Solid FY25 delivery and a fresh £5.0m buyback from The Pebble Group
The Pebble Group has posted audited full year results that were broadly in line with expectations and doubled down on capital returns. Revenue was steady, margins improved, and cash conversion was excellent. The headline today is a new share buyback of up to £5.0m, starting immediately, alongside a proposed final dividend of 2.00p per share.
The two engines, Facilisgroup and Brand Addition, continue to play different roles. Facilisgroup invested to accelerate Partner wins, which dampened short-term profit but should support growth in 2026. Brand Addition held revenues flat while lifting margins and landing more new work. Cash generation underpinned a chunky £11.7m returned to shareholders in 2025.
Key FY25 numbers and what stands out
| Metric | FY 25 | FY 24 | Change |
|---|---|---|---|
| Group revenue | £124.7m | £125.3m | -0.5% |
| Gross profit margin | 45.6% | 44.3% | +1.3ppt |
| Adjusted EBITDA | £15.8m | £16.7m | -5.4% |
| Operating profit | £7.4m | £8.6m | -14.0% |
| Profit before tax | £6.9m | £8.1m | -14.8% |
| Basic EPS | 3.45p | 3.83p | -9.9% |
| Basic adjusted EPS | 3.86p | 4.63p | -16.6% |
| Free cash flow conversion | 91% | 68% | +23ppt |
| Year-end cash | £9.6m | £16.5m | -£6.9m |
| Dividend per share | 2.00p (proposed) | 1.85p | +8.1% |
| Capital returns in FY25 | £11.7m | £3.4m | +£8.3m |
Free cash flow conversion is management’s preferred yardstick for cash efficiency. At 91% in FY25, it reflects tighter capex and working capital discipline and underwrites the dividend and buybacks.
Facilisgroup: faster Partner wins set up 2026 growth
What Facilisgroup delivered
- 30 new Partners signed in 2025 (FY24: 16) after c.$1m extra sales and marketing investment.
- Partner count at year end: 253 (FY24: 239) with a 97% underlying retention rate.
- ARR £16.4m vs £16.9m, stable in USD at $21.6m.
- Total revenue £17.2m vs £17.6m, stable in USD at $22.6m; FX headwinds reduced the GBP print.
- Adjusted EBITDA $9.6m (FY24: $11.2m) following the planned opex step-up. Capex reduced by $1.9m.
- GMV processed through Syncore up 5% to $1.6bn. Preferred Supplier purchases $0.5bn, flat year on year.
- Net Promoter Score improved to 50 (2024: 35).
Why it matters
Facilisgroup’s model combines subscription fees from Partners with transaction fees from Preferred Suppliers. The team now has clear evidence that the lifetime value of a Partner, at around $0.5m, justifies the acquisition spend. The lifetime value to customer acquisition cost ratio (LTV/CAC) is described as healthy, which is why Pebble is leaning into further investment to accelerate growth.
Management’s 2026 aim is to return the business to revenue growth and progress toward a “Rule of 40” profile, where revenue growth plus margin performance meets or exceeds 40. Early 2026 trading hints at a normalising purchasing pattern post tariff uncertainty, which would be supportive.
Brand Addition: flat revenue, better margins, more new wins
Operational highlights
- Revenue £107.5m (FY24: £107.7m). H2 improved, up 3.0% vs H2 24.
- Gross margin increased to 37.0% (FY24: 35.2%).
- Adjusted EBITDA rose to £11.4m with a 10.6% margin (FY24: 10.0%).
- Revenue from new client contracts invoiced in 2025: £6.5m (FY24: £5.3m).
- 97% retention of the top 30 clients in FY25.
Despite a tough backdrop and tariff noise, Brand Addition squeezed more value from its complex, end-to-end programmes and kept winning new work. The ambition remains disciplined: roughly 5% organic growth per annum with 10%+ EBITDA margins and 35%+ gross margins. With retention this strong and a broader service mix, that target looks sensible rather than heroic.
Cash, dividend and the new £5.0m buyback
FY25 was all about putting excess cash back in shareholders’ hands while staying debt free. Total capital returns hit £11.7m, made up of a £3.0m dividend, £2.2m of market repurchases and a £6.5m tender offer.
- Proposed final dividend: 2.00p per share, payable on 11 May 2026, subject to approval.
- New buyback: up to £5.0m starting today.
- Year-end cash was £9.6m. Cash at 16 March 2026 stood at £7.4m with a £10.0m undrawn revolving credit facility to February 2029.
The 2025 actions also shrank the share count materially. Shares in issue fell to 148,714,709 at 31 December 2025 after purchasing 16,061,645 shares during the year and completing a 10,655,737 share tender at 61 pence. A lower denominator should support per-share metrics, all else equal.
How I read the mix: positives and pressure points
What I like
- Cash generation is doing the heavy lifting. A 91% free cash flow conversion gives Pebble room to invest and return cash.
- Facilisgroup’s Partner momentum doubled, with retention still high at 97%. That is the flywheel the Group needs for 2026 growth.
- Brand Addition’s margin work is paying off. Lifting gross margin to 37.0% and EBITDA margin to 10.6% in a flat year is no mean feat.
- Shareholder-friendly moves: £11.7m returned in 2025 and a fresh £5.0m buyback announced today, plus an 8.1% increase in the dividend per share.
What tempers the enthusiasm
- Adjusted EBITDA and EPS both declined year on year as Facilisgroup investment came through and FX pinched GBP-reported figures.
- Operating profit and PBT were down 14% and 14.8% respectively. The investment case now relies on Facilisgroup converting Partner wins into revenue in 2026.
- Cash reduced to £9.6m at year end, and £7.4m by mid March 2026, reflecting deliberate capital returns. The undrawn £10.0m RCF helps, but execution needs to stay tight.
- Tariff and macro uncertainty remain watch items, even if early 2026 signs are more benign.
What to watch through 2026
- Facilisgroup revenue growth returning, supported by the 30 new 2025 Partners and continued wins in early 2026.
- LTV/CAC discipline at Facilisgroup as sales and marketing spend scales.
- Brand Addition revenue momentum as 2025 wins annualise, with gross margin holding around 35%+ and EBITDA margin at 10%+.
- Cash generation staying north of the Group’s >80% free cash flow conversion aim.
- Pace and price of the £5.0m buyback, and the impact on per-share metrics.
Bottom line
This is a tidy, if unspectacular, set of numbers that prioritises long-term value creation. Facilisgroup took short-term pain to accelerate Partner growth, which should feed through to revenue in 2026. Brand Addition quietly did the hard yards on margins and new business. The balance sheet remains robust, the dividend is edging up, and a fresh £5.0m buyback signals confidence in cash generation.
For those wanting more depth, the investor presentation is available on the Company’s site: thepebblegroup.com/investors. As ever, the proof will be in 2026 delivery, particularly at Facilisgroup. If revenue growth reappears as planned, FY25 may be remembered as the year Pebble primed the pump and bought back a lot of stock while doing it.
