Half-year Results

Unaudited interim results

for the half-year ended 30 June 2026

Strong profits growth, strengthened balance sheet and well placed for further growth

Financial highlights

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Tom Crawford, Non-executive Chairman of Pebble Beach Systems Group plc, said:

"Pebble has delivered encouraging first-half results, in line with management expectations. We won four new Tier 1 customers, completed some important installations and increased recurring revenue. The business is well-placed to deliver our full year forecast. This confidence is underpinned by our strong order book, expected annual support and maintenance contract renewals and continuing market demand.

"Pebble continues to generate very healthy cash flows and its balance sheet is strengthening, with a net cash position expected to be achieved by the end of 2026. We view prospects for the Group with confidence."

Notes

1 Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) a non-GAAP measure, is EBITDA before non-recurring items and foreign exchange gains/losses.

2Adjusted profit before tax, a non-GAAP measure, is profit before tax with foreign exchange gains/losses and non-recurring items added back, giving a clearer view of underlying trading performance without the distortion of FX volatility or one-off items

3 Adjusted basic earnings per share is calculated on the same basis as basic earnings per share except for the adding back of the after-tax effect of the adjustments for amortisation and impairment of acquired intangibles, share based payment expense or credit, non-recurring items and exchange gains/ losses

4 Non-recurring items are excluded from management's assessment of cash flow because by their nature they could distort the annual trend in cash flow

CHAIRMAN'S STATEMENT

Introduction

Pebble's first-half results are encouraging and reflect continuing trading momentum and the broadcast market's ongoing recognition of our 'best of breed' product for advanced workflow automation.

The order book shows healthy growth, with a number of new customers added, including streaming companies, as well as further project work for existing customers and high renewal levels of support and maintenance contracts ("SLAs").

Pebble's SLAs are the bedrock of its recurring revenue and, at the end of June 2026, the Company's annualised recurring revenue was up to £8.1 million.

We are continuing to invest in our people and in our technology and believe that the Company is well-placed to make further progress in 2026 and beyond. This is supported by Pebble's strong cash flows and a strengthening balance sheet, which we expect to show a net cash position by the end of 2026.

Financial performance

Revenue rose by 10% over the period to £6.5 million (H1 25: £5.9 million), with both project revenue and recurring revenue contributing increased levels year-on-year. There was an especially strong contribution from project revenue, which was up by 19% to £3.1m in the first half (H1 25: £2.6m). This mainly reflected the favourable timing of software licence deliveries in the period. Recurring revenue, generated principally from support and maintenance contracts ("SLAs"), contributed £3.4 million to the overall result (H1 25: £3.3 million), a rise of 6% year-on-year.

A key measure for the Company is annualised recurring revenue, which stood at £8.1 million as at 30 June 2026, 20% higher than at the close of the financial year (31 December 2025: £6.7m). This figure was underpinned by very good renewal levels of SLA contracts in the period as well as by contract expansions and new customer contracts, which start revenue recognition after project delivery. SLA contracts are typically renewed annually with customers.

Total new orders* secured in the first half amounted to £6.3 million (H1 2025: £5.8 million), 9% higher than the same period last year. SLA contracts made up £3.2 million of this total (H1 2025: £2.6 million) while new project orders accounted for the balance at £3.1 million (H1 2025: £3.2 million). The existing customer base generated the majority of these new project orders and we added some notable new customer wins in the period.

Adjusted EBITDA1 result rose by 25% to £2.5m (H1 25: £2.0m) and adjusted EBITDA margin increased by 400 basis points to 37% (H1 25: 33%). These outcomes benefited from the favourable timing of software licence deliveries (which carry higher gross margins) as well as by ongoing careful cost control. The increase in administration costs is a result of the timing of discretional spend being recognised earlier in the year.

As mentioned in the July trading update, first half profitability reflected the phasing of these software licence sales, which carry high gross margins and are recognised on software delivery. The Board currently expects that software licence revenue will represent a lower proportion of total revenue in the second half and therefore that Adjusted EBITDA margins will return to more normalised levels in the second half.

The fruits of last year's strategic decisions alongside Pebble's good first-half trading performance, helped to deliver a 73% improvement in adjusted profit before tax to £1.9 million (H1 25: £1.1 million). Adjusted earnings per share increased by 88% to 1.5p (H1 25: 0.8p). These adjusted figures are before share-based expenses or credits, foreign exchange losses, non-recurring items and the impairment of intangibles. Statutory profit before tax increased to £1.8 million, a rise of 260% (H1: 2025: £0.5 million), and statutory earning per share was up by 275% to 1.5p (H1 2025: 0.4p).

*It should be noted that total new orders figure stated includes only one year of any multi-year SLA contracts signed.

Cash flows and balance sheet

The Group continued to generate strong operating cash flow, with cash generated from operating activities of £1.7 million in H1 2026 (H1 2025: £1.9 million). Net cash from operating activities after interest, tax and non-recurring items, rose to £1.5 million (H1 2025: £1.0 million), helped by the absence of the restructuring costs incurred in H1 2025. On a like-for-like basis, excluding non-recurring items in both periods, net cash from operating activities was lower at £1.5 million (H1 2025: £1.6 million), reflecting the timing of project receivables at the half-way point. Cash and cash equivalents increased significantly year-on-year to stand at £2.2 million at the end of the first-half (30 June 2025: £0.6 million).

