discovering, designing, delivering

Pebble Beach Systems Group Plc

Results for the year ended 31 December 2022

Peter Mayhead, CEO

Paul Inzani, Head of Finance

Agenda

  • Overview
  • Financial Review
  • Operational Review
  • Trading Outlook
  • Appendix - Case studies

2

Three key takeaways for today

Focus on balancing short term performance with long term investment into next generation solutions

Business growing despite macro challenges such as, Ukraine war and global economic uncertainty

  • Revenue up 5% on F21 to £11.2m
  • Recurring revenue from support contracts up 1% to £4.6m
  • £6.9m of new project wins in the year
  • Continued investment in headcount to support new product developments

Continued investment into

software development

  • Oceans automation to provide cloud-native playout solution broadens our addressable market
  • Media Processing Engine to remove reliance on third party video capability
  • Pebble Control development progressing with added functionality.

Strong operational

performance

  • Remote operating model providing resilience
  • Debt reduced by a further £1m to £6.5m
  • Net debt of £5.8m represents 1.8x 12 month adj EBITDA

3

Key Performance Indicators

Order Intake

Revenue

Recurring support revenue

Adjusted EBITDA*

R&D expenditure

Cash generated from ops

Net Debt

  • Down 3% £11.3m FY21**: £11.6m
  • UP 5% £11.2m FY21: £10.6m
  • UP 1% £4.6m FY21: £4.6m
  • DOWN 3.5% £3.2m FY21: £3.3m
  • UP 19% £1.8m FY21: £1.5m
  • DOWN 34% £2.5m FY21: £3.8m
  • DOWN 1% £5.8m FY21: £5.9m

4

*Adjusted EBITDA, a non-GAAP measure, is EBITDA before non-recurring items, share based payment expense and foreign exchange movements. Adjusted earnings per share is calculated on the same basis as reported EPS before amortisation of acquired intangibles, share based payment expense and foreign exchange movements, after taking account of related tax effects.

** FY21 order intake has been adjusted to reflect a COVID-timing delays at the end of FY20

Operational highlights

International reach and operational excellence ensuring that the business is able to grow despite the challenging macro backdrop

Global

success

Operational excellence

  • Significant success in the Middle East across multiple customers, defending our position in this key market.
  • Adding PayTV channels to a customer in Brazil, expanding a successful long-term partnership with one of the largest broadcast organisations in the world.
  • Breaking into new markets with :
    • First order in Italy, to a sports broadcaster via a new channel partner.
    • Automation and integrated channel contract awarded by a major Indonesian media corporation.
  • £0.9m channel refresh project won in France to protect our position in a high value market.
  • Pebble continues to be considered a thought leader and technical authority on industry standards
  • The delays in sourcing hardware items resulting from the worldwide shortage of semiconductors have been
    largely mitigated, including a measured investment in inventory to allow customer orders to be delivered. We are seeing hardware lead times reduce so the shortage of semiconductors is less of a risk.
  • Investment in our new IP-native Oceans platform continues as planned.
  • Capitalising on the emerging broadcast IP network market through investment in Pebble Control
  • Strategic move to a fully remote operating model is delivering operational benefits in terms of

resilience, organisational growth and employee satisfaction.

5

  • Successfully negotiated a re-finance of the bank debt through to September 2024.

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Disclaimer

Pebble Beach Systems Group plc published this content on 26 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2023 08:15:09 UTC.