Building products day
The share prices of companies in the UK building materials sector have sold off significantly over recent months suggesting the market has little confidence in the short-term outlook. However, results and updates covered here reflect a period of strong growth. Should the doomsayers prove to be wrong there could be some terrific bargains to be had, as our commentary here highlights.
Pebble Group: cash flow puzzle The Pebble Group (AIM: PEBB), a leading provider of digital commerce, products and related services to the global promotional products industry, announced encouraging interim results. The Group operates in the large promotional products market, estimated to be worth $50bn with North America accounting for ~50% of the total industry. For the six months ending 30 June 2022 revenue rose 29% to £60.3m, while operating profit was 41% higher at £3.1m. Revenue was also 25% ahead of the first half in 2019, the last pre-COVID affected year. The cash flow takes a bit of understanding with…