Company Announcements

17 January 2023

THE PEBBLE GROUP PLC

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

(AIM: PEBB)

TRADING UPDATE AND NOTICE OF RESULTS

FY 22 Results at least in line with market expectations

The Board of The Pebble Group, a leading provider of technology, services and products to the global promotional products industry, is pleased to announce that the Group's results for the year ending 31 December 2022 ("FY 22"), which will be announced on Tuesday 21 March 2023, will be at least in line with current market expectations.

Both Facilisgroup and Brand Addition traded well throughout FY 22. Group revenue will be circa £133m (FY 21: £115.1m), which is expected to generate Adjusted EBITDA approaching £18m (FY 21: £15.4m).

Facilisgroup has continued to deliver highly attractive profit margins in parallel to developing its technology product stack. In FY 22, revenue is expected to be over US$20m (FY 21: US$17.5m).

Our key indicators, which support Facilisgroup revenue growth in FY 23, are positive. Partners for our flagship product Syncore, at 31 December 2022 were 225 (31 December 2021: 206) with Gross Merchandise Value and spend through our Preferred Suppliers in FY 22 of US$1.40bn (FY 21: US$1.15bn) and US$0.46bn (FY 21: US$0.35bn) respectively.

As anticipated, the introduction by Facilisgroup of our new ecommerce product Commercio has resulted in increased interaction with our existing Syncore Partners and attracted new customers to the business. In total, at 31 December 2022 we had over 100 Commercio customers. This product's revenue model is linked to the number of stores hosted by these customers. Our understanding of Commercio's impact on Annual Recurring Revenue will increase as 2023 progresses and we gather intelligence on store numbers, customer acquisition and retention rates.

Brand Addition continued to successfully navigate macro supply chain disruption, with FY 22 revenue expected to be over £115m (FY 21:  £102.4m) delivered on increased gross margins compared to 2021.

Cash generation was ahead of expectations, with Group net cash (excluding IFRS 16 liabilities) at 31 December 2022 of circa £15m (31 December 2021: £12.1m).

The Board is pleased with progress in both Facilisgroup and Brand Addition. We continue to invest significantly into the acceleration of growth in Facilisgroup, whilst maintaining strong profit margins. We look forward to updating stakeholders further on the announcement of our FY 22 Final Results.

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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.