TIDMPEBB
RNS Number : 9013K
Pebble Group PLC (The)
07 September 2021
7 September 2021
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
THE PEBBLE GROUP PLC
("The Pebble Group", the "Group" or the "Company")
UNAUDITED HALF YEAR RESULTS 2021
Strong recovery with positive outlook
The Pebble Group, a leading provider of technology, services and
products to the global promotional products industry, announces its
unaudited results for the six months ended 30 June 2021 ("HY 21" or
the "Period"), which demonstrate a swift recovery. With strong
progress in HY 21, the Board is confident that performance will be
at least in line with market expectations for the year ending 31
December 2021 ("FY 21").
Financials
Adjusted results HY 21 HY 20 HY 19 FY 20
Revenue GBP46.8m GBP33.6m GBP48.1m GBP82.4m
Gross profit GBP17.2m GBP13.6m GBP17.4m GBP31.0m
Gross profit margin 36.8% 40.6% 36.1% 37.6%
Adjusted EBITDA(1) GBP4.4m GBP2.6m GBP5.3m GBP9.8m
Adjusted operating profit(2) GBP2.6m GBP1.2m GBP4.2m GBP6.8m
Adjusted profit before tax(3) GBP2.4m GBP0.9m GBP0.7m GBP6.1m
Underlying operating cash GBP(10.5)m GBP(3.6)m GBP3.0m GBP7.2m
flow(4)
Net (debt) / cash(5) GBP(4.2)m GBP1.9m GBP(63.7)m GBP7.1m
Adjusted earnings per share(6) 1.08p (0.05)p (0.50)p 2.96p
Statutory results HY 21 HY 20 HY 19 FY 20
Operating profit/(loss) GBP2.2m GBP0.9m GBP(0.2)m GBP5.7m
Profit/(loss) before tax GBP1.9m GBP0.6m GBP(3.6)m GBP5.0m
Basic profit/(loss) per
share 0.85p (0.18)p (44.79)p 2.44p
Diluted profit/(loss) per
share 0.84p (0.18)p (44.79)p 2.44p
(1) Adjusted EBITDA means operating profit before depreciation,
amortisation, share-based payments charge and exceptional
items in note 4
(2) Adjusted operating profit means operating profit before
amortisation of acquired intangible assets, share-based
payments charge and exceptional items
(3) Adjusted profit before tax means profit before tax before
amortisation of acquired intangible assets, share-based
payments charge and exceptional items
(4) Underlying operating cash flow is calculated as Adjusted
EBITDA less movements in working capital, capital expenditure
and lease payments excluding movements in transaction related
accruals and payments in respect of acquisitions
(5) Net (debt)/cash is calculated as cash and cash equivalents
less borrowings (excluding lease liabilities)
(6) Adjusted Earnings Per Share ("EPS") represents Adjusted
Earnings meaning profit after tax before amortisation of
acquired intangible assets, share-based payments charge
and exceptional items divided by a weighted average number
of shares
Group highlights and outlook
-- The recovery in HY 21 has been strong with Group revenues
at GBP46.8m being 39.3% ahead of HY 20 (GBP33.6m) and slightly
lower than HY 19 (GBP48.1m)
-- Facilisgroup US Dollar ("USD") Annual Recurring Revenue
("ARR") was 27.0% ahead of HY 20 and 44.8% ahead of HY 19
-- Facilisgroup achieved Adjusted EBITDA margins of 54.6%,
with further investment in people and technology, as we
remain focused on our stated aspiration to grow ARR to $50m
by the end of FY 24
-- Brand Addition revenues for FY 21 are expected to be well
ahead of FY 20 and slightly ahead of FY 19, demonstrating
its ability to win, grow and retain major client contracts
-- Cash outflow in HY 21 has supported the high value of Brand
Addition Consumer Promotion revenue in HY 21 amplifying
the normal in-year cycle. Working capital is reducing as
expected as client receipts are collected to terms
-- Net debt at 6 September was GBP4.8m and we expect Net cash
at 31 December 2021 to be ahead of previous market expectations
at no less than GBP8.0m (31 December 2020: GBP7.1m)
-- The Board is very encouraged by the Group's performance
in HY 21 and expects FY 21 to be at least in line with market
expectations
Facilisgroup
-- FY 21 USD ARR growth over prior year is expected to be approaching
30%
-- 190 Partners at 31 August 2021 with a further 7 contracted
awaiting implementation
-- The increase in purchases through Preferred Suppliers is
ahead of management expectations
-- H2 21 Gross Merchandise Value running at 136% of H2 20 and
141% of H2 19
-- New ecommerce solution launched in beta form with 51 Partners
in early access
Brand Addition
-- Total FY 21 revenues expected to be well ahead of FY 20
and slightly ahead of FY 19
-- Significant growth in Consumer Promotions revenue expected
in FY 21, compared to both FY 20 and FY 19
-- Growth in Corporate Programmes revenue expected in FY 21,
compared to FY 20, supported by new business wins from FY
20 and recovery continues against FY 19
-- Total orders invoiced or received to be invoiced in 2021
at 31 August amounted to GBP81.8m, being 153% of 2020 (GBP53.4m)
and 114% of 2019 (GBP71.3m)
Enquiries:
The Pebble Group plc
Chris Lee, Chief Executive Officer
Claire Thomson, Chief Financial
Officer +44 (0) 161 786 0415
Grant Thornton UK LLP (Nominated
Adviser)
Samantha Harrison / Harrison Clarke
/ Lukas Girzadas +44 (0) 20 7184 4384
Berenberg (Corporate Broker)
Chris Bowman / Jen Clarke / Arnav
Kapoor +44 (0) 20 3207 7800
Belvedere Communications (Financial thepebblegrouppr@belvederepr.com
PR) +44 (0) 7715 769 078
Cat Valentine +44 (0) 7967 816 525
Keeley Clarke
About The Pebble Group plc - www.thepebblegroup.com
The Pebble Group is a provider of technology, services and
products to the global promotional products industry, comprising
two differentiated businesses, focused on specific areas of the
promotional products market:
Facilisgroup - www.facilisgroup.com
Facilisgroup focuses on supporting the growth of mid-sized
Promotional Product businesses in North America by providing a
technology platform, which enables those businesses to benefit from
significant business efficiency and gain meaningful supply chain
advantage from the ability to purchase from quality suppliers under
preferred terms.
Brand Addition - www.brandaddition.com
Brand Addition focuses upon providing promotional products and
related services under contract to some of the world's most
recognisable brands. Its largest contracts are valued in the
millions of pounds with the products and services supplied being
used for brand building, customer engagement and employee rewards.
Working in close collaboration with its clients, Brand Addition
designs products and product ranges, hosts client-branded global
web stores and provides international sourcing and distribution
solutions.
We categorise our revenues into two divisions, Corporate
Programmes, that supports our clients' general marketing
activities, and Consumer Promotions, that supports our clients in
driving their own sales volumes.
A copy of the Half Year Results 2021 Investor Presentation will
be available on the Company's website later today
https://www.thepebblegroup.com/investors/results-reports-and-presentations/.
CHIEF EXECUTIVE OFFICER'S REVIEW
Overview
The focus during HY 21 has been the continued investment in our
people and technology to support the excellent growth prospects of
Facilisgroup, alongside demonstrating the ability of Brand Addition
to recover quickly from the revenue reduction suffered in 2020. We
have made good progress on these objectives.
