Half Year Results 2023

Pebble Group PLC (The)
05 September 2023
 

 

5 September 2023

THE PEBBLE GROUP PLC

("The Pebble Group" or the "Group")

 

UNAUDITED HALF YEAR RESULTS 2023

Solid performance with strategic progress

 

The Pebble Group (AIM: PEBB, OTCQX: PEBBF), a leading provider of digital commerce, products and related services to the global promotional products industry, announces its unaudited results for the six months ended 30 June 2023 ("HY 23" or the "Period").

 

Having achieved solid year on year growth in HY 23, the Board expects that for the year ending 31 December 2023 ("FY 23") the Group's results will be in line with market expectations.

 

Financials

 

Statutory results

HY 23

HY 22

Change

FY 22

Revenue

£63.3m

£60.3m

+5%

£134.0m

Gross profit margin

42.8%

38.5%

+4.3ppt

39.3%

Operating profit

£3.3m

£3.1m

+6%

£10.2m

Profit before tax

£3.1m

£2.8m

+11%

£9.7m

Basic earnings per share

1.37p

1.27p

+8%

4.55p

 

Other financial highlights

HY 23

HY 22

Change

FY 22

Adjusted EBITDA1

£7.5m

£6.7m

+12%

£18.0m

Net cash / (debt)2

£4.2m

£(0.1)m

+£4.3m

£15.1m

Adjusted basic earnings per share3

2.08p

1.88p

+11%

5.78p

 

Financial highlights and outlook

 

·

Group Adjusted EBITDA up 12% following solid trading across the Group

·

Facilisgroup: Revenue for HY 23 of £9.2m up 24% on HY 22 generating £4.3m Adjusted EBITDA (HY22: £3.5m)

·

Brand Addition: Revenue for HY 23 of £54.2m up 2.5% on HY 22 generating £4.5m Adjusted EBITDA (HY 22: £4.4m)

·

Gross profit margins increase 4.3 percentage points to 42.8%, driven by higher contribution from Facilisgroup and improved margins at Brand Addition of 33.2% (HY 22: 29.9%)

 

·

Balance sheet strong and working capital cycle following its normal pattern, with good profit to cash conversion resulting in a net cash position at the full year expected to be circa £17m

·

The Board expects FY 23 results to deliver on market expectations

 

Operational highlights

 

·

Strong profit margins maintained in parallel with investments into our technology, sales and marketing strategies

·

In Facilisgroup:

·    New wins saw Syncore grow to 238 Partners at 4 September 2023 (31 December 2022: 225) with a strong pipeline

·    Commercio Stores, our ecommerce offering introduced in 2022, became revenue generating with, to date, circa 20% of Partners utilising the product

·    Good progress made on the development of the Orders product, aimed at smaller distributors, with a Beta version launched in H2 2023

·

Brand Addition revenue growth continues to be underpinned by its diverse and loyal client base with investments into ESG and global capabilities further differentiating the business with its target market

 

Commenting on the results, Chris Lee, Chief Executive Officer of Pebble Group said: "Our attractive markets and blue-chip clients have seen Facilisgroup and Brand Addition trade solidly in the first half, as we deliver against our stated strategies. Both businesses have strong and differentiated market positions and we look forward to FY 23 when results are expected to be in line with market expectations. We anticipate that Facilisgroup will become the majority contributor to our profits as we move through 2024."

 

1

Adjusted EBITDA means operating profit before depreciation, amortisation and share-based payments charge

2

Net cash/(debt) is calculated as cash and cash equivalents less borrowings (excluding lease liabilities)

3

Adjusted basic earnings per share ("EPS") represents Adjusted Earnings meaning profit after tax before amortisation of acquired intangible assets and share-based payments charge divided by a weighted average number of shares

 

Online analyst and investor presentation

 

A presentation for sell-side analysts will take place at 8:00am today by webinar. Those wishing to attend should email investors@thepebblegroup.com  

 

The management team is hosting an online investor presentation with Q&A at 12.30pm on Friday, 8 September 2023.  To participate, please register with PI World at https://bit.ly/PEBB_H123_webinar

 

 

Enquiries:

 

The Pebble Group

Chris Lee, Chief Executive Officer

Claire Thomson, Chief Financial Officer

+44 (0) 750 012 4121

Temple Bar Advisory (Financial PR)

Alex Child-Villiers

William Barker / Sam Livingstone

+44 (0) 207 183 1190

pebble@templebaradvisory.com

 

 

 

Grant Thornton UK LLP (Nominated Adviser)

Samantha Harrison / Harrison Clarke / Ciara Donnelly

+44 (0) 207 184 4384

Berenberg (Corporate Broker)

Ben Wright / Marie Moy / Yasmina Benchekroun

+44 (0) 203 207 7800

 

About The Pebble Group

 

The Pebble Group is a provider of digital commerce, products and related services to the global promotional products industry, comprising two differentiated businesses, Facilisgroup and Brand Addition, focused on specific areas of the promotional products market. For further information, please visit www.thepebblegroup.com.



 

CHIEF EXECUTIVE OFFICER'S REVIEW

 

Summary of results

 

We are pleased to report that both of our businesses, Facilisgroup and Brand Addition, traded solidly throughout HY 23, with the Group achieving Revenue of £63.3m (HY 22: £60.3m), Adjusted EBITDA of £7.5m (HY 22: £6.7m) and Operating profit of £3.3m (HY 22: £3.1m).

 

The Group's balance sheet is underpinned by Brand Addition's blue-chip client base with Group working capital and cash management following its usual in-year cycle. Our businesses have a good track record of converting profit to cash, which has continued, and the Group had Net cash at 30 June 2023 of £4.2m (30 June 2022: Net debt £0.1m and 31 December 2022: Net cash £15.1m).

 

Facilisgroup: providing a digital commerce platform for promotional products businesses in North America

 

Revenue and profit analysis

 

 

HY 23

HY 22

FY 22

Recurring revenue

£8.6m

£7.0m

£15.5m

Other revenue

£0.6m

£0.4m

£1.1m

Total revenue

£9.2m

£7.4m

£16.6m

Gross profit margin

100%

100%

100%

Adjusted EBITDA

£4.3m

£3.5m

£9.0m

Operating profit

£2.2m

£1.7m

£5.0m

 

Total revenue, the vast majority of which is recurring, increased by 18.4% in USD, the business's home currency, and 24.3% in GBP, compared to HY 22. The strong profit margins have been maintained alongside investing in our technology, sales and marketing strategies.

