Pebble Beach Regulatory News (PEB)

Pebble Beach Systems Group plc

Trading update

Pebble Beach Systems Group plc (AIM: "PEB", "Pebble" or the "Group"), a leading global software business specialising in solutions for playout automation and content serving customers in the broadcast markets, provides the following unaudited trading update for the year ended 31 December 2018.

The Group expects to report results for the full year 2018 in line with management expectations with adjusted* operating profit improved materially to be in excess of £2.0m (FY17: operating profit £0.5m). Trading performance and operating cash generation improved significantly over FY17 through higher margins, securing new business, most recently the two significant orders announced in November 2018, and completion of a major cost reduction restructuring exercise. The Group's financial position improved with a reduction in net debt at 31 December 2018 to £9.4m (FY17: net debt £10.3m).

Going into 2019, we expect to build on the trading performance improvements delivered in FY18 whilst also improving our financial position further. The Group expects to announce audited results for the year ended 31 December 2018 in April 2019.

John Varney, Non-Executive Chairman, commented:

"The broadcast industry continues to face challenges as customers assess how best to invest in the evolving technologies of IP and cloud-based infrastructures whilst maintaining their traditional infrastructure. We are well positioned to respond to these challenges and look forward to focussing on the opportunities being presented in FY19 and beyond."

*Adjusted operating profit/(loss), a non-GAAP measure, is operating profit/(loss) before depreciation, the amortisation and impairment of goodwill and acquired intangibles, the amortisation of capitalised development costs, non-recurring items and foreign exchange gains

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The Company is listed on the LSE AIM market (PEB.L). More information can be found at www.pebbleplc.com.

About Pebble Beach Systems Limited

Pebble Beach Systems Limited (Pebble) is a leading developer and supplier of automation, channel in a box, integrated and virtualised playout technology for TV broadcasters, service providers, and cable and satellite operators. Founded in 2000 and headquartered in Weybridge, Surrey, Pebble has developed a portfolio of successful products which have the flexibility to support a wide range of broadcast applications with scalable products designed for highly efficient multichannel transmission as well as complex news and sports television. Installed in more than 70 countries and with proven systems ranging from single up to over 150 channels in operation, Pebble's international client base includes TV Globo Brazil, Fox News and Business channels USA, ZDF Germany, Orbit Showtime Network UAE, TV4 Sweden, TV2 Denmark, MTG UK, DMC in the Netherlands and AMC Networks Inc. USA.