Our teams across Asia, Europe and North America continue to be
incredibly flexible and adapt quickly to support their colleagues,
clients, Partners and suppliers. Their dedication and talent has
resulted in our Group recovering strongly from the end-market
demand challenges of 2020. The promotional products industry is
recovering, albeit with disruption remaining within the supply
chain which we expect to continue until at least Q2 22. Here again,
our teams continue to lean on their experience, working with our
suppliers for the long-term benefit of all stakeholders.
Against this backdrop, the Board is very encouraged by the
Group's performance in HY 21.
In HY 21, Group revenue was GBP46.8m (HY 20: GBP33.6m, HY 19:
GBP48.1m), generating Adjusted EBITDA of GBP4.4m (HY 20: GBP2.6m,
HY 19: GBP5.3m) and Operating profit of GBP2.2m (HY 20: GBP0.9m, HY
19: GBP(0.2m)).
Below we summarise the results and progress of our
businesses.
Facilisgroup
HY revenue and profit analysis Facilisgroup
HY 21 HY 20 HY 19
Recurring revenue GBP5.4m GBP4.8m GBP4.1m
Other revenue GBP0.2m GBP0.3m GBP0.5m
-------- ------- ----------
Total revenue GBP5.6m GBP5.1m GBP4.6m
Gross profit GBP5.6m GBP5.1m GBP4.6m
Gross profit margin 100% 100% 100%
Adjusted EBITDA GBP3.1m GBP2.9m GBP2.4m
Operating profit/(loss) GBP2.2m GBP2.3m GBP(2.2m)
Our vision is to be the leading technology provider for the
promotional products industry, using technology and services to
propel forward the growth and efficiency of entrepreneurial
distributors (Partners) and suppliers.
Our aspiration is to grow ARR to $50m by the end of 2024 through
increasing user numbers and introducing new technology products
into the promotional products industry.
We continue to be pleased with the progress made by the
business. Total revenue in the Period has increased to GBP5.6m,
11.5% ahead of the same period in 2020 when measured in Sterling.
Recurring revenue at $7.5m was encouragingly 27.0% ahead of HY 20,
when measured in Facilisgroup's home currency of USD, and 44.8%
ahead of HY 19.
We have made further investment in people and technology to
support our aspirational growth plans. Alongside this investment,
Facilisgroup delivered Adjusted EBITDA returns of 54.6% (HY 20:
57.8%, HY 19: 53.3%) and Operating profit of 39.2% (HY 20: 45.5%,
HY 19: (48.5%)), demonstrating the highly profitable dynamics of
the business model.
The number of Partners, a key value driver, has increased
throughout the Period. Partner numbers today total 190 (31 December
2020: 175), with a further 7 contracted and awaiting
implementation.
The Gross Merchandise Value (GMV) processed by Partners through
Facilisgroup technology in the Period to 31 August 2021 was strong
at $668m. This figure is comparable with HY 20, which included a
small number of large value sales of personal protective equipment
creating a spike in GMV.
To date in H2 21, GMV has been accelerating compared to prior
years, running at 136% of H2 20 and 141% of H2 19, a positive
reflection of the increasing Partner numbers and the recovering end
markets of our Partners.
The fee structures within the business result in a very robust
and predictable recurring revenue stream.
Our Management Fee (c.70% divisional income in FY 20) has grown
in line with Partner numbers.
Our Marketing Fund (c.25% divisional income in FY 20) has
benefited from an increase in the proportion of purchases made with
Preferred Suppliers, which is returning towards FY 19 levels along
with an underlying fee improvement from the delivery of additional
efficiencies in the Preferred Supplier to Partner workflow.
As planned, our first ecommerce product, allowing for the easy
implementation of online popup stores, was launched in beta form to
our Partners in the Period. Uptake has been positive with 51
Partners utilising the product in early access. The revenue impact
from this product is expected to start from Q2 22.
Integration of this ecommerce platform, which includes the
online popup store, into our existing order workflow software is
now expected to be in Q2 22, as recent development time has been
focused on enhanced functionality following Partner feedback. The
launch of this product into the wider promotional products market
is expected in late 2022.
In order to clearly articulate our expanded offering to our
target markets within the North American promotional products
industry, we have rebranded our order workflow product, upon which
the business has traded to date, from @ease to Syncore and our new
ecommerce platform will go to market under the brand Commercio.
From the above activities, we expect to meet our FY 21
aspirational milestones, as set out in our Audited Final Results
2020 announcement of 23 March 2021, and USD ARR growth to be
approaching 30% in FY 21.
Brand Addition
HY revenue and profit analysis Brand Addition
HY 21 HY 20 HY 19
Revenue GBP41.1m GBP28.5m GBP43.6m
Gross profit GBP11.6m GBP8.6m GBP12.8m
Gross profit margin 28.2% 30.0% 29.4%
Adjusted EBITDA GBP2.5m GBP0.4m GBP3.3m
Operating profit/(loss) GBP1.2m GBP(0.7)m GBP2.5m
Our vision is to be recognised as the supplier of choice for
global brands that use creative merchandise as a key stakeholder
engagement tool.
Our strategy is to grow revenues organically through long-term,
contracted relationships, by expanding the spend of our existing
clients, whilst attracting new client contracts.
Revenue for HY 21 has increased to GBP41.1m, being 144% of 2020
and 94.4% of 2019. This recovery over HY 20 and return towards HY
19 revenue reflects an excellent performance, underpinned by
significant growth in our Consumer Promotions division (40% FY 20
divisional sales) as existing clients have consolidated their spend
across geographies using Brand Addition as a preferred and trusted
supplier.
Gross profit decreased slightly in the Period, as expected, to
28.2% (HY 20: 30.0%, HY 19: 29.4%), as the business successfully
continues to manage its clients through the supply chain challenges
resulting from Brexit and global freight and labour disruption
together with implementing two significant new business wins from
2020. Our medium term aim remains a 30% Gross profit target.
The costs between Gross profit and Adjusted EBITDA are
predominately people related. These costs have increased from HY
20, when we utilised the UK Job Retention Scheme and were supported
by our team taking temporary salary reductions. Neither of these
reductions to costs have been applicable in HY 21.
The above resulted in Adjusted EBITDA returns of 6.1% (HY 20:
1.2%, HY 19: 7.5%) and Operating profit returns of 2.9% (HY 20:
(2.4%), HY 19: 5.7%).
Looking to FY 21, total orders invoiced or received to be
invoiced in 2021 at 31 August amounted to GBP81.8m, being 153% of
2020 (GBP53.4m) and 114% of 2019 (GBP71.3m) against FY 20 revenue
of GBP72.6m and FY 19 revenue of GBP97.9m.
Through the normal order receipt to invoice cycle, the majority
of our Consumer Promotion orders that will be invoiced in FY 21
have now been received. Therefore, the revenue in the remainder of
the year will be generated primarily from our Corporate Programmes
division, which is recovering towards 2019 levels. Corporate
Programme orders in the five weeks to the end of August were c.90%
of the comparable period in 2019.
From the strong value of orders already received, alongside
current activity, we expect FY 21 revenues in Brand Addition to be
significantly ahead of FY 20 and slightly ahead of FY 19.
