Pebble Beach Systems Delivers Strong H1 Results, Expects FY25 and FY26 Profitability to Exceed Expectations
Why we think this is very good
The trading update from Pebble Beach Systems Group plc indicates strong performance in the first half of 2025, with significant improvements in profitability, revenue growth, and debt reduction. The company's adjusted EBITDA grew by 43% year-on-year, while revenues increased by 11%. The reduction in net debt and the expectation of moving to a net cash position in 2026 further strengthen the company's financial position. Additionally, the valuation metrics suggest the company may be undervalued, providing potential upside for investors. Overall, the update paints a very positive picture of the company's performance and future prospects.
Key Points
- Strong order intake of £6.5m, up from £4.9m in H1 24
- Revenues increased to c.£5.9m, up from £5.3m in H1 24
- Adjusted EBITDA of c.£2.0m, up from £1.4m in H1 24
- Adjusted EBITDA margin improved to 34%, up from 27% in H1 24
- Net debt reduced to £3.3m, down from £4.8m in H1 24
- Expects to move to a net cash position during 2026
Summary
Pebble Beach Systems Group plc, a leading global software business specialising in playout automation and integrated channel solutions, has provided a positive trading update for the first half of 2025. The Group generated strong order intake during the Period, with orders of £6.5m, up from £4.9m in H1 24. Revenues increased to c.£5.9m, up from £5.3m in H1 24, driven by the timing of project order intake and continued growth in SLA revenue. The strong revenue performance, combined with a reduction in overheads, resulted in adjusted EBITDA of c.£2.0m, up from £1.4m in H1 24, with an improved adjusted EBITDA margin of 34%. Net debt was reduced to £3.3m, down from £4.8m in H1 24, and the Group expects to move to a net cash position during 2026. The company's valuation metrics suggest it may be undervalued, providing potential upside for investors.