Pebble Beach Systems Group (AIM:PEB), the AIM-listed provider of automation software for broadcast and streaming customers, grew adjusted pre-tax profit by 73% to £1.9m in the six months to 30 June, up from £1.1m a year earlier.
Revenue rose 10% to £6.5m, split between a 19% jump in project revenue to £3.1m and a 6% rise in recurring support and maintenance revenue to £3.4m.
The project revenue gain reflected favourable timing of high-margin software licence deliveries, pushing adjusted EBITDA up 25% to £2.5m and the margin to 37% from 33% a year earlier; the Board expects licence revenue to fall as a proportion of sales in the second half, normalising margins.
Annualised recurring revenue reached £8.1m at period end, up 20% from £6.7m at the end of December, helped by strong SLA renewals and four new Tier 1 customer wins, including broadcasters in Singapore and Australia and streaming companies in the US and Romania.
Net debt excluding lease liabilities fell 76% to £0.8m from £3.4m a year earlier, with the company repaying £0.5m of bank debt and targeting a net cash position by the end of 2026.
Statutory profit before tax climbed to £1.8m from £0.5m, and statutory basic earnings per share rose to 1.5p from 0.4p.
"Pebble has delivered encouraging first-half results, in line with management expectations," said Tom Crawford, non-executive chairman, adding the group's order book and pipeline support "confidence" in full-year forecasts.
News Intelligence what this means for the company
Pebble Beach Systems posted a 73% jump in adjusted pre-tax profit to £1.9m on 10% revenue growth, driven by strong project licence timing and a 20% surge in annualised recurring revenue to £8.1m. The company has slashed net debt by 76% to £0.8m and secured four Tier 1 customer wins across broadcast and streaming, positioning it to hit full-year guidance with management citing a healthy order book and pipeline.
The profit surge is partly timing-driven—management expects project revenue to normalise in H2, which will compress margins back toward the 34% full-year baseline. The real momentum lies in recurring revenue growth (20% annualised) and debt reduction, which improve the company's financial flexibility and reduce refinancing risk as it targets net cash by end-2026.
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