Added to the above, the business has continued to attract new
client contracts which will positively impact sales in 2022.
Environmental, Social and Governance ("ESG")
We are pleased to announce that we will be publishing our first
ESG Report in October 2021, which will set out the strategy and
framework that underpins our approach. Details of how to access
this report will be announced on publication.
Outlook
The highly recurring nature of the revenues at Facilisgroup and
the value of orders received to date at Brand Addition lead the
Board to be confident that FY 21 performance will be at least in
line with market expectations.
We believe the prospects for the Group to be strong.
Christopher Lee
Chief Executive Officer
7 September 2021
CHIEF FINANCIAL OFFICER'S REVIEW
HY 21 HY 20 FY 20
Unaudited Unaudited Audited
GBP'm GBP'm GBP'm
Revenue 46.8 33.6 82.4
Gross profit 17.2 13.6 31.0
Gross profit margin 36.8% 40.6% 37.6%
Adjusted EBITDA 4.4 2.6 9.8
Adjusted EBITDA margin 9.5% 7.6% 11.8%
Depreciation and amortisation (2.0) (1.7) (3.5)
Share-based payment charge (0.2) - -
Exceptional items - - (0.6)
Operating profit 2.2 0.9 5.7
Net finance costs (0.3) (0.3) (0.7)
Profit before tax 1.9 0.6 5.0
Tax (0.5) (0.9) (0.9)
Profit/(Loss) for the Period 1.4 (0.3) 4.1
Weighted average number of
shares 167,450,893 167,450,893 167,450,893
Adjusted EPS 1.08p (0.05)p 2.96p
Basic EPS 0.85p (0.18)p 2.44p
Revenue
Revenue for the Period to 30 June was GBP46.8m (HY 20:
GBP33.6m), an increase of GBP13.2m (39.3%) compared to the same
period in 2020. Of this increase, GBP12.6m relates to Brand
Addition from growth in the Consumer Promotions division (GBP7.2m)
and a recovery in the Corporate Programmes division (GBP5.4m).
Facilisgroup total revenues increased GBP0.6m (11.5%) with the
Sterling growth against prior year being reduced by the strength of
Sterling against USD. Facilisgroup ARR growth when measured in its
home currency of USD was 27.0%. This was achieved through increases
in our Management Fees from additional Partner numbers and a growth
in our Marketing Fund where we benefited from Partners returning
towards normal purchasing patterns through our Preferred Suppliers
and an underlying fee increase.
Gross profit
Gross profit as a percentage of revenue was 36.8% (HY 20:
40.6%). This largely reflects the impact of the increased weighting
of Brand Addition sales as a proportion of the total Group, as the
business recovers from the sales impact in 2020. In Brand Addition,
there was also a 1.8 p.p.t reduction in margin as new business,
which has lower than average initial margins, impacted the sales
mix in the short term and the business navigating a period of
increased costs associated with Brexit, freight rate pricing, and
freight capacity challenges.
Adjusted EBITDA
Adjusted EBITDA was GBP4.4m (HY 20: GBP2.6m). The movement from
HY 20 is made up as follows:
- Facilisgroup GBP0.2m increase from incremental revenue net
of the costs of investment in the team to support delivery
of the 2024 recurring revenue aspirations;
- Brand Addition GBP2.1m increase driven by GBP3.0m incremental
sales volumes offset in part by GBP0.9m additional people
costs as HY 20 included contributions or savings from the
use of Government furlough or equivalent schemes, and temporary
salary and bonus reductions; and
- Central costs increased by GBP0.5m in the period, GBP0.1m
from temporary salary savings in HY 20, the balance being
incremental costs through the growth of the team and the
Group's investment in ESG.
The Adjusted EBITDA margin increased to 9.5% (HY 20: 7.6%) as
revenues in Brand Addition return towards 2019 levels.
Depreciation and amortisation
The total charge for the Period was GBP2.0m (HY 20: GBP1.7m) of
which GBP1.1m (HY 20: GBP0.9m) related to the amortisation of
intangible assets. This increase is in line with expectation and
reflects the Group's continued investment in its technology.
GBP0.7m of the charge relates to depreciation on leases capitalised
in accordance with IFRS 16, an increase of GBP0.2m on the previous
year. Both increases reflect investment in the Group's
infrastructure as it scales to meet its 2024 aspirations.
Share-based payments
The total charge for the Period under IFRS 2 "Share-based
payments" was GBP0.2m (HY 20: nil). This charge related to the 2020
awards made under the 2019 Long Term Incentive Plan.
Operating profit
Operating profit for the Period was GBP2.2m (HY 20:
GBP0.9m).
Taxation
The tax charge for the Period to 30 June was GBP0.5m (2020:
GBP0.9m) and is based on full year Group expected tax rates for
2021 of c.25%. This is higher than the UK Corporation tax rate due
to the proportion of Group profits earned overseas where the rates
are higher than the UK.
Earnings per share
Adjusted weighted average earnings per share for the Period was
1.08p (HY 20: (0.05)p) reflecting the increase in Adjusted EBITDA
for the Period as discussed above.
Basic earnings per share was 0.85p (HY 20: (0.18)p).
Dividends
On admission to AIM in December 2019, the Group's stated
intention was to make dividend payments of c.30% of profit after
tax. This policy remains in place. However, as we believe the
opportunities ahead of us are significant, in particular investment
in Facilisgroup, we have taken the decision to retain cash in the
business and not to pay an interim dividend in 2021. The timing of
implementing our stated dividend policy will be considered again
against the Group's full year progress and an update provided at
that time.
Cashflow
The Group had a cash balance of GBP3.6m at 30 June 2021 (30 June
2020: GBP10.2m), which included GBP7.7m drawn down from its
GBP10.0m committed revolving credit facility (30 June 2020:
GBP8.4m).
Cashflow for the Period is set out below
HY 21 HY 20 FY 20
Unaudited Unaudited Audited
GBP'm GBP'm GBP'm
Adjusted EBITDA 4.4 2.6 9.8
Movement in working capital excluding
IPO related accruals (12.3) (4.4) 1.7
Capital expenditure excluding acquisition
of intangible assets (2.0) (1.3) (3.1)
Leases (0.6) (0.5) (1.2)
---------- ---------- --------
Underlying operating cash flow (10.5) (3.6) 7.2
Movement in working capital IPO related
accruals (0.4) (3.4) (3.5)
Acquisition of intangible assets (0.2) - (2.6)
---------- ---------- --------
Adjusted operating cash flow (11.1) (7.0) 1.1
Tax paid (0.1) (0.2) (1.3)
Net finance cash flows 7.5 8.1 (0.7)
Exceptional items - - (0.5)
Exchange loss 0.2 0.5 (0.4)
---------- ---------- --------
Net cash flow (3.5) 1.4 (1.8)
The movement in working capital in the Period was GBP(12.3m) (HY
20: GBP(4.4m)). The outflow has supported the high value of Brand
Addition Consumer Promotion revenue in HY 21 amplifying the normal
in-year cycle which peaks in Q3 as these orders are delivered and
invoiced. The incremental outflow of GBP7.9m relates to the
significant increased trading volumes principally (i) GBP2.5m
Consumer Promotions orders in transit to the customer; and (ii)
GBP5.4m trade receivables net of trade payables.
