Pebble Group Plc · LSE:PEBB
Pebble — The Pebble Group — HY 2024 Earnings Presentation
31 slides from Pebble's earnings presentation, Sep 9, 2024
Slide 1: Half Year Results 2024
Half Year Results 2024 9 September 2024 1
Slide 2: Introduction
Introduction Chris Lee Claire Thomson CEO CFO 2
Slide 3: Why are promotional products used?
Why are promotional products used? Businesses of all sizes, sectors and geographies use products, branded with their name or key message in order to build culture, brand awareness and meaningful connections with their stakeholders, be it existing or potential customers, employees or suppliers. 3
Slide 4: Market Opportunity $50bn
Market Businesses of all sizes, sectors and geographies use products, $50bn GLOBAL INDUSTRY Opportunity branded with their name or key message. c. The fragmented North American market is c.$24bn of this total VISIBILITY OF SALES OF Our vision is to provide digital commerce, products and PROMOTIONAL
Slide 5: Investment highlights
Investment highlights Technology and sustainability expertise Established global footprint Added new skillsets to an experienced management team Excellent cash conversion Strong, debt free balance sheet 5
Slide 6: Highlights
Highlights HY 24 Results Evolved leadership Revenue recovered well Group Adjusted EBITDA in line following challenging H2 23 with prior year at £7.4m Key indicators of GMV (+5%) (HY 23: £7.5m) and Preferred Supplier High client retention levels purchases (+6%) continue Continued Gross Margin expansi
Slide 7: Highlights HY 24 KPIs
Highlights HY 24, KPIs Revenue Adjusted EBITDA1 Operating profit Basic EPS Net cash2 £60.8m £7.4m £3.2m 1.36p £4.9m 1.37p 1.36p £4.9m £7.5m £7.4m £63.3m £60.8m £3.2m £4.2m £3.3m HY 23 HY 24 HY 23 HY 24 HY 23 HY 24 HY 23 HY 24 HY 23 HY 24 7
Slide 8: Key Financial Dynamics
Key Financial Dynamics Revenue by business Adjusted EBITDA by business % % Facilisgroup SAAS revenue HY 24 HY 24 delivering high EBITDA 15% 48% margins 14% HY 23 49% HY 23 86% 51% 52% 85% Brand Addition Brand Addition Facilisgroup Facilisgroup Commentary Commentary Facilisgroup subscription-based re
Slide 9: Income Statement
Income Statement HY 24 £’m HY 24 HY 23 FY 23 Commentary Revenue 60.8 63.3 124.2 -4 Gross profit 27.2 27.1 54.2 % People & overhead (18.4) (18.3) (35.8) Adjusted EBITDA pre-Head Office 8.8 8.8 18.4 Head office costs (1.4) (1.3) (2.4) +2 Adjusted EBITDA 7.4 7.5 16.0 Depreciation and amortisation (5.0)
Slide 10: Balance Sheet
Balance Sheet HY 24 £’m HY 24 HY 23 FY 23 Non-current assets 69.1 69.4 69.9 High quality Inventories 15.5 14.8 11.9 Trade & other receivables 32.9 36.9 30.1 working capital Cash & cash equivalents 4.9 4.2 15.9 converts Current assets 53.3 55.9 57.9 efficiently to Total assets 122.4 125.3 127.8 cash
Slide 11: Cash Flow
Cash Flow HY 24 £’m HY 24 HY 23 FY 23 Commentary Adjusted EBITDA 7.4 7.5 16.0 +£0.6 Movement in working capital (9.4) (9.7) 0.7 m Capital expenditure (3.7) (4.0) (8.6) Leases (0.8) (0.9) (1.6) Operating cash flow (6.5) (7.1) 6.5 Taxes paid (1.6) (1.5) (2.5) Net finance costs (0.3) (0.3) (0.6) Divide
Slide 12: Use of capital from our cash generation
Use of capital from our cash generation Principles of cash utilisation Managing the business: Further shareholder value opportunities: In line with prior years Capital expenditure reducing, returns increasing 1. 2. 3. 4. 5. 6. Balance Sheet Working capital Capital Capital expenditure Dividend Other
Slide 13: Facilisgroup, the network that powers your business for success
Facilisgroup, the network that powers your business for success Visit facilisgroup.com to learn more Suppliers Distributors Brands 13
Slide 14: Growing GMV through technology
Growing GMV through technology Distributor market Our approach Measuring Success Market size $8.0bn Top 100 GMV and the associated Attach Rate Translating the income collected against our Gross c.$80.0m Currently not in scope c.$24bn North American Market Merchandise Value (“GMV”) into an ‘Attach Ra
Slide 15: Results Summary
Results Summary H2 H1 Revenue EBITDA Growth and margins 47 USD’m USD’m 15 10.9 10.8 % 5.7 % 9.7 6.2 6.4 6.1 4.1 Revenue CAGR EBITDA margin 9.6 11.3 11.3 4-years to 30 June 2024 HY 24 7.8 4.2 4.6 5.3 5.4 6.4 3.6 FY 20 FY 21 FY 22 FY 23 HY 24 FY 20 FY 21 FY 22 FY 23 HY 24 Syncore Partners GMV Preferre
Slide 16: Partner retention levels remain strong
