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Aim listed UK software vendor Pebble Beach Systems (Pebble) who specialise in playout, content management, and IP control solutions for the broadcast and media technology markets, reported revenues for FY24 of £11.5m, down -7% as the business failed to translate a 24% increase in orders into top line growth.
Industry conditions remain challenging for Pebble, with customers tending to look to hybrid operating models, thus delaying full adoption of IP (Internet Protocol) infrastructure. This, along with the timing of project orders (45% of project orders were received in December 2024), has led to the Group reporting results below initial market expectations, with a 25% reduction in project revenue yoy. However, recurring revenues continue to increase, with support, maintenance and subscription arrangements up 17% to £6.1m.
In 2024, Pebble introduced a new technology platform PRIMA (Platform for Real-time Integrated Media Applications). Demand has not however met expectations, with initial high interest in the platform not translating into orders as the industry remained cautious on the adoption of cloud native IP solutions for mission critical broadcast software. As a result, the Board took the view that specific PRIMA R&D should be scaled back until such time as market demand warrants further investment.
The short-term focus will be on the existing core capabilities as a broadcast solutions specialist. Pebble will continue its development of its existing playout and integrated channel products and services for current customers and new prospects. As a result of these actions, the company has significantly reduced its existing cost base with estimated annualised cash savings of approximately £2m. FY25 has started in line with expectations, and the business is already seeing the benefits of the cost saving initiatives and strategic actions taken during Q1.
Posted by: Simon Baxter at 09:40
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media