 

The Gross Merchandise Value ("GMV") transacted through our technology increased by 9% to USD688m (HY 22: USD630m) and total Partners (customers of our flagship product, Syncore) at 4 September 2023 grew to 238 (31 December 2022: 225) backed by an increasing new business pipeline. Strong Partner retention rates continue, demonstrating  how our technology and related services are key to their business operations.

 

Our aim at Facilisgroup has been to extend the breadth of our technology to offer both order workflow and ecommerce solutions to the circa 20,000 distributors across the North American promotional products market. We are pleased to report that by the end of 2023, the following products will be in market:

 

Syncore: Order workflow, focussed on distributors with revenues of >USD2m. This is our flagship product upon which results to date have been principally based

Commercio Stores: Ecommerce Stores, aimed at all sizes of distributors. Launched to market in H2 2022

Commercio Orders: Order workflow, focussed on distributors with revenues of <USD2m. Launched in Beta stage in H2 2023

 

Commercio Stores, our ecommerce offering introduced in 2022, is further developing its product features to position it as a leading solution in the promotional products sector. Total paying customers of this product at 4 September 2023 was 55, which includes 45 existing Partners of Syncore. The pricing strategy is based on a monthly fee plus a fee per store which, as Commercio grows, will in effect increase our percentage fee per USD of GMV. With the launches of Commercio Stores and Orders now completed we expect a decreasing trend of capital investment from circa 30% of historic Facilisgroup revenues towards a more normalised level of 15% to 20%.

 

As we bring new products to market, our revenue growth is expected to be delivered by increasing the GMV through adding new customers and increasing the services we offer. We intend to evolve our KPIs to reflect this, disclosing customer numbers, the GMV transacted through our platform and the resultant "Attach Rate" percentage derived from the amount of income earned against this GMV.

 

We believe that Facilisgroup, with its strong market position, current rate of growth and excellent profit margins, will become the majority contributor to Group profits moving through 2024.

 

Brand Addition: providing promotional products and related services under contract to many of the world's most recognisable brands

 

Revenue and profit analysis

 

 

HY 23

HY 22

FY 22

Revenue

£54.2m

£52.9m

£117.4m

Gross profit

£18.0m

£15.8m

£36.1m

Gross profit margin

33.2%

29.9%

30.7%

Adjusted EBITDA

£4.5m

£4.4m

£11.5m

Operating profit

£2.7m

£2.8m

£8.0m

 

At Brand Addition, HY 23 revenue increased to £54.2m, 2.5% ahead of HY 22 with client retention remaining high. Revenue by client sector has broadly followed trends in the global economy, with revenues from our Technology and Consumer sector clients being lower in HY 23 than HY 22 whilst revenue from our Engineering and Transport sector clients has grown in the same period. Our sector diversity and embedded client relationships has insulated the business through a turbulent economic cycle.

 

Brand Addition supports its clients through providing complex services, ranging from the design of bespoke products and product ranges to the hosting of web stores. Our target market clients have promotional merchandise strategies that require creative product solutions with a strong and consistent sustainability focus, delivered across multiple geographies. We believe that Brand Addition is one of the few businesses with the skills, knowledge and experience to provide this level of service at scale. This has afforded the business the opportunity to improve its gross margins compared to the prior period whilst maintaining its EBITDA margins, after investing to support our clients evolving needs.

 

The majority of revenue of Brand Addition is generated through approximately 70 client contracts and with a new business development target list of 800 companies, Brand Addition has a large addressable market to grow into. Current new business tendering activity remains consistent with prior years. Through this new business development and growth within the existing client base, we aim for high single digit year-on-year revenue growth.

 

Environmental, Social and Governance ("ESG")

 

ESG activity is a key component of our Group strategy and continues to evolve based upon business need, best practice and stakeholder comment. We have recently updated our ESG cornerstones and revised our ESG Materiality Assessment based upon feedback from a wide range of stakeholders and this development can be found under the ESG section of our website, https://www.thepebblegroup.com/about-us/esg/ . In Q2 2024, we will issue our third ESG Report, reiterating our ESG priorities, actions and progress against our targets.

 

Group outlook

 

We are continuing to deliver on our stated strategies for Facilisgroup and Brand Addition. Both businesses have strong and differentiated market positions and we look forward to FY 23 when results are expected to be in line with market expectations.

 

Christopher Lee

Chief Executive Officer

5 September 2023

 

CHIEF FINANCIAL OFFICER'S REVIEW

 

 

HY 23

HY 22

FY 22


Unaudited

£'m

Unaudited

£'m

Audited

£'m

Revenue

63.3

60.3

134.0

Gross profit

27.1

23.2

52.7

Gross profit margin

42.8%

38.5%

39.3%

Adjusted EBITDA

7.5

6.7

18.0

Adjusted EBITDA margin

11.8%

11.1%

13.4%

Depreciation and amortisation

(3.4)

(3.0)

(6.5)

Share-based payment charge

(0.8)

(0.6)

(1.3)

Operating profit

3.3

3.1

10.2

Net finance costs

(0.2)

(0.3)

(0.5)

Profit before tax

3.1

2.8

9.7

Tax

(0.8)

(0.7)

(2.1)

Profit for the Period

2.3

2.1

7.6


 



Weighted average number of shares

167,450,893

167,450,893

167,450,893

Adjusted Basic EPS

2.08p

1.88p

5.78p

Basic EPS

1.37p

1.27p

4.55p

 

Our results demonstrate growth in both our businesses against HY 22 as we continue to progress our stated strategy.

 

Revenue

 

Revenue for the Period to 30 June was £63.3m (HY 22: £60.3m), an increase of £3.0m (5.0%) compared to the same period in 2022. Facilisgroup total revenues increased £1.8m (24.3% increase on HY 22). Annual Recurring Revenue ("ARR") growth was 22.9% (17.4% when measured in Facilisgroup's home currency of USD). This was achieved through increases in our Management Fees from additional Partner numbers, implementation of a new tiered pricing structure and growth in our Marketing Fund where we benefited from increased Partner numbers utilising our Preferred Suppliers. The balance of the increase relates to Brand Addition, which grew £1.3m or 2.5%. Revenue by sector for Brand Addition has broadly followed trends in the wider economy.