These strong cash flows enabled Pebble to repay £0.5 million of long-term debt in the period, taking bank debt down to £3.1 million at 30 June 2026 (H1 25: £4.1 million).

As a result of the Group's strong cash generation, net debt excluding IFRS 16 leases reduced by 75% to £0.8 million at the close of the first-half (30 June 2025: net debt of £3.4 million). Including IFRS 16 leases of £0.1m, net debt was down by 76% to £0.9 million at 30 June 2026 (30 June 2025: net debt of £3.6 million, including IFRS 16 leases of £0.2m).

Pebble remains firmly on track to move to a net cash position by the end of the of the current financial year.

The table below summarises the cash flows in the first half of 2026 and 2025.

Figures may not sum precisely due to rounding to the nearest £0.1 million.

Operational performance

We signed four new customers in the first half, all of which are Tier 1 operators. As is typical, they were secured via our third-party network. Two of our new customer signings were with streaming companies, the first, with a company based in the US, which is moving into live sports broadcasting and therefore has a need for our playout automation platform. The second is with a streaming company based in Romania, which is also moving into broadcasting live events and wishes to incorporate advertising into its output. It is adopting our technology to manage six broadcast channels paired simultaneously with six backup channels for high availability and disaster recovery. Our other two new customer signings were with traditional broadcasters; a Tier 1 media network based in Singapore that is a very large content creator, while the other new signing is a large Australian broadcaster that focuses on live sports in particular. These customers will be important references for us in the Asia-Pacific region, which we believe offers growth opportunities and where we are currently underrepresented.

Another major new contract win in the period was secured with a long-standing customer that is one of the largest media organisations in the Middle East. The new contract is for an upgrade project, where we are replacing a predecessor Pebble system with our next-generation platform, designed for highly complex, multi-channel environments. The adoption of our latest Enterprise-grade platform will provide this customer with further operational flexibility and scalability and help to underpin its future broadcasting growth plans. Given the importance of the project, the contract was won after a thorough tender process.

We successfully completed the delivery of three important projects in the period. We finished the installation of a complex automation system involving graphics and pipeline for a large, North American sports broadcaster. We went live with a major upgrade from an old Pebble automation system to our latest version for an existing private broadcaster customer operating in Dubai, and we also successfully completed an installation for a specialist sporting network in Europe.

We continue to invest in the development of our existing products, enhancing certain features and improving performance. We are also continuing to develop our AI integration vision, following our initial presentation in April 2026 at the National Association of Broadcasters (NAB) Show in Las Vegas.

We added additional resource to our teams, including project delivery and R&D, which will support ongoing growth.

Capital reduction and Dividend

As stated in the Company's 2025 Annual Report, the accumulation of historic losses on Pebble's retained profit and loss account within total equity prohibited the Company from making distributions to shareholders. In the same Report, the Board also stated that it believed it was now appropriate to seek shareholder approval to address this, given the Company's improving financial position. Accordingly, on 8 June 2026, a Circular proposing a capital reduction was posted to shareholders. Close to 100% of the shareholders that subsequently voted were in favour of the associated special resolution. Since then, a Court Hearing has considered and confirmed the capital reduction and the Court Order has been registered, with the capital reduction becoming effective on 29 July 2026. As a result of this process, the Company's distributable reserves have increased by a total of £10,095,102. Please see further details in Note 9 of the half-year report.

With distributable reserves now available, the Board is considering its options, taking into account Pebble's financial position and growth opportunities. It expects to update shareholders on its broader capital allocation policy, including the Company's dividend policy, in the new financial year.

Summary and prospects

The Company has performed well and the business is delivering increasing recurring revenue as well as strong cash flows. We remain on track to achieve a key objective of moving into a net cash position by the end of the current financial year, with the balance sheet anticipated to continue to strengthen thereafter.

Trading since June has been in line with management expectations. Looking ahead over the remainder of the financial year, Pebble looks very well-positioned to meet our forecasts. The order book is strong, helping to underpin revenue visibility, and project execution is progressing well. In addition, there are encouraging new sales prospects in our core broadcast marketplace and with streaming companies that are seeking to incorporate live sports/events and/or advertising into their output. We therefore view prospects for the current financial year and beyond with confidence.

Tom Crawford

Non-executive Chairman

CONSOLIDATED INCOME STATEMENT

for the half year ended 30 June 2026

Earnings per share attributable to the owners of the parent during the period

Other comprehensive income - items that may be reclassified subsequently to profit or loss:

NOTES TO THE HALF-YEAR REPORT

for the six months ended 30 June 2026

GENERAL INFORMATION

The Pebble Beach Systems Group is a leading global software business specialising in playout automation and integrated channel solutions for the broadcast and streaming markets.

