Pebble Beach Systems (PEB) , a leading global software business announced its half-year results, noting a 9% rise in revenues despite a rocky economic backdrop, with the outlook remaining positive and a stronger second half expected.
Pebble saw revenues grow 9%, reaching £5.5 million, with a 13% increase in recurring revenue to £2.53 million. Order intake for the period was down to £4.4 million (H1 22: £5m) due to clients postponing non-essential expenditures as economic uncertainties persisted. EBITDA rose to £1.4 million, 25% of the revenue, compared to 26% in the prior year.
On the operational front, success was achieved in the Middle East market, securing two new deals worth £0.65 million with existing customers. Additionally, Pebble secured a £0.36 million order from a Spanish state broadcaster and a significant £130k contract with a state broadcaster in Brazil.
Looking ahead, the company's existing pipeline value stands at £8.7 million, with expectations of growth driven by competitors discontinuing similar solutions. Despite a lower order intake in the first half, management remains confident in achieving full year growth due to a strong pipeline and engaged customer base.
John Varney, Non-Executive Chairman of Pebble Beach Systems Group plc, said: "The Company has delivered a robust performance for the first half of 2023, despite a delay in new order intake. Our continued long-term aim of investing in new software solutions whilst reducing our overall indebtedness remains central to our strategy to ensure we continue to be well positioned to benefit from the industry transition to IP as full-scale adoption occurs.
The Board continues to have confidence that the Group can deliver a strong second half with improved revenue and achieve the Board's expectations for the year.”
View from Vox
A positive update from Pebble despite tough macroeconomic conditions, proving the successful execution its strategy, and considered cashflow management improving its balance sheet in the period.
Pebble’s services are well-positioned to assist its clients in the current climate, with a focus on helping traditional broadcasters adjust their strategies to effectively compete with new players entering the field of video media. Pebble supports their transition from traditional broadcast infrastructures to more flexible IP-based technologies.
Pebble's clients include major industry players, including Fox News in the US, CNBC spanning the UK, South Africa, and Pakistan, Canal+ in France, and Finnish public broadcaster YLE.
Looking ahead, Pebble’s robust pipeline and level of customer engagement set a solid foundation to deliver full-year growth as order levels lift in the second half.
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