Pebble Group Plc · LSE:PEBB
Pebble — The Pebble Group — FY2020 Earnings Presentation
28 slides from Pebble's earnings presentation, Mar 23, 2021
Slide 1: Full Year Results 2020
23 March 2021 Full Year Results 2020 Building brands. Growing relationships. Strengthening businesses.
Slide 2: Introduction
INTRODUCTION Chris Lee Claire Thomson CEO CFO 2
Slide 3: Facilisgroup and Brand Addition focus
Facilisgroup focuses on providing Brand Addition focuses on providing technology enabling customers to promotional products and related benefit from significant business services under contract to some of the efficiency and gain meaningful supply world's most recognisable brands chain advantage
Slide 4: Servicing the promotional product industry
Servicing the promotional product industry Facilisgroup § Technology platform for mid-sized distributors in North America, enabling business efficiency Brand, End Suppliers Distributors § Consolidates spend to create meaningful Manufacturers and customer supply chain advantage Highly fragmented deco
Slide 5: Highlights FY 2020
Highlights FY 2020 § A clear focus on clients, culture and cash enabled the Group to navigate the unprecedented challenges in 2021 § Our belief that the differentiated market positions and strategies of the Group’s businesses continue to provide significant opportunities for growth has been reinforc
Slide 6: Highlights FY 2020, KPIs
THE PEBBLE GROUP Highlights FY 2020, KPIs Revenue Adjusted EBITDA1 Adjusted EPS2 Cash -23.1% -35.5% +0.15p -£1.8m 1 Adjusted EBITDA is defined as operating profit adjusted to add back depreciation of property, plant and equipment, amortisation, share based payments charge and exceptional items £107.
Slide 7: Key financial dynamics
THE PEBBLE GROUP Key financial dynamics High EBITDA Revenue by business Adjusted EBITDA by business, excluding Head Offices costs Typical working capital cycle margins of July / Aug Facilisgroup High Predictable Brand Addition 88% Brand Addition 46% Low Dec Dec in-year working Facilisgroup 12% Facil
Slide 8: FY 2020 Operational review
THE PEBBLE GROUP FY 2020 Operational review £’m Audited FY 2020 FY 2019 Variance Revenue 82.4 107.2 (24.8) Navigated impact Gross profit 31.0 40.1 (9.1) Detail in of COVID-19, Gross profit % 37.6% 37.4% 0.2 ppt segmental analysis remaining People & overhead (19.8) (24.3) 4.5 profitable and Adjusted
Slide 9: Segmental Analysis FY 2020
THE PEBBLE GROUP Segmental Analysis FY 2020 £’m Audited FY 2020 FY 2019 Variance £’m Audited FY 2020 FY 2019 Variance Recurring Revenue 9.3 8.2 1.1 Other Revenue 0.5 1.1 (0.6) Total Revenue 9.8 9.3 0.5 Total Revenue 72.6 97.9 (25.3) Gross profit 9.8 9.3 0.5 Gross profit 21.2 30.8 (9.6) Gross profit
Slide 10: Cash flow FY 2020
THE PEBBLE GROUP Cash flow FY 2020 £’m Audited FY 2020 FY 2019 Variance Adjusted EBITDA 9.8 15.2 (5.4) Movement in working capital excluding IPO accruals 1.7 (2.8) 4.5 Brand Addition sales reduction has positive impact on w/c Capital expenditure excluding acquisition of intangible assets (3.1) (2.1)
Slide 11: Balance Sheet FY 2020
THE PEBBLE GROUP Balance Sheet FY 2020 £’m Audited FY 2020 FY 2019 Variance Non current assets 63.6 56.4 7.2 Goodwill and intangibles: £44.8m, Software: £9.2m, PPE: £9.1m, DT asset £0.5m Inventories 12.1 8.0 4.1 FY20 includes £5.3m new business, with corresponding accrual in Trade and other payables
Slide 12: Facilisgroup focuses on providing technology
Facilisgroup focuses on providing technology, enabling customers to benefit from significant business efficiency and gain meaningful supply chain advantage
Slide 13: Our business model: Recurring revenues
THE PEBBLE GROUP Our business model Recurring revenues Subscriptions for Order Workflow (~75% ARR FY20) CRM, Product Search and Order processing Facilisgroup efficiently manages the enquiry to invoice workflow. Technology and Services Fees are fixed at the beginning of each year based on prior year
Slide 14: High visibility of recurring revenues with a growing customer base
THE PEBBLE GROUP Recurring Revenues High visibility of Revenues £’m Year end Partner numbers # recurring revenues 1.5 1.1 0.5 175 1.2 with a growing 7.5 8.2 9.3 127 149 customer base 7.0 119 2017 2018 2019 2020 2017 2018 2019 2020 Other Revenue Recurring Revenues Commentary Commentary § 13% increase
Slide 15: High quality partners under long-term relationships
