Pebble Group Plc · LSE:PEBB
Pebble — The Pebble Group — FY2019 Earnings Presentation
23 slides from Pebble's earnings presentation, April 2020
Slide 1: Full year results 2019 and COVID-19 update
Full year results 2019 and COVID-19 update April 2020
Slide 2: Introduction
Introduction Full year results 2019 and COVID-19 update Full year results 2019 ▪ We are pleased with the progress the Group has made in 2019 ▪ We present the financial and operational highlights for the year COVID-19 update ▪ We provide a further update on the impact of COVID-19 on the Group ▪ In Br
Slide 3: The Pebble Group: Two differentiated businesses
The Pebble Group Two differentiated businesses The Pebble Group Our focused businesses in the promotional products industry Product and services Technology and services Target market Large global brands SME promotional product distributors “Partners” • Design of corporate ranges and bespoke product
Slide 4: Highlights in 2019
The Pebble Group Highlights in 2019 The Group ▪ Major acquisition successfully integrated and delivering growth ▪ Successful IPO and Admission to AIM, raising a total of £135m and repaying all existing debt ▪ Experienced Board formed at IPO: Richard Law, Chairman; Yvonne Monaghan; Senior Independent
Slide 5: Highlights in 2019, KPIs
The Pebble Group Highlights in 2019, KPIs 1 2 3 Revenue Adjusted EBITDA Adjusted EPS Cash Debt £107m £15.2m 2.81p £8.9m £8.2m 2018 2019 £93m £10.1m (£6.3m) 0.92p (£70.3m) 2018 2019 2018 2019 2018 2019 2018 2019 +15.3% +50.5% +205.4% +8.5% -91.0% 1 Adjusted EBITDA is defined as operating profit adjus
Slide 6: 2019 income statement
2019 income statement Financial statements £’m 2019 2018 Variance Notes (restated) Revenue 107.2 93.0 14.2 ▪ +15.3%: FY Facilis £8.6m, organic growth BA £5.6m Gross profit 40.1 28.1 12.0 Gross profit % 37.4% 30.2% 7.2ppt ▪ 100% GP% in Facilis and +1.7 ppt from Brand Addition People & overhead (24.1)
Slide 7: 2019 Segmental analysis
2019 Segmental analysis Financial statements Brand Addition Facilisgroup 1 £’m 2019 2018 Variance £’m 2019 2018 Variance Revenue 97.9 92.3 5.6 Revenue 9.3 0.7 8.6 Gross margin 30.8 27.5 3.3 Gross margin 9.3 0.7 8.6 Gross margin % 31.5% 29.8% 1.7ppt Gross margin % 100% 100% - Adjusted EBITDA 10.7 10.
Slide 8: 2019 Cash flow
2019 Cash flow Financial statements £’m 2019 2018 Variance Notes Adjusted EBITDA 15.2 10.1 5.1 Movement in working capital 1.1 (1.4) 2.5 ▪ Includes £1.1m IPO related accruals Capital expenditure (2.1) (1.2) (0.9) ▪ BA £1.4m, Facilis £0.7m, 3rd party £1.0m, internal £1.1m Adjusted operating cash flow
Slide 9: 2019 Balance sheet
2019 Balance sheet Financial statements £’m 2019 2018 Variance Notes Non current assets 56.4 55.6 0.8 ▪ Goodwill from acquisitions £35.9m, £9.8m customer relationships, £4.1m software Inventories 8.0 7.4 0.6 ▪ Stock underwritten by BA clients Trade & other receivables 25.5 26.6 (1.1) ▪ Quality ‘Blue
Slide 10: 2019 Operational review: The Pebble Group
2019 Operational review The Pebble Group Revenue by business Adjusted EBITDA by business Revenue by geography 9% 13% 34% 28% ▪ Brand Addition ▪ Brand Addition ▪ UK ▪ Facilisgroup ▪ Facilisgroup ▪ Europe 66% ▪ US 29% 91% ▪ RoW 30% Commentary Commentary Commentary ▪ Product revenue in Brand Addition ▪
Slide 11: Operational reviews: 2019 highlights and 2020 updates
Operational reviews 2019 highlights and 2020 updates 10
Slide 12: Technology, Supply chain, Community
Technology Supply chain Community Technology and services to SME distributors 11
