Final Results

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR") as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, the inside information is now considered to be in the public domain for the purposes of MAR.

AIM: PEB  

PEBBLE BEACH SYSTEMS GROUP PLC

("Pebble" or "the Company" or "the Group")

A leading global software provider of

specialist automation solutions for the broadcast and streaming markets.

Final Results for the year ended 31 December 2025

Strong Results and Improved Platform for Future Growth

KEY POINTS

Financial

PROSPECTS

Tom Crawford, newly appointed Non-executive Chairman of Pebble Beach Systems Group plc, said,

"Pebble has delivered a strong performance, which reflects a combination of factors - the strategic actions taken in the first quarter of the year, higher revenue and margins, and focus on our growing base of recurring income.

"The Company has a firm platform from which to go forward and we expect the business to move into a net cash position in 2026. The balance sheet should continue to strengthen thereafter given the highly cash generative nature of the business, and this opens up further opportunities for us. Notwithstanding the current economic uncertainties arising from the situation in the Middle East, we expect Pebble to continue to progress and believe there are good prospects for ongoing growth and development over the medium term."

Notes

*Adjusted EBITDA is defined as operating profit or loss before depreciation, amortisation and impairment of intangibles, amortisation and impairment of capitalised development costs, share based payment expense or credit, non-recurring items and exchange gains or losses charged to the income statement.

**Adjusted basic earnings per share is calculated on the same basis as basic earnings per share except for the adding back of the after-tax effect of the adjustments for amortisation and impairment of acquired intangibles, share based payment expense or credit, non-recurring items and exchange gain or losses

***see note 5

**** The comparative figures for FY24 project have been restated to align them with FY25 where the value of the initial support and maintenance agreement ("SLA") has been excluded from the total value of new project orders and instead accounted for within the total value of support and maintenance agreements, which includes renewals and extensions.

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About Pebble Beach Systems Group plc

(www.pebbleplc.com)

Pebble Beach Systems Group plc (trading as Pebble) is a leading software provider of specialist automation solutions for the broadcast and streaming markets globally. Founded in 2000, Pebble's playout and integrated channel technology is used by international, national, regional and specialised broadcasters in over 60 countries, over 1,000 channels currently on air under the control of the Company's automation technology. Its product offering is widely considered as 'best of breed'.

NON-EXECUTIVE CHairman AND CHIEF EXECUTIVE's Report

INTRODUCTION

Pebble's results for the year show a significant improvement after the challenges of 2024. They are also ahead of original market expectations, as outlined in the trading update issued on 28 January 2026, with revenue up by 7% to £12.2m (2024: £11.5m) and adjusted profit before tax up by 2.7x to £3.0m (2024: £1.1m). On a reported basis, the Company moved into profit, with a profit before tax of £2.2m compared to a loss before tax of £1.3m in 2024. Our close focus on debt reduction, helped by the strongly cash generative nature of the business, resulted in a 49% decrease in net debt (excluding IFRS 16 leases) to £1.9m at the year-end (31 December 2024: £3.7m). The Company remains on track to move into a net cash position during the course of this year. 

These results are very encouraging and reflect three main factors; the benefits of the strategic decisions implemented in the first quarter of 2025, increased new orders and the Company's very robust and rising base of recurring income. New orders, from existing and new customers, include both project orders and recurring support and maintenance (also referred to as SLAs) agreements. The strategic actions taken refocused the Company's research and development priorities and reduced costs, resulting in the maintenance of strong cashflow from operations (excluding non-recurring items) of £4.0m (2024: £4.1m).

We have entered 2026 in a significantly improved financial shape, and trading in the first quarter of the new financial year has been encouraging. The Board's attention remains on increasing new orders from both new and existing customers, driving margins and profitability, with particular focus on building recurring revenues. We are well placed to continue to make good progress and to consider further options for growth. We view prospects positively.

Financial OVERVIEW

Group revenue for the 12 months to 31 December 2025 increased by 7% to £12.2 million (2024: £11.5 million). Recurring revenue, derived almost entirely from support and maintenance contracts (SLAs), grew by 8% to £6.6 million (2024: £6.1 million), with the increase reflecting price rises as well as additional new agreements and renewals/extensions. Recurring revenue accounted for 64% of total revenues excluding third-party hardware revenue (2024: 61% excluding third-party hardware) and provides good revenue visibility. Third-party hardware revenue is excluded from the percentage of recurring revenue as a proportion of total revenues in order to provide a better understanding of the Company's own revenue streams.

