Pebble Beach Systems Share Discussion Threads

[packman8] 03/9/2021 13:56

Interim results due 8/9. Trading update was positive, so hopefully results should be same

[charlie] 31/8/2021 13:11

Clairfield International may be a bona fide firm. But you're probably not talking to them, because their website says this:

Clairfield International is not engaged in the trading of stocks and does not contact individuals regarding their stock portfolio or personal financial information. If you are an individual who has been contacted by someone claiming to be from Clairfield International regarding the sale of stocks and signing an NDA, disregard the message and block the sender. You may wish to contact your local authorities.

[zapa] 24/8/2021 08:52

Thanks p1nkfish.

[p1nkfish] 23/8/2021 22:06

A decent hire amongst a few, gearing up for growth.

[sharw] 31/7/2021 00:33

Offers are not made this way - undoubtedly a scam - they will at some stage ask for your bank details and/or an advance payment. See-

[p1nkfish] 30/7/2021 17:05

Sounds dodgy.
Some some good old fashioned Anglo-Saxon comes in handy then hang-up.

[pawncob] 30/7/2021 16:49

Anyone else had an offer from Clairfield International? they keep pestering me.

[sharw] 29/7/2021 16:26

"Finncap seem to have underestimated earnings a bit last year" - no, as far as I can see estimates were suspended due to covid uncertainties in April 2020 and were not reissued until the day last year's results were announced

[arthur_lame_stocks] 29/7/2021 11:13

Thanks for that jim, I took a look at the note. Finncap seem to have underestimated earnings a bit last year so hopefully they are too low for this.

[jim208] 28/7/2021 19:24

FinnCap do. Their last very detailed report was from 28th April.

You can register for free to access finnCap research via their portal:
hxxps://www.finncap.com/research-portal#/portal/finncap

[arthur_lame_stocks] 28/7/2021 14:15

Not a bad update today. Does anyone know if there are any broker forecasts for this year?

[p1nkfish] 10/6/2021 11:12

Totally agree and impressed they managed to prioritise R&D leading to this that will drive future growth,  "launch a number of new products and enhancements, expand into new markets and enhance our digital and online presence"

[norbert colon] 10/6/2021 10:26

Given the known legacy of PEB once being part of Vislink (VLK) via acquisition in Q1/2014 (the less said about John Hawkins the better…), I thought it was worth recapping on some history and taking a look at the potential valuation of the Group moving forward.

Further to PEB being acquired by VLK, the Group sold off its hardware division in early 2017 culminating in Hawkins being ousted (along with the whole Head Office function) and the Group being renamed Pebble Beach in keeping with its only remaining operating subsidiary.

This left PEB with GBP 12m of legacy borrowings, a huge sum for a GBP 5m mcap business (at that time) turning over GBP 10m annually and with a share price at a multi-year low.

Roll forward 4 years to today and the Group has reduced borrowings by GBP 3.5m to GBP 8.5m (net debt GBP 7.7m) and is paying these borrowings down at a rate of GBP 1m annually balanced alongside necessary R&D expenditure.

Whilst still high relative to profits (Net Debt/EBITDA of 2.75x), the Group has an excellent long-term relationship with their banking partner (Santander) and net debt is forecast to further fall to GBP 5.2m by FY22. Management have stated the debt is entirely manageable and whilst not ideal, I perceive (aside from the obvious impact on medium term profits) the prime frustration is its encumbrance on more quickly growing the business.

With respect to potential valuation of the PEB operating business you have a niche tech business that is dominant in its market, generating enviable gross margins in excess of 70%, EBIT margins of around 20%, ROCE of 30%+, cash generative and with 40% of recurring revenues yet it’s only valued on a PE of <10.

Despite its small size, I would suggest such a tech business deserves a much higher valuation in the order of 20x (min).

With PBT forecast to be circa GBP 1.7m and adding back GBP 1m of financing and Plc costs, the underlying PEB business will generate GBP 2.7m of profits in FY22.

Apply a PE of 20 (whilst allowing for the debt) gives a mcap of GBP 45m. At 25x this would be GBP 60m mcap. That’s 36-48p / share compared to the current 11p.

Whilst such a valuation ‘forecast̵7; is too simplistic, it does give food for thought re: how much the market undervalues this business.

The Group currently has a number of job adverts in the market noting “This is an exciting time for the Pebble business as we gear up to launch a number of new products and enhancements, expand into new markets and enhance our digital and online presence…̶1;.

With an industry wide migration from SDI to IP infrastructure (further fuelled by the pandemic) creating a nice tail wind for PEB, I think patient investors should be rewarded.

[onjohn] 08/6/2021 17:51

Was that said after the fd said he had a dodgy ticker

[p1nkfish] 08/6/2021 17:18

Pleasing to see R&D not suffering over the past year, wil result in new offerings.

[norbert colon] 08/6/2021 16:55

Yes an important clarification. Any funds raised would be for some complimentary technologies to broaden the Groups offering. The FD made an important point further on in the presentation about not issuing expensive equity in lieu of cheap debt just to fix the BS when they already have it well under control.

[jim208] 08/6/2021 16:50

What the FD actually said was, "I've got quite a bit of experience in acquisitions and I am hoping that we can raise some funds in due course to grow this business".

The company devised its currently strategy in 2018 and has executed against it since, incrementally paying down debt, spending decently on R&D to develop its offering and turning in profits.

Its worth noting that if you take 2020 PBT and add back finance costs (loan interest) and PLC costs, profits go up from £1.1m to £2.1m, so this is very nicely profitable. And that was for a Covid impacted year.

The debt is gradually reducing and imo it has passed the critical point where now, as the business grows, it incrementally becomes more and more easy to service the debt and bring it further under control.

This is a business where a closer look under the bonnet is well worth the time imo.

[zingerburger] 07/6/2021 19:01

£8.5m of debt And the FD says placing is coming on mellow
no wonder they trying to get mongs to buy

[melloteam] 02/6/2021 11:05

Just to let shareholders and prospective investors know that Pebble, Mailbox REIT and Accesso will be presenting at Mello Events webinar event on Monday 7th June at 6pm-9:30pm. There will also be an interview with leading Fund Manager Keith Ashworth-Lord, Founder and CIO, Sanford DeLand The Buffettology Fund.
There will be over 600 investors attending and these are very popular shows with company presentations, fund manager and investor interviews, and panel sessions including the popular Mello BASH (Buy, Avoid, Sell or Hold).
Tickets are still available and if you would like one at half price then enter the code MMTADVFN50.

[gleach23] 28/5/2021 14:01

Yes - good to see the move up on light volume - would indicate supply previously provided by any seller(s) may have dried up.

[thirty fifty twenty] 28/5/2021 13:01

moving up here on low volume.
maybe those deferred contracts from lcok down starting to show??

All IMHO, DYOR + BoL
PEB is in top5

[p1nkfish] 18/5/2021 23:35

When will we see the benefit of the increased R&D spend in terms of new offerings - anyone care to guess what and when?

[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!