 

Gross profit

 

Gross profit as a percentage of revenue increased to 42.8% (HY 22: 38.5%). Of this 4.3p.p.t increase, 3.3p.p.t is an increase in gross margins at Brand Addition as the business has maintained strong control of its supply chain alongside being able to improve gross margins to reflect the increasing complexity of the services demanded by its customers. The balance of the increase reflects the increasing proportion of Facilisgroup of the Group as a whole.

 

Adjusted EBITDA

 

Adjusted EBITDA was £7.5m (HY 22: £6.7m). The increase of £0.8m is made up as follows:

 

-

Facilisgroup £0.8m increase from incremental revenue net of the costs of investment to support delivery of the medium-term revenue aspirations;

-

Brand Addition £0.1m increase as improvements in gross margin have been invested in expertise to support the increasing complexity of client services; and

-

Central costs increase of £0.1m.

 

The Adjusted EBITDA margin increased to 11.8% (HY 22: 11.1%) as a result of the increasing proportion of Facilisgroup  revenue to the Group EBITDA.

 

Depreciation and amortisation

 

The total charge for the Period was £3.4m (HY 22: £3.0m) of which £2.2m (HY 22: £1.9m) was the amortisation of intangible assets. In accordance with IAS 38, the Group capitalises the costs incurred in the development of its software and the increase is a result of continued investment in proprietary technology and specifically the digital commerce platform at Facilisgroup. 

 

Share-based payments

 

The total charge for the Period under IFRS 2 "Share-based payments" was £0.8m (HY 22: £0.6m). This related to the awards made to date under the 2019 Long Term Incentive Plan and the Group Sharesave Plan (SAYE).

 

Operating profit

 

Operating profit for the Period was £3.3m (HY 22: £3.1m).

 

Taxation

 

The tax charge for the Period to 30 June was £0.8m (HY 22: £0.7m) and is based on the full year Group expected tax charge for 2023. The expected rate for the year incorporates the increase in the UK Corporation tax rate from 19% to 25% on 1 April 2023.

 

Basic Earnings per share

 

The earnings per share analysis in note 5 covers both adjusted earnings per share (profit after tax before amortisation of acquired intangibles, share-based payments charge and exceptional items divided by the weighted average number of shares in issue during the year), and statutory earnings per share (profit attributable to equity holders divided by the weighted average number of shares in issue during the year). Adjusted earnings were £3.5m (HY 22: £3.2m) an increase in adjusted basic earnings per share of 0.20 pence. Basic earnings per share was 1.37 pence per share (HY 22: 1.27 pence per share) an increase of 0.10 pence. 

 

Dividends

In March 2023, the Board announced a maiden dividend payment in respect of FY 22 and in doing so stated its intention to implement a progressive dividend policy moving in the medium-term, towards its stated position at IPO of making dividend payments of c.30% of profit after tax. The Board remains committed to this decision but does not consider the introduction of an interim dividend payment is necessary at this time. An update on the dividend payment in respect of FY 23 will be provided at the time of the full year announcement in March 2024.

 

Cashflow

 

The Group had a cash balance of £4.2m at 30 June 2023 (30 June 2022: £5.4m, which included £5.5m drawn down from its £10.0m committed revolving credit facility).

 

 

Cashflow for the Period is set out below:

 

 

HY 23

HY 22

FY 22

 

Unaudited

£'m

Unaudited

£'m

Audited

£'m

Adjusted EBITDA

7.5

6.7

18.0

Movement in working capital

(9.7)

(14.8)

(3.4)

Capital expenditure

(4.0)

(3.6)

(8.4)

Leases

(0.9)

(0.9)

(1.7)

Adjusted operating cash flow

(7.1)

(12.6)

4.5

Tax paid

(1.5)

(0.3)

(1.7)

Net finance cash flows

(0.3)

5.2

(0.5)

Dividend paid

(1.0)

-

-

Exchange loss

(1.0)

1.0

0.7

Net cash flow

(10.9)

(6.7)

3.0

 

The movement in working capital in the Period was £(9.7m) (HY 22: £(14.8m)). The outflow is in line with the normal in-year cycle which peaks in Q3. The reduced outflow when compared with prior period reflects the mix of sales in Brand Addition which have been weighted towards locally sourced products where the working capital cycle is shorter.

 

Capital expenditure in the Period was £4.0m (HY 22: £3.6m). This spend relates principally to investment in the Facilisgroup digital commerce platform which we expect to peak in 2023.

 

Lease payments relate to leases capitalised in accordance with IFRS 16.

 

Net finance cash flows in the Period of £(0.3)m (HY 22: £5.2m).  HY 22 included £5.5m in respect of the utilisation of committed facilities less £(0.3)m interest payments in respect of leases capitalised in accordance with IFRS 16. At 30 June 2023 the committed facilities had not been utilised, interest payments on leases are consistent with HY 22. 

 

Cash and liquidity

 

The Group's working capital cycle is unwinding as expected. The high point experienced in the period from June to August 2023 is reducing, as we progress towards the year end, with clients and Partners continuing to pay to agreed terms. The Group had Net cash of £3.1m at 4 September 2023. This includes £2.0m drawn down from the £10.0m committed revolving credit facility. The company continues to demonstrate an attractive profit to cash conversion and as such we expect Net cash at the full year end, 31 December 2023 to be in line with current market expectation of circa £17m (31 December 2022: £15.1m).

 

Claire Thomson

Chief Financial Officer

5 September 2023

 

 

CONSOLIDATED INCOME STATEMENT


 

 

 

Notes

Unaudited

Period ended

30 June

2023

Unaudited

Period ended

30 June

2022

Audited

Year ended

31 December

2022



£'000

£'000

£'000



 



Revenue


63,317

60,316

134,025

Cost of goods sold


(36,188)

(37,099)

(81,279)

Gross profit

 

27,129

23,217

52,746



 



Operating expenses


(23,810)

(20,168)

(42,523)

Operating profit

 

3,319

3,049

10,223

 


 



Analysed as:


 



Adjusted EBITDA1

6

7,480

6,698

18,042

Depreciation

8

(1,115)

(1,134)

(2,384)

Amortisation

7

(2,224)

(1,877)

(4,182)

Share-based payment charge

11

(822)

(638)

(1,253)

Operating profit

 

3,319

3,049

10,223

 


 



Finance expense


(266)

(245)

(520)

Profit before taxation

 

3,053

2,804

9,703

 

 

 



Income tax expense

4

(751)

(673)

(2,090)

Profit for the period

 

2,302

2,131

7,613

 


 



Basic earnings per share

5

1.37p

1.27p

4.55p

 


 



Diluted earnings per share

5

1.37p

1.27p

4.54p

 

Note 1: Adjusted EBITDA, which is defined as operating profit before depreciation, amortisation, exceptional items, and share-based payment charge is a non-GAAP metric used by management and is not an IFRS disclosure.

CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

 

Unaudited

Period ended

30 June

2023

Unaudited

Period ended

30 June

2022

Audited

Year ended

31 December

2022


£'000

£'000

£'000


 



Items that may be subsequently reclassified to profit and loss

 



Foreign operations - foreign currency translation differences

(1,901)

2,443

2,190

Other comprehensive (expense)/income for the period/year

(1,901)

2,443

2,190


 



Profit for the period/year

2,302

2,131

7,613

Total comprehensive income for the period/year

401

4,574

9,803

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 


Notes

Unaudited

As at

30 June

2023

Unaudited

As at

 30 June

2022

Audited

As at 31 December 2022



£'000

£'000

£'000

ASSETS


 



Non-current assets


 



Intangible assets

7

60,353

58,765

60,002

Property, plant and equipment

8

8,729

10,194

9,492

Deferred tax asset


270

395

292

Total non-current assets

 

69,352

69,354

69,786



 



Current assets


 



Inventories


14,788

16,081

15,447

Trade and other receivables


36,901

38,587

34,693

Cash and cash equivalents


4,184

5,351

15,058

Total current assets

 

55,873

60,019

65,198



 



TOTAL ASSETS

 

125,225

129,373

134,984



 



LIABILITIES


 



Non-current liabilities


 



Lease liability

9

6,795

8,185

7,490

Deferred tax liability


2,370

3,751

2,860

Total non-current liabilities

 

9,165

11,936

10,350



 



Current liabilities


 



Borrowings


-

5,500

-

Lease liability

9

1,496

1,612

1,569

Trade and other payables


28,403

30,485

36,413

Current tax liability


397

169

1,063

Total current liabilities

 

30,296

37,766

39,045



 



TOTAL LIABILITIES

 

39,461

49,702

49,395



 



NET ASSETS

 

85,764

79,671

85,589

 

 

 



EQUITY AND RESERVES

 

 



Share capital

 

1,675

1,675

1,675

Share premium

 

78,451

78,451

78,451

Capital reserve

 

125

125

125

Merger reserve

 

(103,581)

(103,581)

(103,581)

Translation reserve

 

(1,038)

1,116

863

Share-based payments reserve

 

2,671

1,203

1,892

Retained earnings

 

107,461

100,682

106,164

TOTAL EQUITY

 

85,764

79,671

85,589

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


Share capital

Share premium

 

 

Capital reserve

 

 

Merger reserve

 

 

Translation reserve

Share-based payments reserve

Retained earnings

Total equity


£'000

£'000


£'000

£'000


£'000

£'000

 

 

 

 

 

 

 

 

 

At 1 January 2022

1,675

78,451

125

(103,581)

(1,327)

681

98,551

74,575

 









Profit for the period

-

-

-

-

-

-

2,131

2,131

Other comprehensive income for the period

-

-

-

-

2,443

-

-

2,443

Total comprehensive income

-

-

-

-

2,443

-

2,131

4,574

Employee share schemes - value of employee services

-

-

-

-

-

577

-

577

Deferred tax on employee share schemes

-

-

-

-

-

(55)

-

(55)

Total transactions with owners recognised in equity

-

-

-

-

-

522

-

522

At 30 June 2022

1,675

78,451

125

(103,581)

1,116

1,203

100,682

79,671

 









Profit for the period

-

-

-

-

-

-

5,482

5,482

Other comprehensive expense for the period

-

-

-

-

(253)

-

-

(253)

Total comprehensive (expense)/income

-

-

-

-

(253)

-

5,482

5,229










Employee share schemes - value of employee services

-

-

-

-

-

619

-

619

Deferred tax on employee share schemes

-

-

-

-

-

70

-

70

Total transactions with owners recognised in equity

-

-

-

-

-

689

-

689

At 31 December 2022

1,675

78,451

125

(103,581)

863

1,892

106,164

85,589

 

 

 

 

 

 

 

 

 

Profit for the period

-

-

-

-

-

-

2,302

2,302

Other comprehensive expense for the period

-

-

-

-

(1,901)

-

-

(1,901)

Total comprehensive (expense)/income

-

-

-

-

(1,901)

-

2,302

401

Employee share schemes - value of employee services

-

-

-

-

-

743

-

743

Deferred tax on employee share schemes

-

-

-

-

-

36

-

36

Dividend paid

-

-

-

-

-

-

(1,005)

(1,005)

Total transactions with owners recognised in equity

-

-

-

-

-

779

(1,005)

(226)

At 30 June 2023

1,675

78,451

125

(103,581)

(1,038)

2,671

107,461

85,764


CONSOLIDATED CASH FLOW STATEMENT


Notes

Unaudited

Period ended

30 June

2023

Unaudited

Period ended

30 June

2022

Audited

Year ended

31 December

2022



£'000

£'000

£'000



 



Operating profit


3,319

3,049

10,223

Adjustments for:

 

 

 

 

-       Depreciation

8

1,115

1,134

2,384

-       Amortisation

7

2,224

1,877

4,182

-       Share-based payments charge

11

822

638

1,253

-       Loss on disposal of fixed assets

8

3

-

19

Cash flows from operating activities before changes in working capital

 

7,483

6,698

18,061



 



-       Change in inventories


659

(5,988)

(5,354)

-       Change in trade receivables


(2,208)

(9,148)

(5,271)

-       Change in trade payables


(8,089)

321

7,263

Cash flows (used in)/from operating activities

 

(2,155)

(8,117)

14,699



 



-       Income taxes paid


(1,545)

(326)

(1,712)

Net cash flows (used in)/from operating activities

 

(3,700)

(8,443)

12,987

 


 



Cash flows from investing activities


 



-       Purchase of property, plant and equipment


(349)

(444)

(945)

-       Purchase of intangible assets


(3,687)

(3,104)

(7,434)

Net cash flows used in investing activities

 

(4,036)

(8,379)



 



Cash flows from financing activities


 



-       Lease payments


(919)

(929)

(1,737)

-       Interest paid


(266)

(245)