Slide 13: 2019 Operational review: Facilisgroup
2019 Operational review Facilisgroup Number of $’m Partner sales $’m Preferred purchases Partners through @ease through @ease 149 $801m $253m $701m $238m 119 127 $638m $196m 107 $545m $165m 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 ▪ New Partner growth continues with the quality ▪
Slide 14: Investments for growth - Facilisgroup
2019 Operational review Investments for growth - Facilisgroup Achieved Points of focus ▪ Successfully integrated into The Pebble Group in first Three clear points of focus in 2020 and beyond: full year since acquisition ▪ Responsibly increase our Partner numbers ensuring our ▪ Formalised the new lea
Slide 15: Consumer promotions and Corporate Programmes
Consumer promotions Corporate Programmes Supply Chain Webshop Creative Compliance. Platforms. Services. Sourcing & International Global Account Quality Control. Delivery. Management. Product and services to large corporates 14
Slide 16: 2019 Operational review: Brand Addition
2019 Operational review Brand Addition Clients with revenue Revenue by geography Revenue by sector > £1m 23 20 20 17 6% 13% ▪ Transport ▪ UK 14% 22% 31% ▪ Engineering ▪ Europe ▪ Technology ▪ US 24% ▪ Health & Beauty / ▪ RoW 24% 15% FMCG ▪ Financial Services 32% 19% ▪ Other 2016 2017 2018 2019 ▪ Top
Slide 17: Investments for growth – Brand Addition
2019 Operational review Investments for growth – Brand Addition Achieved Points of focus ▪ Existing client retention remains strong and revenue ▪ Navigating through the major impact of COVID-19 was expected to grow before COVID-19 ▪ Acted quickly to manage costs using government initiatives ▪ New cl
Slide 18: COVID-19 impact: 2020 activity update
COVID-19 impact 2020 activity update 17
Slide 19: COVID-19 impact: 2020 activity update, Facilisgroup
COVID-19 impact 2020 activity update, Facilisgroup Partner sales through @ease (Facilisgroup technology) Partner numbers and community strength ▪ Positive start to 2020, at the end of February, Partner sales ▪ Partner quality remains high with 9 new Partners added in processed through @ease +27% PY
Slide 20: COVID-19 impact: Summary
COVID-19 impact Summary Corporate Programme clients Consumer Promotions clients ~70% divisional sales ~30% divisional sales ▪ Positive start to 2020, heavily impacted in March due to ▪ Positive start to 2020, currently less impacted by COVID-19 COVID-19 ▪ > 70% of expected orders for the year have b
Slide 21: COVID-19 impact: Group actions
COVID-19 impact Summary Group actions ▪ The Group has quickly and responsibly faced the challenges presented and will continue to do so ▪ Balance sheet is strong, liquidity is good ▪ Utilisation of government initiatives to cover operational costs, where appropriate ▪ Temporary cost reductions imple
Slide 22: ESG: Building brands, Growing relationships, Strengthening businesses
ESG Building brands, Growing relationships, Strengthening businesses Our Group invests into a series of initiatives and activities to ensure a positive long-term impact on its stakeholders and its environments. Investing in People, Planet, Product. Accreditations Business initiatives Other ESG activ
Slide 23: Outlook
Outlook ▪ Brand Addition’s Corporate Programmes activity is likely to remain severely affected for at least the duration of the lockdown restrictions ▪ Brand Addition’s Consumer Promotions activity expected to remain broadly on track ▪ Facilisgroup expected to remain broadly on track ▪ The managemen