We secured a total of £13.9 million of new orders over the year, a 2% increase on the prior year (2024 restated: £13.6 million). Approximately £6.4 million of this total was new project orders (2024 restated: £5.1 million), either from new customers or from the existing customer base. Support and maintenance orders (comprising new orders, extensions and renewals) accounted for the balance, and amounted to £7.5 million (2024 restated: £8.5 million). Immediately following the year-end, a further £0.9 million of support and maintenance contracts (all renewals/extensions) were signed. The most important and valuable revenue of support and maintenance contracts remain a very reliable and visible income stream. This reflects both the typically very high level of annual renewals and the multi-year term of many agreements.

Growth in higher margin recurring revenue helped to drive an 8% increase in gross profit to £9.5 million (2024: £8.8 million), and gross margin improved to 78% (2024: 77%). Adjusted EBITDA rose by 27% to £4.2 million (2024: £3.3 million), and the adjusted EBITDA margin increased significantly to 34% (2024: 29%), principally due to portfolio focus and cost reductions.

During the year the Company incurred non-recurring costs of £0.8 million as part of the strategic restructure undertaken in Q1. 

The Company generated an operating profit of £2.6 million, compared to a loss in the prior year (2024: loss of £0.8 million, which included the one-off £2.7 million impairment charge).

R&D expenditure as a proportion of revenue reduced to 19.5% (2024: 24.3%) in line with the strategic decisions taken to scale back the development of Internet Protocol (IP) only technology, given soft market uptake. As a result, a lower level of development cost was capitalised and amortised in the year, at £0.9 million and £0.6 million respectively (2024: £2.2 million capitalised and £0.8 million amortised, excluding the impact of the one-off intangible asset impairment review).

Net finance costs decreased by 24% in 2025 reflecting the Group's repayment of £1.0 million of its term loan and a reduction in interest rates to 8.47% (2024: 9.77%).

Adjusted profit before tax (which excludes share-based expenses or credits, foreign exchange losses, non-recurring items and the impairment of intangibles) increased significantly to £3.0 million (2024: £1.1 million) and, similarly, adjusted earnings per share rose to 2.7p (2024: 0.9p). On a reported basis, the Company moved into profit, with profit before tax of £2.2 million (2024: loss before tax of £1.3 million) and reported earnings per share of 2.2p (2024: loss of 1.1p).

Cash Flow and Balance Sheet In April 2026, an extension to the existing loan facility was agreed with our bankers Santander, maintaining the Company's £3.6 million loan facility until 28 April 2028. As the loan agreement was not signed until April 2026, it is classified as a post balance sheet event, and in line with IAS 1, accounting treatment requires us to treat the full value of the loan as a current liability. However, it should be noted that this extension agreement has a repayment schedule of £1.0 million per annum, in line with the previous loan agreement.

Cash generated from operations was strong although lower than the prior year, with 94% of adjusted EBITDA converted to cash (2024: 126%), enabling us to continue to reduce debt levels significantly. The difference between the two years is accounted for by delayed receipts for support and maintenance (SLA) renewals/extensions. The Company closed the year with net debt (excluding IFRS 16 leases) down by 49% or £1.8 million to £1.9 million (31 December 2024: £3.7 million), with gross bank debt as at 31 December 2025 reduced to £3.6 million (31 December 2024: £4.5 million) and cash balances higher at £1.6 million (31 December 2024: £0.8 million).

OPERATIONAL OVERVIEW

We are very encouraged by the increase in new project orders booked, which was up by 25% year-on-year to £6.4m (2024: £5.1m). The existing customer base generated some 40% of this revenue, with the balance from new clients, secured mostly via our partner network.

Completed projects in the year included a new playout and integrated channel system for a national broadcaster in the Nordics. Our solution is supporting 28 channels for this existing customer, each channel broadcasting in multiple languages with highly complex workflows and the majority broadcasting live events. In a second phase of work for this customer in 2026, we will be supporting a move to a new location. We also completed the installation of our 'Pebble Playout in a Box' solution for a private broadcaster operating in Dubai, for use across six channels. The work was completed to a very tight deadline to meet a sports programme series. A new customer, a cable and satellite broadcaster based in Asia, required a new main playout and integration channel system, with multichannel disaster recovery system. It operates eight production channels and from engineering start to 'go-live', the project was completed over approximately eight months.

