wins expected to impact revenue in H2 2025 lead us to anticipate growth during the remainder of 2025 versus the same period in 2024.
Across the Group, we remain confident in our ability to maintain our excellent client retention rates and positively manage our profit margins. Operating cash conversion is strong and improving as planned. The potential impact of the macro-economic environment on our H2 25 revenues is harder to anticipate. We are carefully monitoring trading patterns and will update further in mid-July with our HY 25 trading update.
Tariff impact on our industry and Group
The direct impact of US tariffs on our industry is borne by the US suppliers who import products from tariff affected countries, being a material proportion of the US industry. Since the implementation of tariffs in 2018, these US suppliers have been mitigating the risk of tariff induced price inflation through diversifying product origin and particularly at the start of 2025, investing into inventory at pre-2025 tariff prices. Their huge efforts and support for the US industry under such difficult circumstances is greatly valued.
The effect of tariffs on our Group is from purchases made via these US suppliers by Brand Addition US (23% of total Brand Addition revenues in FY 24) and indirectly via the purchases made by our Facilisgroup Partners (customers). To date these effects have been well-navigated.
Today's unknown is the impact of tariffs on business confidence in H2 2025 and, therefore, any reduction in end user marketing budgets.
Capital allocation priorities
Our priority remains to execute on accelerating organic growth using our increasing operating cash conversion.
Following engagement with our shareholders, the Board has considered various options to enable the return of excess capital. In May 2024, the Company launched a £5.0 million buyback of which £3.6 million has been utilised to date. This buyback programme is ending today.
In its place, the Company plans to return up to £6.5m to shareholders through the initiation of a tender offer. It is the intention that the tender offer will be launched with the Company's trading update in respect of HY 25, which will be issued in mid-July.
Completion, and full take up, of the tender offer would bring total returns to shareholders, including the £3.0m FY 24 dividend, to £13.1m since commencement of the share buyback in May 2024.
Outlook and Notice of Results
Whilst we are cautious about the impact of US tariffs on the strength and confidence of the wider macro economy, trading at Facilisgroup and Brand Addition is currently supporting the delivery of FY 25 market expectations.
The Group's two businesses occupy market leading positions and have significant heritage in the fragmented promotional products industry. The businesses also share enduring long-term relationships with clients, Partners and suppliers which underpin the recurring and repeatable revenues upon which the solid financial performance and cash generation of the Group has been built. The Board continues to consider all value-maximising opportunities for these strong businesses.
We will update further in mid-July with our Trading Update ahead of our Half Year Results announcement on 9 September 2025.
Enquiries:
| The Pebble Group Chris Lee, Chief Executive Officer Claire Thomson, Chief Financial Officer +44 (0) 750 012 4121 | |
Temple Bar Advisory (Financial PR)
Alex Child-Villiers
Alistair de Kare-Silver
+44 (0) 207 183 1190
Panmure Liberum (Nominated Adviser and Broker)
Edward Mansfield
William King
Gaya Bhatt
+44 (0) 20 3100 2000
About The Pebble Group
The Pebble Group is a provider of technology, products and related services to the global promotional products industry, comprising two differentiated businesses, Facilisgroup and Brand Addition, focused on specific areas of the promotional products market. For further information, please visit www.thepebblegroup.com.
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