Uncertain economic climate hits profits at The Pebble Group

(Sharecast News) - The Pebble Group posted a slide in sales and earnings on Tuesday, as economic uncertainty weighed on client spending. Revenues at the AIM-listed firm, which supplies the global promotional sector with technology, products and other services, fell 4% in the six months to 30 June to £58.6m.

Operating profits were down 12% at £2.8m, while pre-tax profits dropped 10% to £2.6m.

Pebble said the "challenging" economic backdrop meant marketing budgets were "being tightly held".

During the period it secured new contract wins at merchandise agency Brand Addition, but that was partially offset by softening in some existing client spend.

However, Pebble said the 2025 full-year numbers remained on track to meet market expectations, driven by new contract wins at Brand Addition and 18 new partner wins at North American business Facilisgroup.

Christopher Lee, chief executive, said: "Our strong client and partner retention rates continue, as does the cash generative qualities of the group. The investment we have made to drive future organic growth has started to produce encouraging results.

"We remain confident about the group's prospects and ability to deliver sustainable earnings growth and create shareholder value."

As at noon BST, shares in Pebble were off 2% at 50.12p.