(520)

-       Dividend paid


(1,005)

-

-

-       Receipts from secured loan facilities


-

5,500

-

Net cash flows (used in)/from financing activities

 

(2,190)

(2,257)


 

 



NET CASH FLOWS

 

(9,926)

(7,665)

2,351



 



Cash and cash equivalents at beginning of period


15,058

12,051

12,051

Effect of exchange rate fluctuations on cash held


(948)

965

656

Cash and cash equivalents at end of period

 

4,184

5,351

15,058

 

NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL INFORMATION

 

1.     GENERAL INFORMATION

The principal activity of The Pebble Group plc (the "Company") is that of a holding company and the principal activity of the Company and its subsidiaries (the "Group") is the sale of digital commerce, products and related services to the promotional merchandise industry. The Group has two segments, Brand Addition and Facilisgroup. For Brand Addition this is the sale of promotional products internationally, to many of the world's best-known brands, and for Facilisgroup the provision of digital commerce, consolidated buying power and community learning and networking events to SME promotional product distributors in North America, its Partners, through subscription-based services.

 

The Company was incorporated on 27 September 2019 in the United Kingdom and is a public company limited by shares registered in England and Wales. The registered office of the Company is Broadway House, Trafford Wharf Road, Trafford Park, Manchester, England M17 1DD. The Company registration number is 12231361.

 

2.     BASIS OF PREPARATION

These condensed consolidated interim financial statements of the Group are for the period ended 30 June 2023. They have been prepared on the basis of the policies set out in the 2022 annual financial statements and in accordance with UK adopted IAS 34. Financial information for the period ended 30 June 2022 included herein is derived from the condensed consolidated interim financial statements for that period.

 

The condensed consolidated interim financial statements have not been reviewed or audited, nor do they comprise statutory accounts for the purpose of Section 434 of the Companies Act 2006, and do not include all of the information or disclosures required in the annual financial statements and should therefore be read in conjunction with the Group's 2022 annual financial statements, which were prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union.

 

Financial information for the year ended 31 December 2022 included herein is derived from the statutory accounts for that year, which have been filed with the Registrar of Companies. The auditors' report on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain a statement under Section 498 of the Companies Act 2006.

 

The condensed consolidated interim financial statements are presented in the Group's functional currency of Sterling and all values are rounded to the nearest thousand (£'000) except when otherwise indicated.

 

Accounting Policies

The accounting policies adopted in the preparation of the condensed consolidated interim financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2022 as described in the Group's Annual Report and financial statements for that year and as available on the Group's website (www.thepebblegroup.com).

 

Taxation

Taxes on income in the interim periods are accrued using management's best estimate of the weighted average annual tax rate that would be applicable to expected total annual earnings.

 

Forward looking statements

Certain statements in these condensed consolidated interim financial statements are forward looking with respect to the operations, strategy, performance, financial condition, and growth opportunities of the Group.  The terms "expect", "anticipate", "should be", "will be", "is likely to", and similar expressions, identify forward-looking statements. Although the Board believes that the expectations reflected in these forward-looking statements are reasonable, by their nature these statements are based on assumptions and are subject to a number of risks and uncertainties. Actual events could differ materially from those expressed or implied by these forward-looking statements.  Factors which may cause future outcomes to differ from those foreseen in forward-looking statements include, without limitation: general economic conditions and business conditions in the Group's markets, customers' expectations and behaviours, supply chain developments, technology changes, the actions of competitors, exchange rate fluctuations, and legislative, fiscal and regulatory developments.  Information contained in these financial statements relating to the Group should not be relied upon as a guide to future performance.

 

 

Alternative performance measures

Throughout the condensed consolidated interim financial statements, consistent with the Annual Report, we refer to a number of alternative performance measures ("APMs"). APMs are used internally by management to monitor business performance. The APMs that are not recognised under UK-adopted international accounting standards are:

 

·      Adjusted earnings;

·      Adjusted EBTIDA;

·      Adjusted operating profit; and

·      Adjusted operating cash flow.

 

See note 6 for the reconciliation of the APMs.

 

The Board considers that the above APM's provide useful information for stakeholders on the underlying trends and performance of the Group and facilitate meaningful year on year comparisons.

 

Key risks and uncertainties

The Group has in place a structured risk management process which identifies key risks and uncertainties along with their associated mitigants. The key risks and uncertainties that could affect the Group's medium-term performance, and the factors that mitigate those risks have not substantially changed from those set out in the Group's Annual Report which can be found on the Group's website (www.thepebblegroup.com).


Going Concern statement

The Group meets its day-to-day working capital requirements through its own cash balances and committed banking facilities. In assessing the appropriateness of adopting the going concern basis in the preparation of these consolidated interim financial statements, the Directors have prepared cash flow forecasts and projections for the up to 31 December 2024.

 

The forecasts and projections, which the Directors consider to be prudent, have been further sensitised by applying reductions to revenue growth and margin, to consider a severe but plausible downside. Under both the base and sensitised case the Group is expected to have headroom against covenants, which are based on interest cover and net leverage, and a sufficient level of financial resources available through existing facilities when the future funding requirements of the Group are compared with the level of committed available facilities. Based on this, the Directors are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the consolidated interim financial statements.

 

  

3.     SEGMENTAL ANALYSIS

The Chief Operating Decision Maker has been identified as the Executive Directors. The Directors have determined that the operating segments are Brand Addition, Facilisgroup and Central Operations.

 

Segment information about the above businesses is presented below:

 

Income statement for the period ended 30 June 2023

 


Brand Addition

Facilisgroup

Central operations

Period ended

30 June

2023


£'000

£'000

£'000

£'000






Revenue

54,153

9,164

-

63,317

Cost of goods sold

(36,188)

-

-

(36,188)

Gross profit

17,965

9,164

-

27,129






Operating expenses

(15,300)

(7,002)

(1,508)

(23,810)

Operating profit/(loss)

2,665

2,162

(1,508)

3,319

 





Analysed as:





Adjusted EBITDA

4,457

4,272

(1,249)

7,480

Depreciation

(783)

(295)

(37)

(1,115)

Amortisation

(670)

(1,554)

-

(2,224)

Share-based payment charge

(339)

(261)

(222)

(822)

Operating profit/(loss)

2,665

2,162

(1,508)

3,319

 





Finance expense

(176)

(22)

(68)

(266)

Profit/(loss) before taxation

2,489

2,140

(1,576)

3,053

 

 

 

 

 

Income tax (expense)/income

(612)

(526)

387

(751)

Profit/(loss) for the period

1,877

1,614

(1,189)

2,302

 

 

Due to the timing on the delivery of orders, the Brand Addition segment of The Pebble Group Plc traditionally raises a higher number of invoices in the period July to December which results in The Pebble Group Plc's performance being weighted to the second half of the year.  