The Company is a public limited company and is quoted on the Alternative Investment Market (AIM) of the London Stock Exchange. The Company is incorporated and domiciled in the UK, with registered number of 04082188. The address of its registered office is Unit 1, First Quarter, Blenheim Road, Epsom, Surrey, KT19 9QN.

This half-year results announcement was approved by the Board on 8 September 2026.

BASIS OF PREPARATION

The financial information for the period ended 30 June 2026 set out in this half-year report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2025 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified.

The half-year financial information has been prepared using the same accounting policies and estimation techniques as will be adopted in the Group financial statements for the year ending 31 December 2026. The Group financial statements for the year ended 31 December 2025 were prepared under UK-adopted international accounting standards. These interim financial statements have been prepared on a consistent basis and format. The Group has not applied IAS 34 'Interim Financial Reporting', which is not mandatory for AIM companies, in the preparation of these interim financial statements.

GOING CONCERN

The directors are required to assess the Company's and the Group's ability to continue to trade as a going concern.

The Directors, having made suitable enquiries and analysis of the accounts, consider that the Group has adequate resources to continue in business for the foreseeable future and therefore continue to adopt the going concern basis in preparing the interim financial statements. In making this assessment, which covers a minimum period of twelve months from approval of this half-year report, the Directors have considered the Group's trading forecast, cash flow forecasts, available headroom and projected financial covenants on the banking facility, the levels of opportunities in the pipeline and recurring support revenue.

We maintain a good relationship with our bank. The current loan agreement secures the facility until 28 April 2028 with banking covenants and a repayment schedule in place. The directors are confident that any loan extensions required post April 2028 would be granted given the historic track record.

We have a strong order book and pipeline which underpin our third and fourth quarter revenue as well as H1 2027.

Principal risks and uncertainties

The principal risks and uncertainties facing the Group remain consistent with the principal risks and uncertainties reported in the Group's 31 December 2025 Annual Report.

SEGMENTAL REPORTING

The Group's internal organisational and management structure and its system of internal financial reporting to the Board of Directors comprise of Pebble Beach Systems Limited and Group. The chief operating decision-maker has been identified as the Executive.

The Board reviews the Group's internal financial reporting in order to assess performance and allocate resources. Management have therefore determined that the operating segments for the Group will be based on these reports.

The Pebble Beach Systems Limited business is responsible for the sales and marketing of all Group software products and services.

The table below shows the analysis of Group external revenue and operating profit or loss by business segment.

Geographic external revenue analysis

The revenue analysis in the table below is based on the geographical location of the customer of the business.

Net assets/(liabilities)

The table below summarises the net liabilities of the Group by division. Balance sheet reporting is disclosed by the divisional assets and liabilities of the Group as this is consistent with the presentation of internal information provided to the Executive Management Board and the Board of Directors.

OPERATING PROFIT OR LOSS

The following items have been included in arriving at the operating profit or loss for the business:

The following items are excluded from management's assessment of profit or loss because by their nature they could distort the annual trend in the Group's earnings. These are excluded to reflect performance in a consistent manner and are in line with how the business is managed and measured on a day-to-day basis:

EARNINGS PER ORDINARY SHARE

For diluted earnings per share the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The dilutive shares are those share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year. The average market value of the Company's shares for the purpose of calculating the dilutive effect of share options was based on quoted market prices for the year during which the options were outstanding.

6 months to 30 June 2026 (Unaudited)

Adjusted earnings

The directors believe that adjusted EBITDA, adjusted earnings and adjusted earnings per share provide additional useful information on underlying trends to shareholders. These measures are used by management for internal performance analysis and incentive compensation arrangements. The term "adjusted" is not a defined term used under IFRS and may not therefore be comparable with similarly titled profit measurements reported by other companies. The principal adjustments made are in respect of the amortisation of intangibles, share based payment expense, non-recurring items and exchange gains or losses charged to the income statement and their related tax effects.

The reconciliation between reported and underlying earnings and basic earnings per share is shown below:

The amortisation of development costs is included in research and development expenses in the Consolidated Group Income Statement. Within capitalised development costs there are £5.5 million (6 months to June 2025: £9.1 million) of fully written down assets that are still in use.

POST BALANCE SHEET EVENT

On 29 July 2026, the High Court made an order confirming: (i) the cancellation of the amount standing to the credit of the Company's share premium account, totalling £6,946,039; (ii) the cancellation of the Company's capital redemption reserve, totalling £617,000; and (iii) a reduction of capital by way of the cancellation of paid-up share capital to the extent of 2 pence on each issued ordinary share of 2.5 pence, thereby reducing the nominal value of each ordinary share to 0.5 pence and releasing £2,532,063. The amounts arising from (i), (ii) and (iii) were transferred to retained earnings, increasing the Company's distributable reserves by a total of £10,095,102.

CASH FLOW GENERATED FROM OPERATING ACTIVITIES

Reconciliation of profit or loss before taxation to net cash flows from operating activities.

NET FUNDS

Reconciliation of change in cash and cash equivalents to movement in net debt (including IFRS 16 leases):