The Pebble Group (PEBB) H1 2025 earnings summary

Executive summary

• Operating in the $50 billion global promotional products market, with a £58.6m HY 25 revenue, down 3.6–4% YoY, and gross margin improving to 45.1%.

• Adjusted EBITDA fell 16.2% to £6.2m, with net cash rising to £6.0m, supported by high client and partner retention rates (97% at Facilisgroup, 100% top 30 clients at Brand Addition).

• New contract wins and disciplined cost management offset macroeconomic headwinds and cautious client spending.

• Both divisions maintain market-leading positions, with Facilisgroup adding 18 new partners (50% growth) and Brand Addition accelerating new client acquisition.

• Significant capital returned to shareholders, totaling £11.7m year-to-date.

Financial highlights

• Revenue for HY 25 was £58.6m, down from £60.8m, with gross profit margin up to 45.1% (+0.4ppt YoY).

• Adjusted EBITDA margin at 10.6%, operating profit margin at 4.8%, and basic EPS at 1.24p.

• Operating cash flow improved, with capital expenditure reduced to £2.3m.

• £11.7m returned to shareholders via dividends, share buybacks, and a tender offer.

• Net cash at 30 June 2025 was £6.0m, up from £4.9m a year earlier.

Outlook and guidance

• FY 25 revenue expected to be broadly in line with last year, requiring £25m in additional H2 orders, consistent with prior years.

• Focus on client retention, new contract wins, and disciplined cost/margin management.

• Facilisgroup investment in sales and leadership expected to drive further partner growth and revenue momentum.

• Brand Addition margins expected to remain stable at current levels.

• Board confident in delivering sustainable earnings growth and shareholder value.