Capital expenditure in the Period was GBP2.0m (HY 20: GBP1.3m).
The GBP0.7m additional spend relates to the ongoing investment in
Facilisgroup technology products.
Lease payments relate to leases capitalised in accordance with
IFRS 16. The increase arises as the Group entered into a new office
for Facilisgroup in December 2020.
Net finance cash flows in the Period of GBP7.5m (HY 20: GBP8.1m)
relate to utilisations on committed facilities less interest
payments in respect of leases capitalised in accordance with IFRS
16.
Cash and liquidity
The Group's working capital cycle is unwinding as expected, the
high point experienced in the period from June to August 2021 is
reducing as we move through the year, with clients and Partners
continuing to pay to agreed terms. The Group had Net debt of
GBP4.8m at 6 September 2021. This includes a GBP9.2m drawdown from
the GBP10.0m committed revolving credit facility. We expect Net
cash at the full year end, 31 December 2021 to be ahead of previous
expectation at no less than GBP8.0m (31 December 2020:
GBP7.1m).
Claire Thomson
Chief Financial Officer
7 September 2021
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
Period ended Period ended Year ended
30 June 30 June 31 December
Notes 2021 2020 2020
-------------- -------------- -------------
GBP'000 GBP'000 GBP'000
Revenue 46,759 33,564 82,374
Cost of goods sold (29,533) (19,951) (51,382)
-------------- -------------- -------------
Gross profit 17,226 13,613 30,992
Operating expenses (15,064) (12,717) (24,781)
Operating expenses - exceptionals 4 - - (542)
-------------- -------------- -------------
Total operating expenses (15,064) (12,717) (25,323)
-------------- -------------- -------------
Operating profit 2,162 896 5,669
Analysed as:
Adjusted EBITDA(1) 4,448 2,564 9,755
Depreciation 8 (986) (719) (1,567)
Amortisation 7 (1,071) (949) (1,963)
Share-based payment charge 12 (229) - (14)
Exceptional items 4 - - (542)
Operating profit 2,162 896 5,669
----------------------------------- -------- -------------- --------------
Finance expense (269) (303) (700)
-------------- -------------- -------------
Profit before taxation 1,893 593 4,969
Income tax expense 5 (473) (897) (889)
-------------- -------------- -------------
Profit/(loss) for the period 1,420 (304) 4,080
============== ============== =============
Basic profit/(loss) per share 6 0.85p (0.18)p 2.44p
============== ============== =============
Diluted profit/(loss) per
share 6 0.84p (0.18)p 2.44p
============== ============== =============
Note 1: Adjusted EBITDA, which is defined as operating profit
before depreciation, amortisation, exceptional items and
share-based payment charge is a non-GAAP metric used by management
and is not an IFRS disclosure.
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
Unaudited Unaudited Audited
Period ended Period ended Year ended
30 June 30 June 31 December
2021 2020 2020
-------------- -------------- -------------
GBP'000 GBP'000 GBP'000
Items that may be subsequently reclassified
to profit and loss
Foreign operations - foreign currency
translation differences (218) 1,299 (708)
-------------- -------------- -------------
Other comprehensive (expense)/income
for the period/year (218) 1,299 (708)
Profit/(loss) for the period/year 1,420 (304) 4,080
-------------- -------------- -------------
Total comprehensive income for the
period/year 1,202 995 3,372
============== ============== =============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
As at As at As at 31
30 June 30 June December
Notes 2021 2020 2020
---------- ---------- ----------
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Intangible assets 7 54,387 51,140 54,017
Property, plant and equipment 8 8,460 6,182 9,102
Deferred tax asset 316 167 493
Total non-current assets 63,163 57,489 63,612
---------- ---------- ----------
Current assets
Inventories 9 15,635 12,404 12,109
Trade and other receivables 30,032 18,920 20,988
Cash and cash equivalents 3,601 10,249 7,066
Current tax asset 533 - 829
---------- ---------- ----------
Total current assets 49,801 41,573 40,992
---------- ---------- ----------
TOTAL ASSETS 112,964 99,062 104,604
========== ========== ==========
LIABILITIES
Non-current liabilities
Lease liability 10 7,068 5,388 7,645
Trade and other payables - - 930
Deferred tax liability 2,630 1,904 2,637
Total non-current liabilities 9,698 7,292 11,212
---------- ---------- ----------
Current liabilities
Borrowings 7,750 8,368 -
Lease liability 10 1,422 1,003 1,334
Trade and other payables 26,399 17,647 25,775
Current tax liability - 859 -
Total current liabilities 35,571 27,877 27,109
---------- ---------- ----------
TOTAL LIABILITIES 45,269 35,169 38,321
========== ========== ==========
NET ASSETS 67,695 63,893 66,283
========== ========== ==========
Share capital 1,675 1,800 1,800
Share premium 78,451 78,451 78,451
Capital reserve 125 - -
Merger reserve (103,581) (103,581) (103,581)
Translation reserve (1,822) 403 (1,604)
Share-based payments reserve 223 - 13
Retained earnings 92,624 86,820 91,204
---------- ---------- ----------
TOTAL EQUITY 67,695 63,893 66,283
========== ========== ==========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share-based
Share Share Capital Merger Translation payments Retained Total
capital premium reserve reserve reserve reserve earnings equity
---------- -------- --------- --------- ------------- ----------- --------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2020 1,800 78,451 - (103,581) (896) - 87,124 62,898
========== ======== ========= ========= ============= =========== ========= =======
Loss for the period - - - - - - (304) (304)
Other comprehensive
income for the period - - - - 1,299 - - 1,299
Total comprehensive
income/(expense) - - - - 1,299 - (304) 995
At 30 June 2020 1,800 78,451 - (103,581) 403 - 86,820 63,893
---------- -------- --------- --------- ------------- ----------- --------- -------
Profit for the period - - - - - - 4,384 4,384
Other comprehensive
expense for the period - - - - (2,007) - - (2,007)
---------- -------- --------- --------- ------------- ----------- --------- -------
Total comprehensive
income/(expense) - - - - (2,007) - 4,384 2,377
---------- -------- --------- --------- ------------- ----------- --------- -------
Employee share schemes
- value of employee
services - - - - - 13 - 13
---------- -------- --------- --------- ------------- ----------- --------- -------
Total transactions
with owners recognised
in equity - - - - - 13 - 13
---------- -------- --------- --------- ------------- ----------- --------- -------
At 31 December 2020 1,800 78,451 - (103,581) (1,604) 13 91,204 66,283
---------- -------- --------- --------- ------------- ----------- --------- -------
Profit for the period - - - - - - 1,420 1,420
Other comprehensive
expense for the period - - - - (218) - - (218)
Total comprehensive
income/(expense) - - - - (218) - 1,420 1,202
Purchase of deferred
shares (125) - 125 - - - - -
Employee share schemes
- value of employee
services - - - - - 210 - 210
Total transactions
with owners recognised
in equity (125) - 125 - - 210 - 210
At 30 June 2021 1,675 78,451 125 (103,581) (1,822) 223 92,624 67,695
---------- -------- --------- --------- ------------- ----------- --------- -------
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
Period ended Period ended Year ended
30 June 30 June 31 December
Notes 2021 2020 2020
-------------- -------------- -------------
GBP'000 GBP'000 GBP'000
Operating profit 2,162 896 5,669
Adjustments for:
* Amortisation 7 1,071 949 1,963
* Depreciation 8 986 719 1,567
* Share-based payments charge 12 229 - 13
- 10 -
* Loss on disposal of fixed assets
Cash flows from operating activities
before changes in working capital 4,448 2,574 9,212
* Change in inventories (3,526) (4,452) (4,157)
* Change in trade receivables (9,044) 6,624 4,556
* Change in trade payables (129) (9,920) (2,146)
-------------- -------------- -------------
Cash flows (used in)/from operating
activities (8,251) (5,174) 7,465
* Income taxes paid (46) (236) (1,313)
-------------- -------------- -------------
Net cash flows (used in)/from operating
activities (8,297) (5,410) 6,152
-------------- -------------- -------------
Cash flows from investing activities
* Purchase of property, plant and equipment (257) (236) (806)
* Purchase of intangible assets (1,983) (1,054) (4,871)
Net cash flows used in investing
activities (2,240) (1,290) (5,677)
-------------- -------------- -------------
Cash flows from financing activities
* Lease payments (594) (521) (1,141)
* Interest paid (269) (303) (700)
* Receipts from secured loan facilities 7,750 8,368 -
Net cash flows from/(used in) financing
activities 6,887 7,544 (1,841)
-------------- -------------- -------------
NET CASH FLOWS (3,650) 844 (1,366)
============== ============== =============
Cash and cash equivalents at beginning
of period 7,066 8,861 8,861
Effect of exchange rate fluctuations
on cash held 185 544 (429)
-------------- -------------- -------------
Cash and cash equivalents at end
of period 3,601 10,249 7,066
-------------- -------------- -------------
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL
INFORMATION
1. GENERAL INFORMATION
The principal activity of The Pebble Group plc (the "Company")
is that of a holding company and the principal activity of the
Company and its subsidiaries (the "Group") is the sale of products,
services and technology to the promotional merchandise industry.
