The Pebble Group (PEBB) H2 2024 earnings summary

Executive summary

• Achieved revenue of £125.3m in FY24, up 0.9% year-over-year, with adjusted EBITDA rising 4.4% to £16.7m and operating profit up 7.5% to £8.6m.

• Full year 2024 results show all key financial metrics moving in a positive direction, with improved predictability and disciplined cost control driving higher EBITDA and cash conversion.

• The group operates two main businesses: Facilisgroup (technology/SaaS for North American distributors) and Brand Addition (contracted promotional products for large corporates globally).

• High client retention and new contract wins in late 2024 position the group for continued growth in 2025.

• Completed a period of high capex at Facilisgroup, shifting focus to accelerating organic revenue growth.

Financial highlights

• Revenue for 2024 was slightly ahead of FY2023, with improved predictability and gross profit margins, especially in Brand Addition.

• Gross profit increased to £55.5m (FY23: £54.2m), with gross margin improving to 44.3%.

• Operating cash conversion increased to 68% from 63% in the prior year, driven by reduced CapEx and disciplined working capital management.

• Net cash position improved even after incremental distributions and ongoing share buybacks, with net cash at £16.5m.

• Dividend increased to GBP 0.0185 per share from GBP 0.012, with a continued share buyback program (£2.7m executed by March 2025).

Outlook and guidance

• Focus on accelerating organic growth in Facilisgroup by reinvesting cash, with a guided EBITDA margin of 45% (down from 50%) to support top-line growth.

• Brand Addition expected to maintain 5% growth, 10% EBITDA margin, and steady CapEx, with margin guidance at 33% (internally targeting 35%).

• Operating cash conversion is expected to continue improving in 2025, with increased investment in organic growth and ongoing shareholder returns.

• Board monitoring macroeconomic risks such as tariffs and economic stability, but confident in ability to manage through volatility.

• Facilisgroup and Brand Addition both report sales and GMV slightly ahead of prior year; new contract momentum continues.