It is worth noting that of the eight new customers we added this year, two were streaming companies. Our advanced workflow automation technology has relevance in two critical areas for the streaming market, the incorporation of advertising within streaming companies' content and the broadcasting of live events. With streaming companies' models changing in this direction, we are optimistic of further opportunities for us. The new contract win, announced on 16 February 2026, with a Tier 1 US streaming company was driven by this new customer's move into live sports programming. Worth an initial £1.3 million over its five-year term, it was secured after a rigorous review process, driven by the customer's desire to adopt a highly configurable, 'best-of-breed' solution. The win will be a valuable reference customer for us and is another clear demonstration of Pebble's capability in live sports broadcasting. We expect the new relationship to deepen and grow over time.

We were delighted to recognise our long-standing customers and sales partners over 2025 as part of our own 25th anniversary. We used the leading industry trade shows and exhibitions, including BroadcastAsia (BCA) in Singapore, CABSAT in Dubai, and the International Broadcasting Convention (IBC) in the Netherlands, to present over 50 dedicated awards. The awards recognised five, 10, 15 and 20+ years of relationships, reflecting the depth and breadth of the Company's connections. There was a highly positive reaction to this initiative from our customers and partners.

We were also very pleased to receive the Gold Award (Playout Category) at the Digital Media World Awards 2025, which highlighted the reliability and feature-rich nature of our solution. We also won 'Best in Broadcast Playout' for 'Pebble Playout in a Box' at the BroadcastPro Middle East Awards and were delighted to be shortlisted as a Finalist for the 2025 ASBU BroadcastPro Middle East Innovative Project of the Year Award. This was for our collaboration with stc tv, the entertainment streaming service offered by STC Group across a number of countries in the region.

As previously reported, at the beginning of the year, we refocused the Company's research and development priorities and took the decision to scale back Internet Protocol native development. This was in light of slow market demand towards the full adoption of IP infrastructure and continuing preference for on-premises solutions or hybrid delivery models. The result is that we have freed up resource, reduced costs significantly and our R&D has been refocused on areas of greatest customer value. As previously reported, PRIMA, the new software platform we launched in April 2024 to support the transition to a cloud-based operating model, is no longer a core focus. However, importantly we have integrated its key benefits into our existing platform, which is capable of supporting all delivery models, on-premise, cloud-based and hybrid. Our reorganised R&D resource provides for clear accountability, enhanced efficiency, and faster delivery.

In the last six months we worked on developing an integrated AI and intelligent automation capabilities framework. Our core playout solution requires frame-accurate precision and is less suitable to AI but in mid-April 2026, we presented our AI integration vision at the National Association of Broadcasters (NAB) Show in Las Vegas. This is the world's largest annual convention for professionals in media, entertainment and technology, and we were encouraged by initial market reaction. We will continue to integrate AI tools into our platform and are well-positioned in this area. 

Our relationships with our sales partners are long-standing and remain strong. As well as being the principal conduit of new business, they bring local market knowledge, and we are encouraged by the potential new customers relationships in the pipeline.

BOARD CHANGES

On 1 December 2025, Non-executive Chairman, John Varney, retired from the Company after fourteen years of service, almost nine of which were as Chairman. On behalf of the Board, we would like to place on record our thanks to John for his significant contribution over many years. John's guidance and counsel were valued and much appreciated. John's successor is Tom Crawford, who joined the Board as Non-executive Chairman on 1 December 2025.

Tom has over 25 years' experience with publicly quoted companies, especially software businesses. He has a strong track record of building and growing international product-based software and services companies, both organically and through acquisition. He was previously Chief Executive Officer of Aptitude Software Group Plc, the listed global financial management software company, and led its successful expansion into North America and Asia Pacific, as well as into new market verticals. He was also previously Chairman of Attraqt Group, the AIM-quoted SaaS ecommerce solutions provider and Chairman of AIM-quoted K3 Business Technology Group, which provided business-critical software solutions. He is currently Chairman of Made With Intent, the real-time AI-driven ecommerce start-up.

After the reporting period, on 31 March 2026, Chris Errington, who represented Pebble's largest shareholder, Kestrel Partners LLP ("Kestrel"), on the Board, retired as a partner of Kestrel and therefore also stepped down as a Non-executive Director of Pebble on that date. The Board extends its thanks to Chris for his valuable contribution to the Company over the past five years.

In place of Chris, on 31 March 2026, Oliver Scott was appointed to the Board as a Non-executive Director, becoming Kestrel's new representative. Oliver also succeeded Chris as Chairman of Pebble's Remuneration Committee. Oliver is a Managing Partner of Kestrel.