The Group has two segments, Brand Addition and Facilisgroup. For
Brand Addition this is the sale of promotional products
internationally, to many of the world's best-known brands, and for
Facilisgroup the provision of technology, consolidated buying power
and community learning and networking events to SME promotional
product distributors in North America, its Partners, through
subscription-based services.
The Company was incorporated on 27 September 2019 in the United
Kingdom and is a public company limited by shares registered in
England and Wales. The registered office of the Company is Broadway
House, Trafford Wharf Road, Trafford Park, Manchester, England M17
1DD. The Company registration number is 12231361.
2. BASIS OF PREPARATION
These condensed consolidated interim financial statements of the
Group are for the period ended 30 June 2021. They have been
prepared on the basis of the policies set out in the 2020 annual
financial statements and in accordance with UK adopted IAS 34.
Financial information for the period ended 30 June 2020 included
herein is derived from the condensed consolidated interim financial
statements for that period.
The condensed consolidated interim financial statements have not
been reviewed or audited, nor do they comprise statutory accounts
for the purpose of Section 434 of the Companies Act 2006, and do
not include all of the information or disclosures required in the
annual financial statements and should therefore be read in
conjunction with the Group's 2020 annual financial statements,
which were prepared in accordance with international accounting
standards in conformity with the requirements of the Companies Act
2006 and international financial reporting standards adopted
pursuant to Regulation (EC) No 1606/2002 as it applies in the
European Union.
Financial information for the year ended 31 December 2020
included herein is derived from the statutory accounts for that
year, which have been filed with the Registrar of Companies. The
auditors' report on those accounts was unqualified, did not contain
an emphasis of matter paragraph and did not contain a statement
under Section 498 of the Companies Act 2006.
The condensed consolidated interim financial statements are
presented in the Group's functional currency of pounds Sterling and
all values are rounded to the nearest thousand (GBP'000) except
when otherwise indicated.
Accounting Policies
The accounting policies adopted in the preparation of the
condensed consolidated interim financial statements are consistent
with those followed in the preparation of the Group's annual
financial statements for the year ended 31 December 2020 as
described in the Group's Annual Report and full financial
statements for that year and as available on the Group's website (
www.thepebblegroup.com ).
Taxation
Taxes on income in the interim periods are accrued using
management's best estimate of the weighted average annual tax rate
that would be applicable to expected total annual earnings.
Forward looking statements
Certain statement in these condensed consolidated interim
financial statements are forward looking with respect to the
operations, strategy, performance, financial condition and growth
opportunities of the Group. The terms "expect", "anticipate",
"should be", "will be", "is likely to" and similar expressions
identify forward-looking statements. Although the Board believes
that the expectations reflected in these forward-looking statements
are reasonable, by their nature these statements are based on
assumptions and are subject to a number of risks and uncertainties.
Actual events could differ materially from those expressed or
implied by these forward-looking statements. Factors which may
cause future outcomes to differ from those foreseen in
forward-looking statements include, without limitation: general
economic conditions and business conditions in the Group's markets;
customers' expectations and behaviours; supply chain developments;
technology changes; the actions of competitors; exchange rate
fluctuations; and legislative, fiscal and regulatory developments.
Information contained in these condensed consolidated interim
financial statements relating to the Group should not be relied
upon as a guide to future performance.
Key risks and uncertainties
The Group has in place a structured risk management process
which identifies key risks and uncertainties along with their
associated mitigants. The key risks and uncertainties that could
affect the Group's medium-term performance, and the factors that
mitigate those risks have not substantially changed from those set
out in the Group's Annual Report which can be found on the Group's
website ( www.thepebblegroup.com ) and are summarised below.
Market Strategic Financial Operational
* Pandemic related disruption * Concentrated client base * Currency and foreign exchange * Retaining and attracting key personnel
* Macroeconomic environment * Acquisition risk * Reliance on IT systems
* Breach of IT security
* Climate Change
------------------------------- ------------------------------------ ---------------------------------------------
Going Concern statement
The Group meets its day-to-day working capital requirements
through its own cash balances and committed banking facilities. In
assessing the appropriateness of adopting the going concern basis
in the preparation of these condensed consolidated interim
financial statements, the Directors have prepared cash flow
forecasts and projections up to 31 December 2022.
The forecasts and projections, which the Directors consider to
be prudent, have been further sensitised by applying reductions to
revenue growth and margin, to consider a severe but plausible
downside. Under both the base and sensitised case the Group is
expected to have headroom against covenants and a sufficient level
of financial resources available through existing facilities when
the future funding requirements of the Group are compared with the
level of committed available facilities. Based on this, the
Directors are satisfied that the Group has adequate resources to
continue in operational existence for the foreseeable future. For
this reason, they continue to adopt the going concern basis in
preparing the condensed consolidated interim financial
statements.
3. SEGMENTAL ANALYSIS
The chief operating decision-maker has been identified as the
Board of Directors. The Board of Directors reviews The Pebble Group
Plc's internal reporting in order to assess performance and
allocate resources. The Board of Directors has determined that the
operating segments are those of Brand Addition and
Facilisgroup.
