Pebble Beach Systems Reports Strong H1 2025 Growth with 33% Order Increase and Improved Profitability

Pebble Beach Systems H1 2025: orders surge, margins up, and cash generation improves

Pebble Beach Systems has delivered a tidy set of half-year numbers. Orders jumped 33% to £6.5m, revenue rose 12% to £5.9m, and profitability stepped up thanks to cost actions taken in Q1 25. The business also tightened cash discipline, reducing net debt and improving visibility on the rest of the year.

The headline: the strategy reset is flowing through the P&L and cash flow, and the order book and pipeline give better line of sight into H2 25 and FY26.

Key numbers at a glance

Metric	H1 2025	H1 2024	Comment
Order intake	£6.5m	£4.9m	Up 33%, helped by strong SLA renewals and early project wins
Revenue	£5.9m	£5.3m	Up 12% year on year
SLA revenue (recurring)	£3.3m	£3.1m	Up 7%; recurring revenue represented 55% of Group revenue
Project revenue	£2.6m	£2.2m	Up 20% on favourable timing
Adjusted EBITDA	£2.0m (33% margin)	£1.4m (27% margin)	Margin expansion from cost actions and revenue growth
Cash generated from operations (pre interest & exceptionals)	£1.8m	£1.4m	Up 28%; cash conversion 101% of adjusted EBITDA
Cash EBITDA	£1.3m	£0.2m	Benefit of lower capitalised development costs
Profit before tax	£0.5m	£0.3m	Improved despite £0.75m non-recurring costs
Basic EPS / Adjusted EPS	0.4p / 0.8p	0.2p / 0.3p	EPS uplift on stronger trading
Gross bank debt	£4.1m	£5.1m	Down £0.5m in the last six months
Net debt (ex IFRS 16)	£3.4m	£4.8m	Down 28% year on year
Weighted pipeline	£10.6m	£9.8m	Up 8%; supports H2 25

Strategy reset is paying off – but watch the trade-offs

Pebble executed a strategic action in Q1 25 that rebalanced the cost base and narrowed focus on core broadcast playout and integrated channel solutions. Annualised cash savings are approximately £2.0m, achieved through reduced overheads and a lower level of research and development spend.

A clear proof point: capitalised development costs dropped to £0.6m from £1.2m, which helped lift Cash EBITDA to £1.3m from £0.2m. The board has also scaled back development of IP-only technologies because full-scale adoption is taking longer than expected. That boosts near-term cash, but it is a calculated risk if IP-native adoption re-accelerates. Investors should watch how Pebble continues to enhance existing products while keeping one eye on future technology shifts.

Revenue mix and regional momentum

Recurring support income remains the bedrock. SLA revenue rose 7% to £3.3m after pricing actions in FY24 and more multi-year contracts, providing better visibility. Project revenue was £2.6m, up 20% on favourable timing – important because it reduces the usual scramble to land Q4 projects.

Regionally, North America is the standout. The RNS highlights North American revenue growth of 125% to £1.7m for Q1 25, supported by wins with global streaming services bringing live content to their platforms. For the half year, the geographic split was: UK & Europe £2.5m, North America £1.7m, Middle East £1.2m, Latin America £0.3m, and Asia/Pacific £0.2m.

Margins, profit and cash: moving in the right direction

Adjusted EBITDA increased to £2.0m with a 33% margin, up from 27%. Management expects a further improvement in H2 25 as the full half-year of savings comes through. Despite £0.75m of non-recurring costs related to the January actions, the Group posted profit before tax of £0.5m and net profit of £0.46m. Basic EPS was 0.4p and adjusted EPS 0.8p.

Cash performance is healthier. Operating cash generation (before interest and exceptionals) was £1.8m, and cash conversion held at 101% of adjusted EBITDA. Cash at period end was £0.6m, gross bank debt was £4.1m, and net debt (ex IFRS 16) was £3.4m. The board continues to target a net cash position during 2026.

Balance sheet and facilities

Equity has improved, though still slightly negative at £0.13m compared with £0.49m negative at year-end 2024. The company is using all £4.1m of its available facilities and repaid £0.5m in the period. The loan agreement runs to 30 October 2026 with covenants and a repayment schedule in place. Management states it maintains a good banking relationship and is confident about any extensions required beyond that date.

Outlook: pipeline supports upgraded guidance

The weighted pipeline sits at £10.6m, up 8% year on year. Management says favourable project order timing has improved visibility of full-year project revenues and should reduce the usual Q4 pressure. With a solid sales pipeline and improved visibility of recurring revenues, the board remains confident in delivering against recently upgraded market expectations for the year. They also flag a focus on organic growth complemented by selective inorganic opportunities.

What looks positive

• Order intake up 33% to £6.5m and pipeline of £10.6m – good line of sight.
• Adjusted EBITDA margin up to 33% with scope for further H2 improvement.
• Cash generation strengthening – Cash EBITDA £1.3m and cash conversion at 101%.
• North America momentum, with revenue growth of 125% highlighted.
• Net debt reduced to £3.4m and gross bank debt down to £4.1m.

What to keep an eye on

• Non-recurring costs of £0.75m in H1 25 were sizeable – we should see these fall away.
• Negative equity of £0.13m – improved, but still a marker to watch.
• All bank facilities were drawn at 30 June 2025 – continued debt reduction is key.
• Reduced investment in IP-only technologies improves cash now but carries medium-term product risk if the market pivots faster than expected.
• Conversion of the £10.6m pipeline and maintaining SLA renewal momentum.

Jargon buster

• SLA revenue – Service Level Agreement income from support and maintenance contracts, typically recurring and higher visibility.
• Adjusted EBITDA – earnings before interest, tax, depreciation and amortisation, excluding non-recurring items and foreign exchange gains/losses.
• Cash EBITDA – adjusted EBITDA less capitalised development costs; Pebble’s internal measure of cash profitability.
• Capitalised development costs – R&D spend booked as an intangible asset to be amortised over time.
• Weighted pipeline – management’s probability-weighted view of potential orders.

My take

This is a solid first half. Pebble has done the heavy lifting on costs, and the benefits are clear in margins and cash generation. The shift to focus on core capabilities while easing off IP-only development looks sensible given adoption delays, though it’s a balancing act the team must keep reassessing.

With orders up, a larger pipeline, and better project timing, the perennial Q4 crunch should ease. Debt is coming down and the aim for net cash in 2026 feels credible if execution holds. The remaining watch points are negative equity, full facility utilisation, and ensuring product investment stays sufficient to capture future shifts in playout technology. Overall, a constructive update.