 

All the above revenues are generated from contracts with customers.

 

 


Income statement for the period ended 30 June 2022

 


Brand Addition

Facilisgroup

Central operations

Period ended

30 June

2022


£'000

£'000

£'000

£'000






Revenue

52,926

7,390

-

60,316

Cost of goods sold

(37,099)

-

-

(37,099)

Gross profit

15,827

7,390

-

23,217






Operating expenses

(13,060)

(5,729)

(1,379)

(20,168)

Operating profit/(loss)

2,767

1,661

(1,379)

3,049

 

 

 

 

 

Analysed as:





Adjusted EBITDA

4,377

3,515

(1,194)

6,698

Depreciation

(825)

(291)

(18)

(1,134)

Amortisation

(518)

(1,359)

-

(1,877)

Share-based payment charge

(267)

(204)

(167)

(638)

Operating profit/(loss)

2,767

1,661

(1,379)

3,049

 

 

 

 

 

Finance expense

(185)

(9)

(51)

(245)

Profit/(loss) before taxation

2,582

1,652

(1,430)

2,804

 

 

 

 

 

Income tax (expense)/income

(620)

(396)

343

(673)

Profit/(loss) for the period

1,962

1,256

(1,087)

2,131

 

 

Income statement for the year ended 31 December 2022

 


Brand Addition

Facilisgroup

Central operations

Year ended 31 December 2022


£'000

£'000

£'000

£'000






Revenue

117,391

16,634

-

134,025

Cost of goods sold

(81,279)

-

-

(81,279)

Gross profit

36,112

16,634

-

52,746






Operating expenses

(28,155)

(11,624)

(2,744)

(42,543)

Operating profit/(loss)

7,957

5,010

(2,744)

10,223

 





Analysed as:





Adjusted EBITDA

11,467

9,011

(2,436)

18,042

Depreciation

(1,719)

(626)

(39)

(2,384)

Amortisation

(1,232)

(2,950)

-

(4,182)

Share-based payment charge

(559)

(425)

(269)

(1,253)

Total operating profit/(loss)

7,957

5,010

(2,744)

10,223






Finance expense

(388)

(13)

(119)

(520)

Profit/(loss) before taxation

7,569

4,997

(2,863)

9,703

 

 

 

 

 

Income tax (expense)/income

(1,495)

(689)

94

(2,090)

Profit/(loss) for the year

6,074

4,308

(2,769)

7,613

 

 


Statement of financial position as at 30 June 2023


Brand Addition

Facilisgroup

Central operations

As at

30 June

2023


£'000

£'000

£'000

£'000

ASSETS





Non-current assets





Intangible assets

38,095

22,258

-

60,353

Property, plant and equipment

5,744

2,750

235

8,729

Deferred tax asset

92

-

178

270

Total non-current assets

43,931

25,008

413

69,352






Current assets





Inventories

14,788

-

-

14,788

Trade and other receivables

32,039

4,568

294

36,901

Cash and cash equivalents

2,477

1,555

152

4,184

Total current assets

49,304

6,123

446

55,873






TOTAL ASSETS

93,235

31,131

859

125,225






LIABILITIES





Non-current liabilities





Lease liability

4,618

2,177

-

6,795

Deferred tax liability

-

2,370

-

2,370

Total non-current liabilities

4,618

4,547

-

9,165






Current liabilities





Lease liability

1,179

255

62

1,496

Trade and other payables

26,185

1,605

613

28,403

Current tax (asset)/liability

(56)

770

(317)

397

Total current liabilities

27,308

2,630

358

30,296






TOTAL LIABILITIES

31,926

7,177

358

39,461






NET ASSETS

61,309

23,954

501

85,764

 

  

Statement of financial position as at 30 June 2022

 

 

Brand Addition

Facilisgroup

Central operations

As at

 30 June

2022


£'000

£'000

£'000

£'000

ASSETS





Non-current assets





Intangible assets

37,840

20,925

-

58,765

Property, plant and equipment

6,903

3,231

60

10,194

Deferred tax asset

213

115

67

395

Total non-current assets

44,956

24,271

127

69,354






Current assets





Inventories

16,081

-

-

16,081

Trade and other receivables

34,813

3,769

5

38,587

Cash and cash equivalents

2,905

2,219

227

5,351

Total current assets

53,799

5,988

232

60,019

 

 

 

 

 

TOTAL ASSETS

98,755

30,259

359

129,373

 





LIABILITIES





Non-current liabilities





Lease liability

5,676

2,447

62

8,185

Deferred tax liability

-

3,751

-

3,751

Total non-current liabilities

5,676

6,198

62

11,936

 





Current liabilities





Borrowings

5,500

-

-

5,500

Lease liability

1,252

339

21

1,612

Trade and other payables

27,233

2,665

587

30,485

Current tax liability

393

18

(242)

169

Total current liabilities

34,378

3,022

366

37,766






TOTAL LIABILITIES

40,054

9,220

428

49,702






NET ASSETS

58,701

21,039

(69)

79,671

 

 

 

 

 

 

 

Statement of financial position as at 31 December 2022

 


Brand Addition

Facilisgroup

Central operations

As at 31 December 2022


£'000

£'000

£'000

£'000

ASSETS





Non-current assets





Intangible assets

37,863

22,139

-

60,002

Property, plant and equipment

6,449

3,004

39

9,492

Deferred tax asset

137

-

155

292

Total non-current assets

44,449

25,143

194

69,786






Current assets





Inventories

15,447

-

-

15,447

Trade and other receivables

29,989

4,648

56

34,693

Cash and cash equivalents

12,655

2,265

138

15,058

Total current assets

58,091

6,913

194

65,198






TOTAL ASSETS

102,540

32,056

388

134,984






LIABILITIES





Non-current liabilities





Lease liability

5,148

2,315

27

7,490

Deferred tax liability

-

2,860

-

2,860

Total non-current liabilities

5,148

5,175

27

10,350






Current liabilities





Lease liability

1,221

303

45

1,569

Trade and other payables

33,543

2,075

795

36,413

Current tax liability

258

805

-

1,063

Total current liabilities

35,022

3,183

840

39,045






TOTAL LIABILITIES

40,170

8,358

867

49,395

 





NET ASSETS/(LIABILITIES)

62,370

23,698

(479)

85,589

 

 

4.     INCOME TAX EXPENSE

The income tax expense for the period ended 30 June 2023 is based upon management's best estimate of the weighted average annual tax rate expected for the full year ending 31 December 2023. The income tax expense is higher than the standard rate of 23.5% due to higher standard income tax rates in overseas territories. The income tax expense for the year ended 31 December 2022 was higher than the standard rate of 19% due to higher standard income tax rates in overseas territories.

