Pebble Beach Systems Share Discussion Threads

[p1nkfish] 28/4/2021 15:20

Getting acquisitions right would be rocket fuel but its the risk that puts me off. Have seen too many screw it up. I'm reall keen on PEB. Was in a while back near lows but exited too early!

[thirty fifty twenty] 28/4/2021 14:42

thanks g23 + pinkfish - the idea of them doing acquisitions were off my radar. My met David D a few times when he was CFO at NFC back at 40p! so would rate him as a good plan of hands. i think would be crazy issuing shares at these levels, so fingers crossed they get the word out (a la Finncapp 20p target) and get the price up before any acquisitions. NFC did a heap of acquisitions - most years i think.
Note the clever trick by Nicola at RBGP.. they agreed a deal last November, but didnt issues shares to complete until recently. the shares went from 70p to 120p before they signed the dotted line. Would be good to see a similar % rise here.... any acquisiton would enable those head office costs of 1.1m to be spread across 2 businesses.

i see 2m traded now - that is 5% of free float excluding top5 holders.

All IMHO, DYOR + BoL
PEB is in my portfolio

[p1nkfish] 28/4/2021 14:12

tft, it was mentioned when new cfo joined as per g23 comment, post 115, in the RNS

[gleach23] 28/4/2021 14:07

Pleasing to see the apparent shortage of stock currently - just 1k shares showing as available to buy online at the moment @ 10.5 with good demand @ 10.1 on the Bid

[packman8] 28/4/2021 13:54

They did bring in an experienced financial officer David Dewhurst last October to shape their M&A strategy going forward.

[thirty fifty twenty] 28/4/2021 13:52

hi Pinkfish, have mgt said that they intend a buy and buildstrategy - i'd missed that. i thought the big focus was on debt reduction (which they doing well)

the banks have supported the biz since vislink business sold,and kestrel bgt sharesallthe way up, so i dont see why they wouldraise funds now when it forecast that debt will be comfortably below 2 times ebitda within 15mths.

if they were to do acquisitions i think they would go on a road show to get the equity price higher firstofall - note that finncapp has set a 20p target today.that seemsrich to me but 15p quite possible within 12mths

AllIMHO, DYOR +BoL
PEB is in my portfolio

[thirty fifty twenty] 28/4/2021 13:46

hi Arthur - agree with your points.

the poor balance sheet is b/c they got left with 12m from the directors of vislink. when vislink bgt PEB , PEB had 5m CASH on its balance sheet, and since 2017 PEB has reduced CASH whilst also updating its product suite,such that now the brokers are forecasting debt reduced materially to 5m by 2022.

All IMHO,DYOR + BoL
PEB is in my portfolio

[p1nkfish] 28/4/2021 13:03

My thinking is 40p+ Arthur. Margins are good, debt is coming down even this year and the increase in r&d spend looks like a good flag for the future growth.

My one concern is aquisitions and can they be done in a way best beneficial to existing shareholders.

A sudden announecement of a funding round would not surprise me and allow Kestrel to add even though already at 29%.

If they acquired well it coud help dilute the debt burden but buy and build makes me nervous unless management have a proven track record of doing it well.

[arthur_lame_stocks] 28/4/2021 09:34

I thought today's results were pretty robust in a difficult year so I bought another 50k.

Importantly order intake is up by 86% in the first quarter so hopefully they will have a better year this time. The balance sheet is poor but is improving all the time and the company generates lots of cash.

I think Kestrel will wait a couple of years for trading to return to normal and then force a trade sale at 20p+.

[p1nkfish] 26/4/2021 12:56

Still 250K chunk for sale.

[p1nkfish] 22/4/2021 10:14

250K for sale, might help clear Polar?

[p1nkfish] 20/4/2021 16:53

Polar might still be reducing, now <3% no need to announce and Kestrel already 29% so can't absorb 2%+ that could come to market.

[p1nkfish] 20/4/2021 10:12

Pete Mayhead and David Dewhurst working on M&A.
Potentially risky and dilutive.
Had fingers burnt by buy & build unless real skill and luck involved.

[p1nkfish] 20/4/2021 10:11

Primary concern is M&A strategy and paying for it.
Debt can be eroded but M&A likley to be through dilution.
Some looking to exit and this may be a reason.
No way to know yet but suspect PI's will not be invited to any party.

