Pebble Group Plc · LSE:PEBB
Pebble — The Pebble Group — H1 2022 Earnings Presentation
30 slides from Pebble's earnings presentation, Sep 6, 2022
Slide 1: Half Year Results 2022
HY 22 Half Year Results 2022 6 September 2022
Slide 2: Introduction: Claire Thomson, Chris Lee
THE PEBBLE GROUP Introduction Group Claire Thomson Chris Lee CFO CEO 2
Slide 3: Circa $50bn promotional products market
$50bn Circa promotional products market Creativity, Sustainability, Technology.
Slide 4: The industry: c.$50bn promotional products market
The industry c.$50bn promotional products market Industry leader in providing digital commerce to support growth and transactional efficiencies between Distributors, Suppliers and the End customer Suppliers Distributors Brand, End Manufacturers and decorators Highly fragmented Often product speciali
Slide 5: Highlights HY 22
The industry Highlights HY 22 c.$50bn promotional products market The Pebble Group Growth HY 22 v HY 21 +29% Revenue +52% Adjusted EBITDA creativity, sustainability, technology Facilisgroup Uninterrupted growth Strategy to scale revenue continues Brand Addition New client wins from 2020 and 2021 sup
Slide 6: Highlights HY 22, KPIs
THE PEBBLE GROUP Highlights HY 22, KPIs Revenue Adjusted EBITDA1 Basic adjusted EPS2 Net cash3 +28.8% +52.3% +74.1% +£4.1m 1.88 £6.7m £60.3m £46.8m £4.4m 1.08 HY 21 HY 22 HY 21 HY 22 HY 21 HY 22 2021 2022 £(0.1m) 1 Adjusted EBITDA is defined as operating profit adjusted to add back depreciation of p
Slide 7: Continued revenue growth in both businesses
THE PEBBLE GROUP Key financial dynamics Continued revenue Revenue by business % EBITDA by business % growth in both 12% HY 22 44% HY 22 businesses 12% HY 21 45% HY 21 High EBITDA margins in 88% 55% 56% 88% Facilisgroup Brand Addition Brand Addition Facilisgroup Facilisgroup Commentary Commentary § F
Slide 8: Income statement HY 22
THE PEBBLE GROUP Income statement HY 22 £’m HY 22 HY 21 FY 21 Revenue 60.3 46.8 115.1 +29% Revenue growth Gross profit 23.2 17.2 42.0 Detail in segmental analysis People & overhead (15.3) (11.6) (24.5) Adjusted EBITDA pre-Head Office 7.9 5.6 17.5 Head office costs (1.2) (1.2) (2.1) EBITDA growth Adj
Slide 9: Cash flow HY 22
THE PEBBLE GROUP Cash flow HY 22 £’m HY 22 HY 21 FY 21 Adjusted EBITDA 6.7 4.4 15.4 Movement in working capital (14.8) (12.7) (2.8) Increased trading in Brand Addition driving growth in trade receivables Capital expenditure (3.6) (2.2) (5.3) Continued investment into technology products. Facilisgrou
Slide 10: Balance Sheet HY 22
THE PEBBLE GROUP Balance Sheet HY 22 £’m HY 22 HY 21 FY 21 Non-current assets 69.4 63.2 63.9 Goodwill and intangibles: £45.3m, Software: £13.5m, *PPE: £10.2m, *DT asset £0.4m Inventories 16.0 15.6 10.1 Brand Addition: Blue-chip backed inventories and receivables proportional to revenue Trade & other
Slide 11: Facilisgroup
Facilisgroup is focused on transforming the promotional products industry through digital commerce that enables customers to benefit from significant business efficiencies and supply chain advantages - HY 22 Results - Business model - Commercio overview - Progress towards scale
Slide 12: Segmental Analysis HY 22
THE PEBBLE GROUP Segmental Analysis HY 22 £’m HY 22 HY 21 FY 21 Commentary Recurring Revenue 7.0 5.4 12.2 +30% ARR in GBP, +21% in USD home currency Other Revenue 0.4 0.2 0.5 Total Revenue 7.4 5.6 12.7 People & overhead (3.9) (2.6) (5.1) Growth supports revenue aspirations and return to community ev
Slide 13: High visibility of recurring revenues
THE PEBBLE GROUP Recurring Revenues High visibility of Revenues £’m Revenues $’m recurring revenues with a loyal and 7.1 9.7 4.7 4.7 growing Partner 4.3 7.4 5.7 6.0 6.1 (customer) base 5.6 9.5 5.1 7.8 4.6 6.4 5.9 3.1 4.2 FY 18 FY 19 FY 20 FY 21 HY 22 FY 18 FY 19 FY 20 FY 21 HY 22 H1 H2 H1 H2 Comment
Slide 14: Key indicators all supporting revenue growth
THE PEBBLE GROUP Partner Activity Key indicators all Syncore Partner numbers # Gross Merchandise Value $’m Preferred Supplier Purchases $’m supporting Revenue 200 + 6 210 + 8 216 growth 693 482 175 139 141 441 149 120 388 127 630 206 249 134 380 457 122 116 342 286 107 2018 2019 2020 2021 YTD 22 FY
Slide 15: Our business model, Facilisgroup: Recurring revenues
THE PEBBLE GROUP Our business model, Facilisgroup Recurring revenues Providing technology and services to support growth and SYNCORE efficiencies in the promotional products market 1 Marketing Fund (~35% ARR FY 21) As a consolidator of +$1bn of spend, quality, contracted suppliers support the Facili
Slide 16: Ecommerce stores: industry focused ecommerce for Partners
