14th Jan 2025 16:58
Pebble Beach Systems Group PLC - Surrey, England-based software company - Expects to report results for the year ended December that are below market guidance. Predicts 2024 revenue of around GBP11.5 million and adjusted earnings before interest, tax, depreciation and amortisation of GBP3.3 million. This is down from GBP12.4 million and GBP3.8 million a year prior, and below a company compiled consensus of GBP13..4 million and GBP4.1 million respectively. Blames extended conversion times for project orders with customers delaying decisions on investing in new systems. Notes project orders in the period were down 2%, 35% of which were booked in December. More positively, highlights "significant" increase in recurring revenue, up 17% to GBP6.1 million from GBP5.2 million. Gross bank debt at December 31 was GBP4.6 million down from GBP5.6 million.
In response to weaker trading, Pebble Beach plans to scale back R&D at Prima - an IP native technology platform targeted at broadcasters. As a result, the company anticipates a "significant" reduction of the existing cost base. Estimates annualised cash savings of around GBP2 million and as a result, expects sustainable free cash inflows should also increase materially in 2025 and beyond.
Current stock price: 9.00 pence, down 7.8% in London on Tuesday
12-month change: up 13%
By Jeremy Cutler, Alliance News reporter
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