Pebble Beach Regulatory News (PEB)

Pebble Beach Systems Group plc

Trading Update

and

Notice of Half-Year Results

Pebble Beach Systems Group plc (AIM: "PEB", "Pebble" or the "Group"), a leading global software business specialising in playout automation and content management solutions for the broadcast and streaming service markets, is pleased to provide the following trading update for the half-year ended 30 June 2022.

The Group expects to report modest growth in revenue of 3% on the comparative period of 2021. In addition, the level of orders, when compared with H1 21 orders after adjusting for Covid-related delays that benefitted that period, were also modestly up. There are still challenges in the supply of certain hardware components both in timing of availability and cost that impacted the timing of delivery and will continue to lead to some delivery delays. We continue to mitigate this with measured inventory build.

The business environment is opening up again with trade shows and travel a welcome feature of the first half of the year. We also continued to add headcount allowing us to remain focussed on the development of our next generation, cloud-native solutions in line with our mission to support broadcasters as they transition from traditional broadcast infrastructure to more flexible IP-based technologies. The increased expenditure was part of our plan and consequently there has been a reduction in our adjusted EBITDA margin in H1 22 to 26%, compared with the same period last year (H1 21: 35%).

As with last year, the Board expects the year to be second half weighted in terms of revenue and we also expect the adjusted EBITDA margin to return to more normalised levels, targeting 30% margin in the second half, both of which will have a corresponding benefit to adjusted EBITDA. The forward order book and pipeline gives us confidence that we will deliver improved revenue performance during the second half of the year and achieve market expectations for the full year.

The results for the half-year ended 30 June 2022 will be announced in early September 2022.

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