THE PEBBLE GROUP Partner Activity 2017 2018 2019 2020 High quality Gross Merchandise Value $’bn Preferred Supplier Purchases $’bn Percentage of Partners by GMV growth % 75% partners under 1.0 0.3 long-term 0.2 0.3 50% 0.8 0.2 relationships 0.7 0.6 25% 0% 2017 2018 2019 2020 2017 2018 2019 2020 > -30
Slide 16: Software assets acquisition Dec 2020
Software assets acquisition 1. Expand the subscription services offered to current Partners Dec 2020 Multiple The acquisition will expand the services offered 2. Offering technology services to recurring by Facilisgroup through its robust technology non-Partners revenue platform via a complete ecomm
Slide 17: Launching a new product, 2021
Launching a new product, 2021 Initial release focuses on serving Facilisgroup Partners followed by an entry into the broader promotional products industry to capture share in a highly fragmented market. Integration across all Facilisgroup products will be a key differentiator 2021 2022 2022 APR AUG
Slide 18: Growth, driven by three technology products
Target market Product offering Recurring Revenues Growth, driven by Distributor GMV $’m Technology subscriptions Marketing Fund Other services three technology Order workflow, Effective day to products distributors < $2m Distributors day ordering ✓ ✓ ✓ < $2M GMV tools Ecommerce All Distributor Spect
Slide 19: Our internal aspirations to $50m Annual Recurring Revenues
THE PEBBLE GROUP Milestones Internal aspirations 2020 (A) 2021 2022 2023 2024 Our internal Partner/client aspirations to $50m numbers 175 205 330 575 950 # Annual Recurring Gross Revenues Merchandise Value 1.0 1.1 1.2 1.5 1.9 $50m Annual Recurring $’bn Revenues Spent with Preferred 0.3 0.3 0.4 0.5 0
Slide 20: Brand Addition focuses upon providing promotional products and related services
Brand Addition focuses upon providing promotional products and related services under contract to some of the world's most recognisable brands
Slide 21: Our business model
Our business model Contracted, with global brands Win, Grow, Retain, Repeat § Global brands Under contract, supporting brand Suppliers Brand, End excitement, values and integrity Brand Addition Working Europe, Asia, North America customer Capital § Revenue model: Product + Margin Large corporates, u
Slide 22: Win, Grow, Retain, Repeat
THE PEBBLE GROUP Revenue Analysis Revenue by service to clients Revenue by existing and new Revenue by client concentration Win, Grow, £’m £’m 3 £’m Retain, Repeat 61 67 69 10 12 95 5 35 32 33 76 80 44 14 20 68 14 13 10 46 51 43 25 29 29 38 25 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2
Slide 23: Strong sectors, across multiple geographies
THE PEBBLE GROUP Revenue Diversity Strong sectors, Revenue by client sector % Revenue by destination % across multiple 8% 11% FY 20 12% FY 20 geographies 6% FY 19 13% FY 19 15% 31% 11% 20% 31% 22% 14% 23% 24% 19% 15% 24% 32% 35% 34% Engineering Financial Services UK Europe Health, Beauty, FMCG Techn
Slide 24: Return towards 2019 revenue levels in 2021
Analyst consensus £91m ‘Return towards 2019 revenue levels in 2021’ 2019 £98m £73m £84m £91m £98m Total Revenues 7 69 7 62 1. Consumer Promotions 7 55 3 - Robust performance in 2020 vs 2019 48 - Excellent momentum into 2021 41 2. Corporate Programmes 70% 80% 90% 2019 2019 2019 – like for like - 100%
Slide 25: Commitment to Environmental, Social and Governance (ESG)
THE PEBBLE GROUP Commitment to Environmental, Social and Governance (ESG) Investments into ESG Cornerstones of our ESG § New appointments § Impact of our business on our environment - Group General Counsel and Company Secretary and our communities - Senior ESG Officer - Sustainability Manager, Brand
Slide 26: Group Outlook
Group Outlook § The new financial year has started well with a good performance in the first quarter across all areas of the business § The team and Board are confident in the long-term prospects for our market and the strategies that we are implementing to increase our position within it Facilisgro
Slide 27: Financial Guidance
23 March 2021 Full Year Results 2020 Financial Guidance Building brands Growing relationships Strengthening businesses
Slide 28: Financial Guidance
THE PEBBLE GROUP Financial Guidance § CAPITAL EXPENDITURE: § CURRENCY RATES: (excluding amounts capitalised under IFRS 16) Actual Actual YTD Actual Actual Est £:US$ 2019 2020 2021 £m 2019 2020 2021 Income Statement (average rate) 1.28 1.28 1.38 Tangible 0.6 0.8 0.8 Balance Sheet (year end rate) 1.32