THE PEBBLE GROUP Ecommerce stores Bringing industry focused ecommerce to our Partners and beyond Benefits for the Distributor Opportunity • Technology to efficiently build and operate • ~25% of industry sales (and rising) are transacted ecommerce stores, increasing distributor sales through ecommerc
Slide 17: Milestones – internal aspirations to 2024 and beyond
THE PEBBLE GROUP Milestones – our internal aspirations to 2024 and beyond Internal aspirations, YTD 2022 progress 2020 (A) 2021 (A) 2022 2023 2024 Customer numbers 1 175 206 330 575 950 # Beyond 263 Aspiration 2024 Gross 2024 Merchandise - Gains in existing market Value $50m 2 1.0 1.1 1.2 1.5 1.9 $’
Slide 18: Commercio increases our income streams
THE PEBBLE GROUP Growing our addressable market and income streams Income streams # Existing Partners Commercio 263 New Customers increases our 31 income streams and Syncore Partners 206 14 grows through both New Customers existing Syncore Partners and new 206 218 customers 31 Dec 2021 5 Sept 2022 A
Slide 19: Brand Addition
Brand Addition provides full-scale promotional products services that help global brands build culture, awareness and meaningful connections. We extend our clients’ values in thoughtful, sustainable, globally conscious ways to create branded moments that people love - HY 22 Results - Progress for FY
Slide 20: Segmental Analysis HY 22
THE PEBBLE GROUP Segmental Analysis HY 22 £’m HY 22 HY 21 FY 21 Commentary Revenue 52.9 41.1 102.4 Excellent growth from maturing new contract wins and increase in demand as working patterns stabilise Gross profit 15.8 11.6 29.3 People & overhead (11.4) (9.1) (19.4) Supporting revenue growth Adjuste
Slide 21: Revenue diversity across sectors and geographies
THE PEBBLE GROUP Revenue Diversity Strong sectors, Revenue by client sector % Revenue by destination % across multiple 17% 4% 8% 9% HY 22 18% 20% HY 22 geographies 4% 8% HY 21 14% HY 21 17% 9% 28% 20% 19% 25% 22% 22% 22% 15% 38% 40% 21% Engineering Transport Financial Services UK Europe Other US RoW
Slide 22: Continued growth expected in FY 22
Continued growth expected in FY 22 £98m £73m £102m £115-£120m 1. Consumer promotions - high growth from FY 21 is targeted to be maintained FY 21: full and immediate return above FY 19 2. Corporate Programmes – like for like - high retention levels, more clients returning to FY 19 10 levels 3 46 3. C
Slide 23: Environmental, Social and Governance (ESG)
THE PEBBLE GROUP Environmental, Social and Governance (ESG) Our four cornerstones: ENVIRONMENTAL SOCIAL GOVERNANCE Impact of our business on the environment and our communities ENVIRONMENTAL SOCIAL GOVERNANCE Diversity, health, well-being and engagement ENVIRONMENTAL SOCIAL GOVERNANCE Board independ
Slide 24: How ESG integrates into our business
THE PEBBLE GROUP How ESG integrates into our business BUSINESS ESG CORNERSTONES BUSINESS ACTIVITY KEY STAKEHOLDER VALUE CLIENTS AND PARTNERS Trusted suppliers with high standards, strict ethical values and responsible business practices Supply chain transparency and accountability Responsibly source
Slide 25: Group Outlook
THE PEBBLE GROUP Group Outlook The Pebble Group Facilisgroup Brand Addition Our ambition is to enter 2023 Through our order visibility We are continuing to with an increasing customer and current activities, we deliver on our stated base for Commercio expect Brand Addition strategies revenues in FY
Slide 26: Appendix
Appendix - Financial Guidance - Brand Addition typical working capital cycle
Slide 27: Financial Guidance
THE PEBBLE GROUP Financial Guidance § CAPITAL EXPENDITURE: § CURRENCY RATES: (excluding amounts capitalised under IFRS 16) Actual Actual Est Actual Actual Est £:US$ 2020 2021 2022 £m 2020 2021 2022 Income Statement (average rate) 1.28 1.38 1.30 Tangible 0.8 0.7 1.2 Balance Sheet (year end rate) 1.36
Slide 28: Order receipt and working capital dynamics
THE PEBBLE GROUP Order receipt and working capital dynamics Typical calendar Typical annual order cycle Typical working capital cycle year order receipt Brand Addition Total cycle and working July / Aug High Corporate Programmes capital dynamics in Consumer Promotions Brand Addition Low Jan Dec Dec
Slide 29: Partner Activity, bridge of Partner growth in 2022
THE PEBBLE GROUP Partner Activity, bridge of Partner growth in 2022 High retention Syncore Partner numbers # Syncore Partners bridge # rates, supporting 218 210+8 218 growth +8 200 +17 -1 175 149 127 -6 2018 2019 2020 2021 YTD 200 § New: Additional Partners implemented § Acquired: Partners businesse
Slide 30: Building brands. Growing relationships. Strengthening businesses.
Building brands. Growing relationships. Strengthening businesses.