Pebble Group warns on profits, shares tumble
By Michele Maatouk
Date: Wednesday 22 Nov 2023
(Sharecast News) - Pebble Group tumbled on Wednesday as it warned on full-year profits after order intake at its Brand Addition business came in lower than expected.
In an update for the year to the end of December, the company said it now expects group revenues to be around £124m, down from £134m a year earlier. Meanwhile, group earnings before interest, tax, depreciation and amortisation are expected to be £16m, down from £18m a year earlier.
"Against the difficult economic backdrop, we are disappointed to report a reduction in our group's expected FY 23 results, due to lower order intake at Brand Addition," it said.
"Both of our businesses remain strong financially, are well differentiated within their respective markets and have a clear strategic plan. Our balance sheet is robust and we look forward to returning the group to growth in 2024."
Berenberg, which rates the shares at 'buy', said: "Today's update reflects cyclical pressures and, given that retention rates remain high, we expect an acceleration in growth once client spending recovers, which we expect in H2 2024. The long-term investment thesis remains intact."
AIM-listed Pebble Group provides digital commerce, products and related services to the global promotional products industry.
At 1015 GMT, the shares were down 37% at 55p.
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