Business
Trading update
Trading update.
About this update from Pebble Group Plc
[{"type":"text","content":"\n\n22 November 2023 \nTHE PEBBLE GROUP PLC \n(\"The Pebble Group\" or the \"Group\") \n \nTrading update\n \nThe Pebble Group (AIM: PEBB, OTCQX: PEBBF), a leading provider of digital commerce, products and related services to the global promotional products industry, is today updating the market on its expected performance in the year to 31 December 2023 (\"FY 23\").\n \nWhilst we expect Facilisgroup to achieve revenue growth in the year, order intake at Brand Addition has been lower than anticipated and Group revenues for FY 23 are expected to be approximately £124m (FY 22: £134.0m). As the Group has continued to generate stronger gross margins in FY 23 compared to the prior year, the impact of the revenue reduction is expected to be partially mitigated, and deliver Group EBITDA of approximately £16m (FY 22: £18.0m), maintaining Group EBITDA margins close to FY 22.\n \nOur cash position remains robust, and the Group expects net cash as at 31 December 2023 to be no less than prior year net cash of £15.1m, after continued capital investment into Facilisgroup and the payment of a dividend of £1.0m in June 2023.\n \nThe Group remains strong financially, and both of our businesses are strategically well-placed within their respective markets.\n \nFacilisgroup: providing a digital commerce platform for promotional products businesses in North America\n \nAt Facilisgroup, despite the difficult market conditions, FY 23 revenues are expected to increase by approximately 10% compared to prior year of USD20.4m (GBP16.6m).\n \nWe expect the Gross Merchandise Value (\"GMV\") transacted through our technology by Partners (customers) to be approximately $1.4bn in FY 23, slightly ahead of FY 22. This reflects a more challenging economic environment in the second half of the year and consequently the proportion of our income, based on in-year Partner activity, has impacted our overall rate of growth in FY 23.\n \nFacilisgroup EBITDA margins are expected to be approximately 50% (FY 22: 54.2%) as we continue to invest in our technology, sales and marketing strategies.\n \nPartner (customer) retention rates continue to be market leading and consistent with prior year rates of 96%. The total number of Partners at 21 November 2023 is 242 (31 December 2022: 225), with an enlarged...