DIVIDEND

The Company is currently unable to make distributions to shareholders. This is a result of historic accumulated losses on its retained profit and loss account within total equity. However, the Board believes it is now appropriate to commence the necessary legal processes to create distributable reserves through a reorganisation of the Company's existing reserves. This will place the Company in a position to start dividend distribution when appropriate. The proposed reorganisation of reserves will require shareholder approval at a general meeting and court sanction. We will update shareholders further in due course.

SUMMARY AND Prospects

The business made good progress over 2025. The actions we took to refocus our growth plans provide a firm base for further profitable, higher margin growth. The Company's model is delivering increasingly recurring revenues and is highly cash generative and we remain on track to achieve a key objective of moving into a net cash position in 2026, with the balance sheet expected to continue to strengthen thereafter.

Trading in the first quarter of the current financial year has started in line with expectations and the sales pipeline has encouraging opportunities in our core marketplace of international, national, regional and specialised broadcasters. We are also seeing more opportunities with streaming companies. As they shift to growth strategies, supported by advertising, and use live sports/events to attract subscribers, playout technology, like ours, becomes relevant. 

While there are currently general economic uncertainties, reflecting the situation in the Middle East, we believe that the Company is well-positioned to make good progress this year and remain confident of prospects for Pebble to grow and develop over the medium term.

consolidated STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED 31 DECEMBER 2025

consolidated statement of comprehensive income

FOR THE YEAR ENDED 31 DECEMBER 2025

consolidated statement of changes in shareholders' equity

FOR THE YEAR ENDED 31 DECEMBER 2025

consolidated statement of financial position

AS AT 31 DECEMBER 2025

consolidated statement of cash flows

FOR THE YEAR ENDED 31 DECEMBER 2025

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

for the year ended 31 December 2025

1. GENERAL INFORMATION

Pebble Beach Systems Group plc ("the Company") and its subsidiaries (together "the Group") is a leading global software business specialising in playout automation and content management solutions for the broadcast and streaming markets.

The Group employed over 50 people worldwide.

The Company is listed on the AIM market of the London Stock Exchange (AIM: PEB). For further information, visit IR Overview - Pebble Beach

The Company is incorporated and domiciled in the UK. The address of its registered office is Unit 1, First Quarter, Blenheim Road, Epsom, Surrey, KT19 9QN.

The registered number of the Company is 04082188.

This results announcement was approved for issue at close of business on 27 April 2026.

2. BASIS OF PREPARATION

The financial information contained in these condensed financial statements does not constitute the Group's statutory accounts within the meaning of the Companies Act 2006.

Statutory accounts for the year ended 31 December 2025 and 31 December 2024 have been reported on by S&W Partners Audit Limited (formerly CLA Evelyn Partners Limited) with an unmodified audit opinion and did not include references to any matters to which the auditors drew attention by way of emphasis and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.

Whilst the financial information included in this Annual Financial Results announcement has been computed in accordance with UK-adopted international accounting standards, this announcement, due to its condensed nature, does not itself contain sufficient information to comply with UK-adopted international accounting standards.

Statutory accounts for the year ended 31 December 2024 have been delivered to the Registrar of Companies. The statutory accounts for the year ended 31 December 2025, prepared under UK-adopted international accounting standards, will be available on the Group's website: https://www.pebbleplc.com and will be delivered to the Registrar in due course. The Group's principal accounting policies as set out in the 2025 statutory accounts have been applied consistently in all material respects.

3. GOING CONCERN

The Directors are required to assess the Company's and the Group's ability to continue to trade as a going concern.

At 31 December 2025, the Group's net debt (excluding IFRS 16 leases) was £1.9 million, comprising cash of £1.6 million and the term loan from Santander of £3.6 million.

We enjoy a close relationship with our bank and have regular review meetings with them. In April 2026, we agreed an extension to the existing loan through to 28 April 2028, maintaining the £3.6 million loan facility at the same level of commitment, with repayment levels of £1.0 million per annum consistent with previous years and appropriate financial covenants. There have been no breaches in financial covenants to date and no breaches are anticipated in the going concern period. Following the conclusion of the re-structuring process, management are forecasting a stronger cashflow forecast through 2026.

The Directors are confident that any loan extensions required post April 2028 would be granted on reasonably similar terms given the historic track record.

To assess the appropriateness of preparing financial statements on a going concern basis, management prepared detailed projections of the consolidated statement of profit and loss, the statement of financial position and cash flow statements through to 28 April 2027. This review period extends to April 2027, which is looking forward 12 months beyond the date of approval of these financial statements. The projections were tested against the debt service cover covenants required by the loan facility.

