Tech firm Pebble Beach Systems reports ‘strong sales pipeline’ despite market challenges

Tech firm Pebble Beach Systems expects a positive year ahead as the software group reported a “strong sales pipeline” despite challenging market conditions.

The firm, which specialises in playout, content management and IP control solutions for broadcast and media tech markets, reported a 21 per cent jump in Service Level Agreement (SLA) revenue to £3.1m, up from £2.5m the year prior.

Overall group revenue for the six months to 30 June 2024 fell slightly to £5.3m, down from £5.5m in 2023. Profit before tax for the AIM-listed firm was £0.3m, up from £0.2m.

Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) was level at £1.4m.

However, the firm reported an “improved” EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of 27 per cent due to its increase in service-level agreement (SLA) revenue.

John Varney, non-executive chairman of Pebble Beach Systems, said: “The group continues to demonstrate resilience with increased order intake in spite of ongoing challenging external market conditions causing customers to continue delaying decisions on upgrades.”

Varney said Pebble Beach Systems Group entered the second half of the year with a “strong sales pipeline alongside improved visibility and value of recurring revenues.”

Based on “historical trends and a strong order book,” Varney added that the board expects there to be an increase in project orders in the six months ahead.

Varney added: “Given the continued momentum being seen by the group, the board is focused on driving further organic growth complemented by inorganic growth, when appropriate, as opportunities to enhance our technology are identified.”

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