Segment information about the above segments is presented
below:
Income statement for the period ended 30 June 2021
Period ended
Central 30 June
Brand Addition Facilisgroup operations 2021
--------------- ------------- ------------ -------------
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 41,124 5,635 - 46,759
Cost of goods sold (29,533) - - (29,533)
--------------- ------------- ------------ -------------
Gross profit 11,591 5,635 - 17,226
Operating expenses (10,379) (3,428) (1,257) (15,064)
Total operating expenses (10,379) (3,428) (1,257) (15,064)
--------------- ------------- ------------ -------------
Operating profit/(loss) 1,212 2,207 (1,257) 2,162
Analysed as:
Adjusted EBITDA 2,523 3,076 (1,151) 4,448
Depreciation (705) (260) (21) (986)
Amortisation (533) (538) - (1,071)
Share-based payment charge (73) (71) (85) (229)
Operating profit/(loss) 1,212 2,207 (1,257) 2,162
------------------------------- --------------- ------------- ------------
Finance expense (191) (15) (63) (269)
--------------- ------------- ------------ -------------
Profit/(loss) before taxation 1,021 2,192 (1,320) 1,893
Income tax expense (255) (548) 330 (473)
--------------- ------------- ------------ -------------
Profit/(loss) for the period 766 1,644 (990) 1,420
=============== ============= ============ =============
Due to the timing on the delivery of orders, the Brand Addition
segment of The Pebble Group Plc traditionally raises a higher
number of invoices in the period July to December which results in
The Pebble Group Plc's performance being weighted to the second
half of the year.
All the above revenues are generated from contracts with
customers.
Income statement for the period ended 30 June 2020
Period ended
Central 30 June
Brand Addition Facilisgroup operations 2020
--------------- ------------- ------------ -------------
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 28,511 5,053 - 33,564
Cost of goods sold (19,951) - - (19,951)
--------------- ------------- ------------ -------------
Gross profit 8,560 5,053 - 13,613
Operating expenses (9,251) (2,752) (714) (12,717)
Total operating expenses (9,251) (2,752) (714) (12,717)
--------------- ------------- ------------ -------------
Operating profit/(loss) (691) 2,301 (714) 896
Analysed as:
Adjusted EBITDA 355 2,923 (714) 2,564
Depreciation (612) (107) - (719)
Amortisation (434) (515) - (949)
Exceptional items - - - -
------------- ------------ -------------
Operating profit/(loss) (691) 2,301 (714) 896
------------------------------- --------------- ------------- ------------ -------------
Finance expense (219) (15) (69) (303)
--------------- ------------- ------------ -------------
Profit/(loss) before taxation (910) 2,286 (783) 593
Income tax expense (303) (594) - (897)
--------------- ------------- ------------ -------------
Profit/(loss) for the period (1,213) 1,692 (783) (304)
=============== ============= ============ =============
Income statement for the year ended 31 December 2020
Year ended
Central 31 December
Brand Addition Facilisgroup operations 2020
--------------- ------------- ------------ -------------
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 72,608 9,766 - 82,374
Cost of goods sold (51,382) - - (51,382)
--------------- ------------- ------------ -------------
Gross profit 21,226 9,766 - 30,992
Operating expenses (18,233) (5,077) (1,471) (24,781)
Operating expenses - exceptional (429) (42) (71) (542)
Total operating expenses (18,662) (5,119) (1,542) (25,323)
Operating profit/(loss) 2,564 4,647 (1,542) 5,669
Analysed as:
Adjusted EBITDA 5,209 5,994 (1,448) 9,755
Depreciation (1,316) (242) (9) (1,567)
Amortisation (900) (1,063) - (1,963)
Share-based payment charge - - (14) (14)
Exceptional items (429) (42) (71) (542)
Total operating profit/(loss) 2,564 4,647 (1,542) 5,669
---------------------------------- --------------- ------------- ------------
Finance expense (433) (29) (238) (700)
--------------- ------------- ------------ -------------
Profit/(loss) before taxation 2,131 4,618 (1,780) 4,969
Income tax expense (176) (1,182) 469 (889)
--------------- ------------- ------------ -------------
Profit/(loss) for the year 1,955 3,436 (1,311) 4,080
=============== ============= ============ =============
Statement of Financial Position as at 30 June 2021
As at
Central 30 June
Brand Addition Facilisgroup operations 2021
--------------- ------------- ------------ ---------
GBP'000 GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Intangible assets 37,744 16,643 - 54,387
Property, plant and equipment 5,146 3,215 99 8,460
Deferred tax asset 41 19 256 316
Total non-current assets 42,931 19,877 355 63,163
--------------- ------------- ------------ ---------
Current assets
Inventories 15,635 - - 15,635
Trade and other receivables 27,524 2,456 52 30,032
Cash and cash equivalents 2,967 394 240 3,601
Current tax asset (193) 194 532 533
--------------- ------------- ------------ ---------
Total current assets 45,933 3,044 824 49,801
--------------- ------------- ------------ ---------
TOTAL ASSETS 88,864 22,921 1,179 112,964
=============== ============= ============ =========
LIABILITIES
Non-current liabilities
Lease liability 4,630 2,438 - 7,068
Deferred tax liability - 2,630 - 2,630
Total non-current liabilities 4,630 5,068 - 9,698
--------------- ------------- ------------ ---------
Current liabilities
Borrowings 7,750 - - 7,750
Lease liability 1,100 322 - 1,422
Trade and other payables 23,462 2,405 532 26,399
Total current liabilities 32,312 2,727 532 35,571
--------------- ------------- ------------ ---------
TOTAL LIABILITIES 36,942 7,795 532 45,269
=============== ============= ============ =========
NET ASSETS 51,922 15,126 647 67,695
=============== ============= ============ =========
Statement of Financial Position as at 30 June 2020
As at
Central 30 June
Brand Addition Facilisgroup operations 2020
--------------- ------------- ------------ ---------
GBP'000 GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Intangible assets 37,313 13,827 - 51,140
Property, plant and equipment 5,440 742 - 6,182
Deferred tax asset 167 - - 167
Total non-current assets 42,920 14,569 - 57,489
--------------- ------------- ------------ ---------
Current assets
Inventories 12,404 - - 12,404
Trade and other receivables 17,044 1,746 130 18,920
Cash and cash equivalents 3,101 2,412 4,736 10,249
--------------- ------------- ------------ ---------
Total current assets 32,549 4,158 4,866 41,573
--------------- ------------- ------------ ---------
TOTAL ASSETS 75,469 18,727 4,866 99,062
=============== ============= ============ =========
LIABILITIES
Non-current liabilities
Lease liability 5,082 306 - 5,388
Deferred tax liability - 1,904 - 1,904
Total non-current liabilities 5,082 2,210 - 7,292
--------------- ------------- ------------ ---------
Current liabilities
Borrowings 8,368 - - 8,368
Lease liability 879 124 - 1,003
Trade and other payables 14,837 2,004 806 17,647
Current tax liability 372 532 (45) 859
Total current liabilities 24,456 2,660 761 27,877
--------------- ------------- ------------ ---------
TOTAL LIABILITIES 29,538 4,870 761 35,169
=============== ============= ============ =========
NET ASSETS 45,931 13,857 4,105 63,893
=============== ============= ============ =========
Statement of financial position as at 31 December 2020
As at 31
Central December
Brand Addition Facilisgroup operations 2020
--------------- ------------- ------------ ----------
GBP'000 GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Intangible assets 37,839 16,178 - 54,017
Property, plant and equipment 5,558 3,424 120 9,102
Deferred tax asset 23 - 470 493
Total non-current assets 43,420 19,602 590 63,612
--------------- ------------- ------------ ----------
Current assets
Inventories 12,109 - - 12,109
Trade and other receivables 19,353 1,571 64 20,988
Cash and cash equivalents 5,677 538 851 7,066
Current tax asset 310 474 45 829
Total current assets 37,449 2,583 960 40,992
--------------- ------------- ------------ ----------
TOTAL ASSETS 80,869 22,185 1,550 104,604
=============== ============= ============ ==========
LIABILITIES
Non-current liabilities
Lease liability 4,893 2,661 91 7,645
Trade and other payables - 930 - 930
Deferred tax liability - 2,637 - 2,637
Total non-current liabilities 4,893 6,228 91 11,212
--------------- ------------- ------------ ----------
Current liabilities
Lease liability 1,096 218 20 1,334
Trade and other payables 22,995 2,181 599 25,775
Total current liabilities 24,091 2,399 619 27,109
--------------- ------------- ------------ ----------
TOTAL LIABILITIES 28,984 8,627 710 38,321
=============== ============= ============ ==========
NET ASSETS 51,885 13,558 840 66,283
=============== ============= ============ ==========
4. OPERATING EXPENSES - EXCEPTIONAL
Unaudited Unaudited Audited
Period ended Period ended Year ended
30 June 30 June 31 December
2021 2020 2020
--------------- --------------- -------------
GBP'000 GBP'000 GBP'000
Reorganisation and restructuring - - 430
Transaction costs - - 112
- - 542
=============== ================================================== =============
Exceptional items relate to the following:
-- reorganisation and restructuring - costs were incurred in
Brand Addition as a result of changes made to headcount to align
people costs with anticipated ongoing sales volumes; and
-- transaction costs - incremental external costs related to the
acquisition of software assets and a license.
