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(Alliance News) - Pebble Beach Systems Group PLC on Wednesday said its order intake fell in the first half due to "economic nervousness", but that it has confidence going forward thanks to a strong pipeline.
The Weybridge, England-based company, which provides software solutions for broadcasters and streaming services, said pretax profit for the first half of 2023 decreased 11% to GBP248,000 from GBP278,000 the prior year. Finance costs rose 59% to GBP291,000 from GBP183,000, keeping a lid on profit.
Cost of sales increased 15% to GBP1.4 million from GBP1.2 million. Sales and marketing expenses increased 34% to GBP1.3 million from GBP959,000.
Revenue rose 8.5% to GBP5.5 million from GBP5.0 million, with recurring revenue up 13% to GBP2.5 million from GBP2.4 million. Earnings before interest, tax, depreciation and amortisation rose 21% to GBP1.3 million from GBP1.1 million, while basic and diluted earnings per share were unchanged year-on-year at 0.2 pence.
Additionally, Pebble Beach said hardware delivery lead times were returning to pre-Covid levels, reducing its need for buffer stock.
Pebble Beach said its order intake however decreased around 12% on-year GBP4.4 million from GBP5 million, citing "economic nervousness" causing some clients to defer non-essential spending.
Pebble Beach declared no dividend for the period, unchanged from the year before.
Overall, Non-Executive Chair John Varney said Pebble Beach "has delivered a robust performance for the first half of 2023, despite a delay in new order intake."
"Our continued long-term aim of investing in new software solutions whilst reducing our overall indebtedness remains central to our strategy to ensure we continue to be well positioned to benefit from the industry transition to [internet protocol television] as full-scale adoption occurs," Varney added.
The company also noted the appointment in May of Chief Commercial Officer Neil Maycock, whose "considerable market experience" is expected to help Pebble Beach focus its commercial offering and obtain new orders.
Despite the drop in orders, Pebble Beach said its existing weighted pipeline remains strong, with its value up to GBP8.7 million in June from GBP7.4 million at the same time in 2022. This and current levels of customer engagement, it said, "provides management with confidence in delivering full year growth...highlighting the resilience of the company and its ability to deliver project backlog".
Varney added: "The board continues to have confidence that the group can deliver a strong second half with improved revenue and achieve the board's expectations for the year."
Pebble Beach shares were down 5.9% at 6.83p in London on Wednesday.
By Emma Curzon, Alliance News reporter
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