Partner numbers bridge Partner As at 18 Mar 2024 (FY 23 Results Announcement) Progress from 18 Mar 2024 to 6 Sept 2024 2024 : Partners bridges, YTD New sales team building experience and pipeline to support retention levels # responsible growth Higher level of acquisition activity than previous year
Slide 17: Progress in 2024
Progress in 2024 1. 2. 3. 4. Strategies Support existing Partners’ Winning more Partners, Concentrating Partner Bringing new technology to growth and hence the GMV gaining market share within purchases through our market to grow the services to throughput of their our existing TAM Preferred Supplier
Slide 18: Brand Addition end-to-end creative branded merchandise agency
Brand Addition is an end-to-end creative branded merchandise agency that helps global brands build culture, awareness and meaningful Visit brandaddition.com to learn more connections with their customers, employees and communities. Suppliers Distributors Brands 18
Slide 19: Results Summary
Results Summary Revenue Gross profit margins EBITDA £’m % £’m H2 H2 64 33% 52 Guidance 7.1 H1 61 H1 5.0 7.4 44 34.1 35.3 54 29.2 30.7 4.8 41 53 52 28.6 4.4 4.5 4.6 29 2.5 FY 20 FY 21 FY 22 FY 23 HY 24 FY 20 FY 21 FY 22 FY 23 HY 24 FY 20 FY 21 FY 22 FY 23 HY 24 Revenue by client sector Revenue by des
Slide 20: HY 24 revenues stable
HY 24 revenues stable Revenue by client sector Client retention HY 24 was in line with 100% Brand Addition Revenue HY 24 vs HY 23 management expectations, with £’m of top 10 clients from 2022 Consumer -1.7 order intake to date following Experienced team anticipated trends 0.7 Technology Long term cl
Slide 21: Progress in 2024
Progress in 2024 1. 2. 3. Client retention Attracting new clients Gross margin management 21
Slide 22: Advancing our commitment to sustainability through our ESG strategy
Advancing our commitment to sustainability through our ESG strategy Executive Scan the QR code to watch our interview: Kirsten Motyl Senior ESG officer interview Why ESG is important to The Pebble Group Our four ESG cornerstones ESG priorities for our two businesses: • Facilisgroup • Brand Addition
Slide 23: Building an industry community through Facilisgroup
Building an industry community through Facilisgroup Uniting the industry community to make a difference Giving back to the local community Building an industry community Educating Partners and Supporting women to thrive, network and achieve their aspirations in the industry suppliers in the industry
Slide 24: Group Outlook
Group Outlook FY 24 Group results expected to be in line with markets expectations Robust cash position supporting growing shareholder returns in a $50bn global industry Welcome appointment of Anne de Kerckhove as our new Non-Executive Chair 24
Slide 25: Investment highlights
Investment highlights Technology and sustainability expertise Established global footprint Added new skillsets to an experienced management team Excellent cash conversion Strong, debt free balance sheet 25
Slide 26: Appendix
Appendix Building brands. Growing relationships. Strengthening businesses. 26
Slide 27: Segmental Analysis, home currency USD
Segmental Analysis, home currency USD HY 24 USD’m HY 24 HY 23 FY 23 Commentary Recurring Revenue 10.7 10.6 21.2 Other Revenue 0.6 0.7 1.0 Total Revenue 11.3 11.3 22.2 People & overhead (5.9) (6.0) (11.2) Adjusted EBITDA 5.4 5.3 11.0 Depreciation and amortisation (4.4) (2.3) (5.5) Share-based payment
Slide 28: Segmental Analysis, reporting currency GBP
Segmental Analysis, reporting currency GBP HY 24 £’m HY 24 HY 23 FY 23 Commentary Recurring Revenue 8.5 8.6 17.0 Other Revenue 0.4 0.6 0.9 Total Revenue 8.9 9.2 17.9 People & overhead (4.7) (4.9) (9.0) Adjusted EBITDA 4.2 4.3 8.9 Depreciation and amortisation (3.4) (1.8) (4.4) Share-based payments c
Slide 29: Segmental Analysis
Segmental Analysis HY 24 £’m HY 24 HY 23 FY 23 Commentary Revenue 51.9 54.2 106.3 Gross profit 18.3 18.0 36.3 People & overhead (13.7) (13.5) (26.8) Adjusted EBITDA 4.6 4.5 9.5 Depreciation and amortisation (1.5) (1.5) (3.0) Share-based payments charge 0.4 (0.3) (0.3) Operating profit 3.5 2.7 6.2 Re
Slide 30: Financial Guidance
Financial Guidance CAPITAL EXPENDITURE: CURRENCY RATES: (excluding amounts capitalised under IFRS 16) Actual Actual Actual Est Actual Actual Est £m 2022 2023 2024 £:US$ 2021 2022 2023 2024 Tangible 0.9 0.9 1.0 Income Statement (average rate) 1.38 1.24 1.24 1.30 Intangible 6.5 7.6 6.8 Balance Sheet (
Slide 31: Building brands. Growing relationships. Strengthening businesses.
Building brands. Growing relationships. Strengthening businesses. 31