TIDMPEBB
RNS Number : 7331U
Pebble Group PLC (The)
07 December 2021
7 December 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 "Company" or the "Group")
AIM: PEBB
TRADING UPDATE
Results for FY 21 expected to be at least in line with market
expectations
The Board of The Pebble Group, a leading provider of technology,
services and products to the global promotional products industry,
is pleased to announce that the Group's results for the year ending
31 December 2021 ("FY 21") are expected to be at least in line with
market expectations.
Both the Group's businesses, Facilisgroup and Brand Addition,
continue to trade well in H2 21.
Highlights
-- By 31 December 2021, we expect our Facilisgroup FY 21 milestones
to be met with Partners, implemented or contracted and awaiting
implementation, to be circa 205; GMV to be greater than
$1.10bn; and spend with Preferred Suppliers to be circa
$0.33bn
-- Revenue generation from Facilisgroup's Commercio product
is expected to start in Q2 22
-- We expect Brand Addition's revenue in FY 21 to be circa
GBP100m (FY 20 GBP72.6m, FY 19 GBP97.9m), representing an
immediate and full recovery from the demand challenges of
2020
-- At the year end, 31 December 2021, we expect the net cash
balance, excluding IFRS 16 lease liabilities, to be no less
than GBP9.0m (31 December 2020: GBP7.1m)
-- The Board expects the Group's results for FY 21 to be at
least in line with market expectations
Business update
Facilisgroup
Alongside our FY 20 Results announced in March 2021,
Facilisgroup shared its aspiration to be the technology leader in
the North American promotional products market and in doing so
become a $50m annual recurring revenue (ARR) business by the end of
2024. We set annual milestones to this goal for Partner (customer)
numbers; Gross Merchandise Value (GMV), processed through our
technology; and spend by Partners through our Preferred Supplier
network. By 31 December 2021, we expect our FY 21 milestones to be
met with Partners, implemented or contracted and awaiting
implementation, to be circa 205; GMV to be greater than $1.10bn;
and spend with Preferred Suppliers to be circa $0.33bn. These
indicators demonstrate the continued progress of the business and,
together with its excellent retention record, underpin
Facilisgroup's financial prospects into 2022.
Earlier in 2021, we launched, in beta form, our second
technology product, an ecommerce platform focused on the
promotional products market. Branded Commercio, this product allows
promotional product distributors to easily implement bespoke
ecommerce stores for their customers. We plan to exit beta stage in
Q2 22, when the revenue generation from this product is expected to
start. Our initial pricing model will be based upon the number of
stores utilised by each customer, in effect increasing our
percentage fee per dollar of GMV.
Facilisgroup has a highly profitable business model currently
achieving EBITDA margins of more than 50%. Having set out our
growth strategy and invested into our technology and team through
2020 and 2021, we intend to accelerate spend in our sales and
marketing activities in 2022 and 2023 to support the achievement of
our $50m ARR aspiration. As a result of this further investment in
growth, we expect historic EBITDA margins to reduce by circa 5% to
10% in these years, with the belief that delivering ARR scale in
Facilisgroup creates significant value.
Brand Addition
Brand Addition remains focused on its core strategy to win,
grow, and retain multi-country out-sourced contracts, often valued
in millions of pounds per year, with many of the world's leading
brands. These businesses trust Brand Addition to protect their
brands and create lasting impressions with their employees,
customers, and wider stakeholders, through the strategic use of
promotional merchandise.
We expect Brand Addition's revenue in FY 21 to be circa GBP100m
(FY 20 GBP72.6m, FY 19 GBP97.9m), representing an immediate and
full recovery from the demand challenges of 2020. This has been
achieved against a challenging operational backdrop carried forward
from COVID-19 lockdowns, the cross-border trading changes resulting
from Brexit, and the global freight and supply chain disruption.
This performance is a testament to the quality and determination of
the whole team and the value clients place upon the services
delivered by the business.
Looking ahead, new client contracts won in 2021, which are
currently being implemented, are expected to contribute positively
to FY 22 revenues.
Environmental, Social and Governance ("ESG")
We were pleased to publish our first ESG Report in October 2021,
which set out the strategy and framework of our approach to ESG.
The Group is committed to taking an industry leading position on
ESG with the Board and senior management fully committed to
building a business which invests responsibly in long term
stakeholder relationships.
Balance sheet and cash
The Group's cash balances and working capital cycle has followed
its usual and expected path with the working capital requirement
reducing in Q4 20. At 6 December 2021, the Group had net cash
excluding IFRS 16 lease liabilities of GBP8.8m, with no monies
drawn down from the Company's GBP10.0m committed revolving credit
facility. At the year end, 31 December 2021, we expect the net cash
balance, excluding IFRS 16 lease liabilities, to be no less than
GBP9.0m (31 December 2020: GBP7.1m).
Outlook
The Board expects the Group's results for FY 21 to be at least
in line with market expectations.
The Group has a focused strategy to invest in scaling
Facilisgroup's recurring revenues, alongside the continued
attraction and retention of major contracts at Brand Addition and
looks forward to updating stakeholders on progress against these
goals throughout 2022.
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 +44 (0) 20 7184 4384
Berenberg (Corporate Broker)
Chris Bowman / Jen Clarke / Arnav
Kapoor +44 (0) 20 3207 7800
Belvedere Communications (Financial
PR) +44 (0) 7715 769 078
Cat Valentine +44 (0) 7967 816 525
Keeley Clarke thepebblegrouppr@belvederepr.com
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.
The Pebble Group aims to act responsibility through effective
management of its Environmental, Social and Governance ("ESG"). To
find out more, read our ESG report - The Pebble Group ESG report
2021 .
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END
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December 07, 2021 01:59 ET (06:59 GMT)
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