These projections used the forecast for 2026 and were updated for current trading and forecasts. This analysis was then extended to the end of April 2027. The projections were stress tested in two ways. Project orders for 2026 were reduced by 50%, then reduced by 50% with 20% loss in SLA revenue applied. The existing support service contracts, where revenue is recognised over time were assessed based on historic renewal rates, to establish the likely renewal of this recurring revenue. Management reviewed the levels of marketing and discretional bonus spend to mitigate any reductions in revenue. Even with the revenue drop, management concluded the business will remain a going concern. The Board has concluded from its thorough assessment of the detailed forecasts and ability to enact any mitigating actions, if required, that the Group will have sufficient resources to meet its liabilities during the review period through to April 2027, that it will meet the bank covenants and that it is appropriate that the Group and the Company prepare accounts on a going concern basis.

4. SEGMENTAL REPORTING

The Group's internal organisational and management structure and its system of internal financial reporting to the Board of Directors comprise of Pebble Beach Systems and PLC costs. The chief operating decision-maker has been identified as the Board.

The Board reviews the Group's internal financial reporting in order to assess performance and allocate resources. Management have therefore determined that the operating segments for the Group will be based on these reports.

The Pebble Beach Systems business is responsible for the sales and marketing of all Group software products and services.

GEOGRAPHIC EXTERNAL REVENUE ANALYSIS AND REVENUE BY STREAM

The revenue analysis in the table below is based on the geographic location of the customer for each business.

5. OPERATING PROFIT OR LOSS

The following items have been included in arriving at the operating profit for the continuing business: 

Non-recurring items

The following items are excluded from management's assessment of profit because by their nature they could distort the annual trend in the Group's earnings. These are excluded to reflect performance in a consistent manner and are in line with how the business is managed and measured on a day-to-day basis:

6. INCOME TAX EXPENSE

ANALYSIS OF THE TAX CHARGE IN YEAR

7. EARNINGS PER ORDINARY SHARE

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.

For diluted earnings per share the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The dilutive shares are those share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year. The average market value of the Company's shares for the purpose of calculating the dilutive effect of share options was based on quoted market prices for the year during which the options were outstanding.

Reconciliation of the earnings and weighted average number of shares used in the calculations are set out below.

*Due to the loss for the year for 2024 share options were anti-dilutive and so removed from the calculations for diluted EPS

Adjusted earnings

The Directors believe that adjusted EBITDA, adjusted earnings and adjusted earnings per share all provide additional useful information on annual trends to shareholders. These measures are used by management for internal performance analysis and incentive compensation arrangements. The term "adjusted" is not a defined term under IFRS and may not therefore be comparable with similarly titled profit measurements reported by other companies. The principal adjustments to earnings are made in respect of the amortisation of acquired intangibles, share based payment expense or credit, non-recurring items and exchange gains or losses charged to the income statement and their related tax effects.

The reconciliation between reported and adjusted earnings and basic earnings per share is shown below:

8. INTANGIBLE ASSETS

In accordance with the requirements of IAS 36 'Impairment of assets', intangible assets are required to be tested for impairment on an annual basis, or where there is an indication of impairment, with reference to the value of the asset or cash-generating units ("CGU") in question.

In the prior year, an impairment indicator was identified for one of our intangible assets, which forms part of capitalised development costs. This indicator related to an expected delay in the market adoption of IP technologies. As this delay persists, the impairment of £2.7m continues to apply and cannot be reversed in the current year. The asset belongs to Pebble Beach Systems Limited, the only operating segment in the Group.

The carrying value of capitalised development costs at 31 December 2025 is £2.8 million (2024: £2.5 million).

9. CASH FLOW GENERATED FROM OPERATING ACTIVITIES

Reconciliation of profit or loss before tax to cash generated from operations:

10. NET FUNDS

Reconciliation of net debt:

11. EVENTS AFTER THE REPORTING PERIOD

After the reporting period, on 31 March 2026 Chris Errington stepped down to retire as a Non-executive Director of Pebble, and Oliver Scott was appointed to the Board as a Non-executive Director on 31 March 2026. Oliver also succeeded Chris as Chairman of Pebble's Remuneration Committee.

In April 2026, an extension to the existing loan facility was agreed with the Company's bankers, Santander, maintaining the Company's £3.6 million loan facility until 28 April 2028. This extension agreement has a repayment schedule of £1.0 million per annum consistent with previous years and a new covenant test based on an EBITDA to debt-servicing cost ratio.