5. INCOME TAX EXPENSE
The income tax expense for the period ended 30 June 2021 is
based upon management's best estimate of the weighted average
annual tax rate expected for the full year ending 31 December 2021.
The income tax expense is higher than the standard rate of 19% due
to higher standard income tax rates in overseas territories,
overseas losses carried forward and non-deductible expenses. The
income tax expense for the year ended 31 December 2020 was lower
than the standard rate due to the benefit in year from corporate
interest rate deductions that were previously disallowed for
taxation purposes.
6. EARNINGS PER SHARE
Basic and diluted earnings per share are calculated by dividing
the earnings attributable to equity shareholders by the weighted
average number of ordinary shares in issue during the year. As at
30 June 2020, no instruments with a potential or actual dilutive
impact were in issue and therefore diluted EPS was the same as
basic EPS. The impact of the potentially dilutive share options
issued under The Pebble Group Plc Long-Term Incentive Plan on 21
December 2020 and 8 June 2021 as detailed in note 12 is 0.01p for
the period ended 30 June 2021.
When calculating diluted earnings per share, the weighted
average number of shares is adjusted to assume conversion of
1,363,350 (2019: nil) of dilutive options granted to employees.
The calculation of basic and diluted profit per share is based
on the following data:
Statutory EPS
Unaudited Unaudited Audited
Period Period Year ended
ended ended 31 December
30 June 30 June 2020
2021 2020
------------ -------------- -------------
Earnings (GBP'000)
Earnings/(loss) for the purposes of basic
and diluted earnings per share
being profit/(loss) for the period attributable
to equity shareholders 1,420 (304) 4,080
------------ -------------- -------------
Number of shares
Weighted average number of shares for
the purposes of basic earnings/(loss)
per share 167,450,893 167,450,893 167,450,893
Weighted average dilutive effects of conditional
share awards 1,363,350 - -
Weighted average number of shares for
the purposes of diluted earnings/(loss)
per share 168,814,243 167,450,893 167,450,893
------------ -------------- -------------
Profit/(loss) per ordinary share (pence)
Basic profit/(loss) per ordinary share 0.85 (0.18) 2.44
Diluted profit/(loss) per ordinary share 0.84 (0.18) 2.44
------------ -------------- -------------
Adjusted EPS
The calculation of adjusted earnings per share is based on the
after tax adjusted operating profit after adding back certain costs
as detailed in the table below. Adjusted earnings per share figures
are given to exclude the effects of amortisation of acquired
intangible assets, share based payment charges and exceptional
items, all net of taxation, and are considered to show the
underlying performance of the Group.
Unaudited Unaudited Audited
Period Period Year ended
ended ended 31 December
30 June 30 June 2020
2021 2020
------------ -------------- -------------
Earnings (GBP'000)
Earnings/(loss) for the purposes of basic
and diluted earnings per share being adjusted
earnings/(loss) 1,808 (83) 4,965
------------ -------------- -------------
Number of shares
Weighted average number of shares for the
purposes of basic earnings/(loss) per share 167,450,893 167,450,893 167,450,893
Weighted average dilutive effects of conditional
share awards 1,363,350 - -
Weighted average number of shares for the
purposes of diluted earnings/(loss) per
share 168,814,243 167,450,893 167,450,893
------------ -------------- -------------
Adjusted earnings/(loss) per ordinary share
(pence)
Basic adjusted earnings/(loss) per ordinary
share 1.08 (0.05) 2.96
Diluted adjusted earnings/(loss) per ordinary
share 1.07 (0.05) 2.96
------------ -------------- -------------
The calculation of basic adjusted earnings per share is based on
the following data:
Unaudited Unaudited Audited
Period Period Year ended
ended ended 31 December
30 June 30 June 2020
2021 2020
------------- ------------- -------------
GBP'000 GBP'000 GBP'000
Profit/(loss) for the period attributable
to equity shareholders 1,420 (304) 4,080
------------- ------------- -------------
Add back/(deduct):
Amortisation charge on acquired intangible
assets 250 273 537
Share-based payments charge 229 - 14
Exceptional items - - 542
Tax effect of the above (91) (52) (208)
------------- ------------- -------------
Adjusted earnings/(loss) 1,808 (83) 4,965
============= ============= =============
7. INTANGIBLE ASSETS
Software
Customer and Development Work in
Goodwill relationships costs progress Total
--------- --------------- ----------------- ---------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
Balance at 31 December
2019 35,882 10,437 11,156 336 57,811
--------- --------------- ----------------- ---------- --------
FX difference on translation 184 658 142 - 984
Additions - - 920 134 1,054
Disposals - - (278) - (278)
Reclassifications - - 35 (35) -
Balance at 30 June
2020 36,066 11,095 11,975 435 59,571
--------- --------------- ----------------- ---------- --------
FX difference on translation (264) (951) (163) - (1,378)
Additions - - 4,946 159 5,105
Reclassifications - - 372 (372) -
--------- --------------- ----------------- ---------- --------
Balance at 31 December
2020 35,802 10,144 17,130 222 63,298
--------- --------------- ----------------- ---------- --------
FX difference on translation (86) (183) (76) - (345)
Additions - - 1,612 174 1,786
Balance at 30 June
2021 35,716 9,961 18,666 396 64,739
--------- --------------- ----------------- ---------- --------
Accumulated amortisation
Balance at 31 December
2019 - 635 7,009 - 7,644
--------- --------------- ----------------- ---------- --------
FX difference on translation - 33 80 - 113
Charge for the period - 273 676 - 949
Disposals - - (275) - (275)
--------- --------------- ----------------- ---------- --------
Balance at 30 June
2020 - 941 7,490 - 8,431
--------- --------------- ----------------- ---------- --------
FX difference on translation - (48) (116) - (164)
Charge for the period - 264 750 - 1,014
--------- --------------- ----------------- ---------- --------
Balance at 31 December
2020 - 1,157 8,124 - 9,281
--------- --------------- ----------------- ---------- --------
Charge for the period - 250 821 - 1,071
Balance at 30 June
2021 - 1,407 8,945 - 10,352
--------- --------------- ----------------- ---------- --------
Net book value
--------- --------------- ----------------- ---------- --------
At 31 December 2019 35,882 9,802 4,147 336 50,167
--------- --------------- ----------------- ---------- --------
At 30 June 2020 36,066 10,154 4,485 435 51,140
--------- --------------- ----------------- ---------- --------
At 31 December 2020 35,802 8,987 9,006 222 54,017
--------- --------------- ----------------- ---------- --------
At 30 June 2021 35,716 8,554 9,721 396 54,387
========= =============== ================= ========== ========
The Group tests annually for impairment, or more frequently if
there are indicators that goodwill might be impaired.
