Pebble Beach revenue rises despite weaker order intake

(Sharecast News) - Broadcasting and streaming software and technology specialist Pebble Beach Systems reported a first-half revenue boost of 9% on Wednesday, bringing the figure up to £5.5m. The AIM-traded firm said recurring revenue saw a more significant jump, rising 13% to hit £2.53m.

Order intake, however, dipped to £4.4m from the £5m recorded a year earlier.

The company attributed the decrease to prevailing economic uncertainty, leading several clients to postpone non-critical expenditures.

Adjusted EBITDA for the first half slightly increased to £1.4m from £1.3m year-on-year, representing 25% of overall revenue.

In contrast, the prior year's figure constituted 26% of revenue.

Profits before tax came in at £0.2m, showing a small decline from the £0.3m in the first six months of last year, while adjusted earnings per share narrowed to 0.2p from 0.4p.

A notable improvement was reported in net cash generated from operating activities, which stood at £1.7m, jumping from £0.6m year-on-year.

The company said it also succeeded in cutting down its gross bank debt by £0.5m over the last six months, with the total debt being £6.1m as at 30 June.

Its net debt on the same date was £5.1m, representing a net debt-to-last 12 months adjusted EBITDA ratio of about 1.6x.

In terms of its current operations and future projections, Pebble Beach reported a robust weighted pipeline value of £8.7m, an improvement from £7.4m at the end of June last year.

That surge in inquiries was put down to a competitor's decision to discontinue their playout automation solutions - a move that could prove beneficial for Pebble Beach in expanding its clientele.

Despite a slump in order intake during the first half, the company's management said it was optimistic about achieving full-year growth thanks to the strength of its current pipeline and sustained customer engagement.

"The company has delivered a robust performance for the first half of 2023, despite a delay in new order intake," said non-executive chairman John Varney.

"Our continued long-term aim of investing in new software solutions whilst reducing our overall indebtedness remains central to our strategy to ensure we continue to be well positioned to benefit from the industry transition to IP as full-scale adoption occurs.

"The board continues to have confidence that the Group can deliver a strong second half with improved revenue and achieve the board's expectations for the year."

At 1041 BST, shares in Pebble Beach Systems Group were down 5.52% at 6.85p.

Reporting by Josh White for Sharecast.com.