Pebble Group (AIM:PEBB), a technology services provider in the promotional products industry, saw its stocks surge on Thursday as it released a performance update showing decisive performance during the pandemic, revealing that full year results are on track to meet market expectations.
The FacilisGroup segment, the e-commerce platform for the North American promotional products business, has been “robust” through Covid Crisis. That number of PF participating partners increased from 149 to 169 in the previous year, with six more contracts signed, waiting for implementation.
The total product value process by IT partners is expected to reach $1 billion by the end of 2020. This will mark the promotional industry (product industry). Similarly, partner sales show a positive outlook for the promotional product industry in 2021.
“We continue to invest in the Fascilis Group to further improve our valued services to our partners and prioritized suppliers, and are increasingly positive about our business outlook,” the company’s statement said.
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The brand’s additional segment, which offers promotional products and related services to large brands, has been “continuing to improve” since the update that was delivered in September, with two major clients protected in the first quarter and now contributing to FY20’s revenue.
So far, sales orders averaged 70% in the previous year in the second half of 2020, but the company noted that there was positive momentum in 2021.
Pebble Group said: Client retention remains strong as all major clients who entered the period affected by Covid-19 in March 2020 remain clients today. ”
In total, the company said it remains on its balance sheet. It has repaid £6.5 million of its £10 million credit facility since its last update, and the group said it expects to repay all outstanding amounts by the end of the year. It added that it expects its cash balance to be similar to the previous year’s position £8.9 million after it included an IPO expense of £2.4 million in its previous year’s balance.
Looking ahead, Pebble Group Outlook reads: “FacilisGroup continues to be delivered in line with expectations and we are actively seeking opportunities to build on this success, organically and by strengthening our services through acquisitions.”
“Current trends in branded blue chip client-based order patterns really give us confidence when approaching 2021.”
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“Coupled with the strong balance sheet and the long-term nature of partner-client relationships, we are confident that we will manage our group responsibly through current volatility, meet market expectations for fiscal year 2020 and continue to provide the group’s strategy for fiscal year 2021 and beyond.”
Following the update, the company’s stock increased 20.66% to 104.38p, 20/11/26, respectively. This is below the post-lockdown high of 115.00p, but ahead of the last stage of its recent share of 71.00pa.