8. PROPERTY, PLANT AND EQUIPMENT
Leasehold Fixtures Computer Right-of-use
property and fittings hardware Assets Total
---------- -------------- ---------- ------------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
Balance at 31 December
2019 1,250 2,604 2,275 10,506 16,635
---------- -------------- ---------- ------------- --------
Impact of foreign exchange
translation 17 110 58 374 559
Additions 19 72 145 379 615
Disposals - (340) (133) (969) (1,442)
Balance at 30 June 2020 1,286 2,446 2,345 10,290 16,367
---------- -------------- ---------- ------------- --------
Impact of foreign exchange
translation (45) (115) (71) (401) (632)
Additions 71 79 434 3,474 4,058
Disposals - (9) - (568) (577)
Balance at 31 December
2020 1,312 2,401 2,708 12,795 19,216
---------- -------------- ---------- ------------- --------
Impact of foreign exchange
translation (7) (28) (18) (129) (182)
Additions - 20 237 269 526
Disposals - - - (175) (175)
---------- -------------- ---------- ------------- --------
Balance at 30 June 2021 1,305 2,393 2,927 12,760 19,385
---------- -------------- ---------- ------------- --------
Accumulated depreciation
Balance at 31 December
2019 1,036 2,108 1,865 5,545 10,554
---------- -------------- ---------- ------------- --------
Impact of foreign exchange
translation 7 88 44 208 347
Charge for the period 21 81 94 523 719
Disposals - (354) (120) (961) (1,435)
---------- -------------- ---------- ------------- --------
Balance at 30 June 2020 1,064 1,923 1,883 5,315 10,185
---------- -------------- ---------- ------------- --------
Impact of foreign exchange
translation (29) (89) (47) (178) (343)
Charge for the period 21 45 141 641 848
Disposals - - - (576) (576)
---------- -------------- ---------- ------------- --------
Balance at 31 December
2020 1,056 1,879 1,977 5,202 10,114
---------- -------------- ---------- ------------- --------
Impact of foreign exchange
translation (2) (20) (9) (30) (61)
Charge for the period 23 70 161 732 986
Disposals - - - (114) (114)
---------- -------------- ---------- ------------- --------
Balance at 30 June 2021 1,077 1,929 2,129 5,790 10,925
---------- -------------- ---------- ------------- --------
Net book value
---------- -------------- ---------- ------------- --------
Balance at 31 December
2019 214 496 410 4,961 6,081
---------- -------------- ---------- ------------- --------
Balance at 30 June 2020 222 523 462 4,975 6,182
---------- -------------- ---------- ------------- --------
Balance at 31 December
2020 256 522 731 7,593 9,102
---------- -------------- ---------- ------------- --------
Balance at 30 June 2021 228 464 798 6,970 8,460
========== ============== ========== ============= ========
Right-of-use assets - net
book value
---------- -------------- ---------- ------------- --------
Balance at 31 December
2019 4,800 21 140 - 4,961
---------- -------------- ---------- ------------- --------
Balance at 30 June 2020 4,855 - 120 - 4,975
---------- -------------- ---------- ------------- --------
Balance at 31 December
2020 7,267 227 99 - 7,593
---------- -------------- ---------- ------------- --------
Balance at 30 June 2021 6,710 184 76 - 6,970
---------- -------------- ---------- ------------- --------
9. INVENTORIES
Inventory levels are higher at the June period end compared to
December predominantly due to higher levels of stock in transit to
satisfy higher sales activity in the second half of the financial
year to December.
10. LEASES
Amounts recognised in the Consolidated Statement of Financial
Position
In addition to the right-of-use assets included within Note 8
above, the Consolidated Statement of Financial Position shows the
following amounts relating to leases:
Unaudited Unaudited Audited
Period Period Year ended
ended ended 31 December
30 June 30 June 2020
Lease liabilities 2021 2020
---------- ---------- -------------
GBP'000 GBP'000 GBP'000
Maturity analysis - contractual undiscounted
cash flows:
Less than one year 1,818 1,404 1,761
More than one year, less than two years 1,529 1,230 1,703
More than two years, less than three
years 1,330 1,053 1,403
More than three years, less than four
years 1,173 988 1,204
More than four years, less than five
years 1,193 926 1,185
More than five years 2,872 2,467 3,513
---------- ---------- -------------
Total undiscounted lease liabilities
at period end 9,915 8,068 10,769
Finance costs (1,425) (1,677) (1,790)
---------- ---------- -------------
Total discounted lease liabilities
at period end 8,490 6,391 8,979
---------- ---------- -------------
Lease liabilities included in the statement
of financial position
Current 1,422 1,003 1,334
Non-current 7,068 5,388 7,645
---------- ---------- -------------
8,490 6,391 8,979
---------- ---------- -------------
Amounts recognised in the Consolidated Income Statement
The Consolidated Income Statement shows the following amounts
relating to leases:
Unaudited Unaudited Audited
Period Period Year ended
ended ended 31 December
30 June 30 June 2020
2021 2020
---------- ---------- -------------
GBP'000 GBP'000 GBP'000
Depreciation charge - leasehold property 670 485 1,069
Depreciation charge - fixtures and fittings 40 16 51
Depreciation charge - computer hardware 22 22 44
---------- ---------- -------------
732 523 1,164
========== ========== =============
Interest expense (within finance expense) 197 222 433
========== ========== =============
11. FINANCIAL INSTRUMENTS
The fair values of all financial instruments included in the
Consolidated Statement of Financial Position are a reasonable
approximation of their carrying values.
12. SHARE-BASED PAYMENTS
The Group operates an equity-settled share-based payment plan
for certain employees of the Group under The Pebble Group Plc
Long-Term Incentive Plan (the 'LTIP').
On 8(th) June 2021, under the LTIP, the Group made awards of
960,510 conditional shares to certain Directors and employees.
The Group recognised total expenses of GBP229,000 (period ending
30 June 2020: GBPnil) in respect of equity-settled share-based
payment transactions for the period ended 30 June 2021.
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END
IR DKABDOBKDOCK
(END) Dow Jones Newswires
September 07, 2021 02:00 ET (06:00 GMT)
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