Pebble Beach reports higher first-half revenue, profit

(Sharecast News) - Pebble Beach Systems on Wednesday reported higher revenue and profit for the first half of 2025, supported by a sharp increase in order intake and cost savings from earlier restructuring. Revenue for the six months ended 30 June rose 12% year-on-year to £5.9m, with project revenue up 20% to £2.6m and service level agreement income up 7% to £3.3m.

Order intake grew 33% to £6.5m, helped by strong renewals and favourable project timing, while North American sales more than doubled to £1.7m.

Adjusted EBITDA increased to £2m from £1.4m, with margins improving to 33% from 27%, reflecting both revenue growth and reduced overheads.

Profit before tax rose to £0.5m from £0.3m.

Net debt fell to £3.4m as at 30 June, compared with £4.8m a year earlier, as operating cash generation increased to £1.8m.

The AIM-traded company said strategic actions taken in the first quarter, including scaling back development of IP-only technologies amid slower adoption, had delivered annualised cash savings of about £2m.

The board reiterated its expectation of moving to a net cash position during 2026.

"Our strategic action announced in January, commenced and completed in the first quarter, has delivered the expected rebalancing which will result in annualised cash savings and sustainable free cash inflows increasing materially in 2025 and beyond," said non-executive chairman John Varney.

"Given the significantly improved cash generation expected to be delivered from the group, we remain focused on achieving a net cash position during the 2026 financial year."

Pebble said it entered the second half with a sales pipeline of £10.6m, up 8% from last year, and improved visibility over project revenues for the rest of 2025.

The board said it remained confident in meeting upgraded market expectations.

At 1155 BST, shares in Pebble Beach Systems Group were up 5.54% at 14.78p.

Reporting by Josh White for Sharecast.com.