LONDON (ShareCast) - (Sharecast News) - Broadcast and streaming automation and content management technology company Pebble Beach said on Wednesday that it expected to report results for 2020 with revenue of around £8.4m, down from £11.2m, and adjusted EBITDA of £2.6m, falling from £3.8m.
The AIM-traded firm said orders received in the full year totalled £7.8m, down from £10.3m year-on-year, with the second half of the year matching the first half as the Covid-19 pandemic continued to impact the sector.

Pebble Beach said its management team responded "quickly" to the challenges created by the pandemic, with the business transitioning to remote working and implementing cost savings, which maintained its adjusted EBITDA margin above 30%.

The board noted that it did not take advantage of any government loan or furlough schemes, and there were no staff layoffs during the year.

Despite the more difficult trading environment, Pebble Beach said it delivered "good" operating cash generation, helping to reduce net debt further to £7.7m as at 31 December, from £8.4m a year earlier.

The company said it expected that net debt reduction trend to continue into 2021, adding that it was enjoying a positive relationship with its bank, Santander, and had agreed a facility extension which would be signed in the coming weeks.

Going into 2021, the firm said there were still delays in the investment decisions of its customers given Covid-19.

However, it said its pipeline remained "very strong", with the firm saying it expected to build on its "trusted" market position.

The board said it would continue to invest in solutions to support broadcasters as they transitioned from traditional broadcast infrastructure to more flexible internet protocol-based technologies.

"As with many other companies in our sector, the unprecedented conditions created by Covid-19 have proved challenging, as customers have inevitably delayed orders," said non-executive chairman John Varney.

"However, we are pleased with the resilience of our business through these conditions and there has been no disruption to the execution of our strategy.

"Recurring revenues are robust and although customers have delayed projects, our strong - and growing - pipeline reflects the market opportunity for our technology as more consumers turn to broadcast and streaming services."

Varney noted that the company increased its investment in research and development to £1.3m in 2020 from £1m in 2019, as it believed that ongoing investment and continued enhancement of its product suite were "critical" to its delivery of a next generation, cloud-based solution.

"The board is confident that the group continues to be well-positioned to help our customers meet the needs of their expanding offering and that the group will benefit accordingly."

Pebble Beach said it would release its audited results for the year ended 31 December in late April.

At 1230 GMT, shares in Pebble Beach Systems Group were up 0.39% at 10.29p.

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