- Advertisement -

Pebble Group shares soar on resilient pandemic trading

Tech service provider to the promotional products industry, The Pebble Group (AIM:PEBB), watched its shares soar on Thursday as it published a performance update illustrating determined performance during the pandemic, and revealing that full-year results were on track to meet market expectations.

Its Facilisgroup segment – an ecommerce platform for promo products businesses in North America – performed ‘robustly’ through the COVID crisis. Its number pf participating partners rose from 149 to 169 during the year-to-date, with an additional 6 contracted and awaiting implementation.  

Gross Merchandise Value processes by it partners are now expected to hit $1 billion by the end of 2020, which would make Facilisgroup a ‘major consolidator’ in the promo [products industry. Similarly, partners’ sales are returning to pre-pandemic levels, with this indicating a positive outlook for the promo products industry in 2021.

 The company’s statement added: “We continue to invest in Facilisgroup to further improve its valued services to Partners and Preferred Suppliers and are increasingly positive about the business’ prospects.”

Its Brand Addition segment – which provides promo products and related services to large brands – have ‘continued to improve’ since the update delivered in September, with the two major clients secured in Q1 now successfully launched and contributing to FY20 revenue.

- Advertisement -

So far during the second half of 2020, sales orders have averaged 70% of the previous year, though the company noted that there was positive momentum going into 2021.

Pebble Group stated: “We believe this demonstrates the inherent strength of our clients’ businesses and their appetite for our products and services. Client retention has remained strong with all major clients that entered the COVID-19 affected period in March 2020 continuing to be clients today.”

 In total, the company said its balance sheet remains strong. Having paid off £6.5 million of its £10 million credit facility since its last update, the group said it expects to have repaid all of the outstanding sum by the end of the year. It added that it expects its cash balance to be similar to the prior year position of £8.9 million, after a settlement of £2.4 million of IPO costs included in the previous year’s balance.

Looking ahead, the Pebble Group outlook read: “Facilisgroup continues to deliver in line with expectations and we are actively seeking opportunities to build on this success by strengthening its services organically and through acquisition.”

“The current trend in order patterns of Brand Addition’s blue-chip client base gives us real confidence as we approach 2021.”

“Coupled with a strong balance sheet and the long-term nature of our Partner and client relationships, we are confident in managing the Group responsibly through the current volatility, meeting market expectations for FY 20 and continuing to deliver on the Group’s strategy in FY 21 and beyond.”

Following the update, the company’s shares rallied by 20.66%, to 104.38p apiece 26/11/20. This is below its post-lockdown high of 115.00p, but ahead of its recent nadir of 71.00p a share.