 


 

5.     EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the earnings attributable to equity shareholders by the weighted average number of ordinary shares in issue during the period.

For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all potentially dilutive ordinary shares. The Company has potentially dilutive ordinary shares arising from share options granted to employees. Options are dilutive under the Group Sharesave Plan (SAYE), where the exercise price together with the future IFRS 2 charge of the option is less than the average market price of the Company's ordinary shares during the period. Options under the LTIP schemes, as defined by IFRS 2, are contingently issuable shares and are therefore only included within the calculation of diluted EPS if the performance conditions are satisfied at the end of the reporting period, irrespective of whether this is the end of the vesting period or not.

The impact on basic earnings per share of the potentially dilutive share options issued under The Pebble Group Plc Long Term Incentive Plan on 21 December 2020, 8 June 2021, 29 March 2022 and 28 March 2023 and Group Sharesave Plan (SAYE) on 6 October 2021 and 25 April 2023 is £nil for the periods ended 30 June 2023 and 30 June 2022.

The calculation of basic earnings per share is based on the following data:

 

Statutory EPS

 

Unaudited

Period ended

30 June

2023

Unaudited

Period ended

30 June

2022

Audited

Year ended

31 December

2022

 

 

 

 

Earnings (£'000)

 



Earnings for the purposes of basic and diluted earnings per share

being profit for the period attributable to equity shareholders

2,302

2,131

7,613

Number of shares

 



Weighted average number of shares for the purposes of basic earnings per share

167,450,893

167,450,893

167,450,893

Weighted average dilutive effects of conditional share awards

600,871

-

185,624

Weighted average number of shares for the purposes of diluted earnings per share

168,051,764

167,450,893

167,636,517

Earnings per ordinary share (pence)

 



Basic earnings per ordinary share (pence)

1.37

1.27

4.55

Diluted earnings per ordinary share (pence)

1.37

1.27

4.54

 

Adjusted EPS

The calculation of adjusted earnings per share is based on the after-tax adjusted profit after adding back certain costs as detailed in the table in note 6. Adjusted earnings per share figures are given to exclude the effects of amortisation of acquired intangible assets, share-based payment charge and exceptional items, all net of taxation, and are considered to show the underlying performance of the Group.


Unaudited

Period ended

30 June

2023

Unaudited

Period ended

30 June

2022

Audited

Year ended

31 December

2022

Earnings (£'000)

 



Earnings for the purposes of basic and diluted earnings per share being adjusted earnings

3,479

3,153

9,675

Number of shares

 



Weighted average number of shares for the purposes of adjusted earnings per share

167,450,893

167,450,893

167,450,893

Weighted average dilutive effects of conditional share awards

600,871

-

185,624

Weighted average number of shares for the purposes of diluted earnings per share

168,051,764

167,450,893

167,636,517

Adjusted earnings per ordinary share (pence)

 



Basic adjusted earnings per ordinary share (pence)

2.08

1.88

5.78

Diluted adjusted earnings per ordinary share (pence)

2.07

1.88

5.77

 

See note 6 for the reconciliation of adjusted earnings.

 

6.     ALTERNATIVE PERFORMANCE MEASURES (APMs)

 

Throughout the consolidated interim financial statements, we refer to a number of APMs. A reconciliation of the APMs used are shown below:

 

Adjusted earnings:

 

Unaudited

Period ended

30 June

2023

Unaudited

Period ended

30 June

2022

Audited

Year ended

31 December

2022


£'000

£'000

£'000

Profit for the period

2,302

2,131

7,613

Add back/(deduct):

 



Amortisation charge on acquired intangible assets

709

677

1,420

Share-based payment charge

822

638

1,253

Tax effect of the above

(354)

(293)

(611)

Adjusted earnings

3,479

3,153

9,675

 

Adjusted EBTIDA:

 

Unaudited

Period ended

30 June

2023

Unaudited

Period ended

30 June

2022

Audited

Year ended

31 December

2022


£'000

£'000

£'000

Operating profit

3,319

3,049

10,223

Add back:

 



Depreciation

1,115

1,134

2,384

Amortisation

2,224

1,877

4,182

Share-based payment charge

822

638

1,253

Adjusted EBITDA

7,480

6,698

18,042

 

Adjusted operating profit:

 

Unaudited

Period ended

30 June

2023

Unaudited

Period ended

30 June

2022

Audited

Year ended

31 December

2022


£'000

£'000

£'000

Operating profit

3,319

3,049

10,223

Add back:

 



Amortisation charge on acquired intangible assets

709

677

1,420

Share-based payment charge

822

638

1,253

Adjusted operating profit

4,850

4,364

12,896

 

Adjusted operating cash flow:

 

Unaudited

Period ended

30 June

2023

Unaudited

Period ended

30 June

2022

Audited

Year ended

31 December

2022


£'000

£'000

£'000

Adjusted EBITDA

7,480

6,698

18,042

Deduct:

 



Movement in working capital

(9,638)

(14,815)

(3,362)

Capital expenditure

(4,036)

(3,548)

(8,379)

Leases

(919)

(929)

(1,737)

Adjusted operating cash flow

(7,113)

(12,594)

4,564

 

 

7.     INTANGIBLE ASSETS


Goodwill

Customer relationships

Software and Development costs

Work in progress

Total


£'000

£'000

£'000

£'000

£'000

Cost






Balance at 31 December 2021

35,805

10,241

21,321

423

67,790

FX difference on translation

312

1,014

1,207

38

2,571

Additions

-

-

2,189

827

3,016

Disposals

-

-

(15)

-

(15)

Balance at 30 June 2022

36,117

11,255

24,702

1,288

73,362

FX difference on translation

22

67

436

1

526

Additions

-

-

158

3,288

3,446

Disposals

-

-

(911)