[gleach23] 12/4/2021 22:15

Yes a noteworthy volume day with 1.7m shares traded by the close. There would appear to be an overhang to clear as the high volume from Fri and today hasn't budged the share price That said, the trades were made @ 9.15 on Fri and were up to 9.25 today.

Curious as to the sudden buying interest. Results due "late April".

[packman8] 12/4/2021 11:34

Volume high over last few trading days, with quite a few 100000 purchases.
Someone building a stake?

[arthur_lame_stocks] 16/3/2021 16:40

I bought some of these today. I think even with all that debt they are worth twice the current price in a trade sale and with Kestrel owning nearly 30% I expect some action here in the foreseeable future.

A nice quiet board too.

[thirty fifty twenty] 12/1/2021 16:26

hi timothy

indeed nice move.
it takes the price back above the rising 200d which is a good chart indicator.
with their excellent CASH flow i am holding b/c i think they will be taken over - the EV multiple is just too low which makes it very attractive to a buyer with CASH or access to cheap debt.

time will tell.

All IMHO, DYOR + BoL
PEB is in my top5 hldgs

[timothyo6] 12/1/2021 15:48

On the move nice one

[tardelli2] 03/1/2021 13:33

Hi , I'm wondering if anyone could advise ? I'm still holding several certs in Vislink , can I still sell these or do I have to contact the registrar to issue a new cert for peb ? Thanks

[norbert colon] 15/9/2020 07:39

hTTps://youtu.be/y7swFVCeJngPEB's new Oceans tech.

[norbert colon] 10/9/2020 15:19

https://www.tvbeurope.com/business/tvbeuropes-best-of-show-awards-winners-announced:PEBs new 'Oceans' media orchestration platform is on the list.

[ali47fish] 26/8/2020 07:53

finncap note

Interims to June
Pebble Beach Systems has reported interims to June2020,reflective of the global challenges posed by COVID-19. Revenue declined 20% to £4.5m (1H19: £5.6m) as prospective customers cautiously delayed large-scale broadcast infrastructure projects in the immediate term. This maskedrobustperformance in SLA contract renewals, increasing to 42% of group revenue from 31% YoY (£1.9m; 1H19: £1.9m),deliveringa greater proportion of recurring business during the period. Whilst cognisant of the potential impacts of COVID in H2, the board remains focused on maintaining its market-leading position through ongoing innovation, and optimising the business through leveraging cost efficiencies and de-gearing the debt balance. The group entersH2 with a strong order backlog(£4.1m)and a growing pipeline, underpinned by recurring SLA renewals, leaving the board confident onthe outlook for FY20. Pebble Beach Systems delivered adjusted EBITDA of £1.5m(1H19: £2.0m) from revenue of £4.5m (£5.6m), and adjusted PBT of £0.8m (£1.1m). Margins remained broadly constant, with the gross margin and EBITDA margin expanding HoH (281 bps and 129 bps respectively) as the long-term focus on cost optimisation continues to bear fruit. Free cash flow improvement to £0.7m(1H19: £0.4m; 2H19: £0.6m) and gross cash of £1.4m (1H19: £1.1m) contributed to a reduction in net debt to £7.8m (FY19: £8.4m), as the group continues to pay down its RCF, currently fully drawn at £9.2m (1H19: £10.1m; FY19: £9.6m).Robustperformance in SLA contract renewalswasdiluted by softening in new project orders, as H1 order intake fell26% to £3.9m (1H19: £5.2m). Whilst it is too early to determine the speed and timing of a rebound in activity, the market is not expected to decline,and delayed projects are expected tohave merely been postponed. With a growing pipeline and order backlog of £4.1m, the board remains confident inthe FY20 outlook, although caveat a likely extension to the sales cycle.Investment case remains strong:The business has transformed since the 2018 restructuring, commendably streamlining the cost base whilst simultaneously delivering growth (pre-COVID) and investing for future growth. Althoughmarket momentum hastemporarily stalled, PEB is well placed to leverage the ongoing shift toIP-based broadcastsolutions, boostedbythe global referenceability offered by its customer base. We notethat COVID-19pressures across the market may also offer the chance for opportunisticM&A to supplement the group’s organic growth strategy

[thirty fifty twenty] 25/8/2020 16:11

the board is quiet today before the results tomorrow.
obviously some buys later this afternoon think they can make a quick turn.
I'm in for the longer term, but chart and sector sentiment look very good so i am hopeful for positive news tomorrow.

All IMHO, DYOR + BoL
PEB is in my top 5 hldgs