-

(911)

Reclassifications

-

-

492

(492)

-

Balance at 31 December 2022

36,139

11,322

24,877

4,085

76,423

FX difference on translation

(168)

(530)

(655)

(188)

(1,541)

Additions

-

-

401

3,286

3,687

Reclassifications

-

-

3,644

(3,644)

-

Balance at 30 June 2023

35,971

10,792

28,267

3,539

78,569

 

 





Accumulated amortisation

 





Balance at 31 December 2021

-

1,647

10,469

-

12,116

FX difference on translation

-

166

453

-

619

Charge for the period                        

-

265

1,612

-

1,877

Disposals

-

-

(15)

-

(15)

Balance at 30 June 2022

-

2,078

12,519

-

14,597

FX difference on translation

-

5

425

-

430

Charge for the period                        

-

289

2,016

-

2,305

Disposals

-

-

(911)

-

(911)

Balance at 31 December 2022

-

2,372

14,049

-

16,421

FX difference on translation

-

(113)

(316)

-

(429)

Charge for the period                        

-

277

1,947

-

2,224

Balance at 30 June 2023

-

2,536

15,680

-

18,216







Net book value






At 31 December 2021

35,805

8,594

10,852

423

55,674

At 30 June 2022

36,117

9,177

12,183

1,288

58,765

At 31 December 2022

36,139

8,950

10,828

4,085

60,002

At 30 June 2023

35,971

8,256

12,587

3,539

60,353

 

The Group tests annually for impairment, or more frequently if there are indicators that goodwill might be impaired.

 

 

8.     PROPERTY, PLANT AND EQUIPMENT


Fixtures and fittings

Computer hardware

Right-of-use Assets

Total


£'000

£'000

£'000

£'000

Cost




 

Balance at 31 December 2021

3,892

3,226

12,784

19,902

Impact of foreign exchange translation

208

101

758

1,067

Additions

114

330

2,388

2,832

Disposals

-

(69)

(1,713)

(1,782)

Balance at 30 June 2022

4,214

3,588

14,217

22,019

Impact of foreign exchange translation

8

45

25

78

Additions

213

288

83

584

Disposals

(880)

(1,250)

(527)

(2,657)

Balance at 31 December 2022

3,555

2,671

13,798

20,024

Impact of foreign exchange translation

(115)

(77)

(624)

(816)

Additions

194

145

472

811

Disposals

-

(7)

(345)

(352)

Balance at 30 June 2023

3,634

2,732

13,301

19,667

 




 

Accumulated depreciation




 

Balance at 31 December 2021

3,133

2,323

6,519

11,975

Impact of foreign exchange translation

148

31

319

498

Charge for the period

107

216

811

1,134

Disposals

-

(69)

(1,713)

(1,782)

Balance at 30 June 2022

3,388

2,501

5,936

11,825

Impact of foreign exchange translation

6

67

20

93

Charge for the period

126

235

889

1,250

Disposals

(880)

(1,231)

(525)

(2,636)

Balance at 31 December 2022

2,640

1,572

6,320

10,532

Impact of foreign exchange translation

(92)

(48)

(220)

(360)

Charge for the period

245

205

665

1,115

Disposals

-

(4)

(345)

(349)

Balance at 30 June 2023

2,793

1,725

6,420

10,938

 

 

 

 

 

Net book value

 

 

 

 

Balance at 31 December 2021

759

903

6,265

7,927

Balance at 30 June 2022

826

1,087

8,281

10,194

Balance at 31 December 2022

915

1,099

7,478

9,492

Balance at 30 June 2023

841

1,007

6,881

8,729

 

 

 

 

 

 

Right-of-use Assets - net book value

 

Unaudited

Period ended

30 June

2023

Unaudited

Period ended

30 June

2022

Audited

Year ended

31 December

2022

 

£'000

£'000

£'000

Leasehold property

6,655

8,118

7,362

Fixtures and fittings

43

127

87

Computer hardware

183

36

29


6,881

8,281

7,478


 

9.     LEASES

Amounts recognised in the consolidated statement of financial position

In addition to the right-of-use assets included within note 8, the consolidated statement of financial position shows the following amounts relating to leases:

 

Lease liabilities

Unaudited

Period ended

30 June

2023

Unaudited

Period ended

30 June

2022

Audited

Year ended

31 December

2022


£'000

£'000

£'000

Maturity analysis - contractual undiscounted cash flows:

 



Less than one year

1,912

2,063

1,897

More than one year, less than two years

1,688

1,873

1,726

More than two years, less than three years

1,684

1,633

1,627

More than three years, less than four years

1,465

1,637

1,624

More than four years, less than five years

1,019

1,418

1,091

More than five years

1,611

2,685

2,207

Total undiscounted lease liabilities at period end

9,379

11,309

10,172

Finance costs

(1,088)

(1,512)

(1,113)

Total discounted lease liabilities at period end

8,291

9,797

9,059


 



Lease liabilities included in the statement of financial position:

 



Current

1,496

1,612

1,569

Non-current

6,795

8,185

7,490


8,291

9,797

9,059

 

Amounts recognised in the consolidated income statement

The consolidated income statement shows the following amounts relating to leases:

 

 

 

Unaudited

Period ended

30 June

2023

Unaudited

Period ended

30 June

2022

Audited

Year ended

31 December

2022

 

£'000

£'000

£'000

Depreciation charge - fixtures and fittings

644

788

1,655

Depreciation charge - computer hardware

21

23

45


665

811

1,700


 



Interest expense (within finance expense)

199

213

374





 

10. FINANCIAL INSTRUMENTS

The fair values of all financial instruments included in the consolidated statement of financial position are a reasonable approximation of their carrying values.

 

11. SHARE-BASED PAYMENTS

The Group operates equity-settled share-based payment plans for certain employees of the Group under The Pebble Group Plc Long-Term Incentive Plan (the 'LTIP') and The Pebble Group Plc Group Sharesave Plan (the 'SAYE').

 

On 28th March 2023, under the LTIP, the Group made awards of 1,655,496 conditional shares to certain Directors and employees. On 25th April 2023, under the SAYE, the Group granted awards of 417,932 conditional shares.

 

The Group recognised total expenses of £822,000 (period ending 30 June 2022: £638,000) in respect of equity-settled share-based payment transactions for the period ended 30 June 2023.

 

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