Strong first half for profitable Pace
SET-top box maker and pay TV and broadband technology provider Pace has seen profits rise as it reports a successful first half of the year.
In its interim results for the six months to the end of June, the Saltaire-based business said momentum was building as pre-tax profits climbed to $72m compared to $68.6m in the same period last year, adjusted EBITA was up 9.9% to $106.3m, gross profit jumped up by 5.4% to $245.8m and the interim dividend increased by 23%.
Despite revenue dropping by 13.6% to $1,138.9m, the group said this was in-line with management expectations and says it has good visibility and anticipates strong revenue growth in the second half of the year driven by new product launches across a number of markets, regaining leadership with several key customers plus increased demand for network products.
Therefore, Pace said its anticipates that full year profits and cash flow for the group will be higher than previous guidance, with revenues for 2014 expected to be around $2.7bn (2013: $2.47bn).
Mike Pulli, chief executive officer, said: “I am pleased to report we have had a successful first half of the year and have made considerable progress. Pace is continuing to evolve into a more profitable, cash generative business with a broader spread of customers. As expected, revenue was lower than the comparable period, however, we have delivered strong profit and cash flow growth through the contribution of Aurora, a better mix of revenue, improving supply chain effectiveness and improving operating efficiency.
“H1 2014 has seen a period of intense development activity with a number of major new products being launched at the end of the half and early in the second half, supporting our expectation of strong revenue growth in H2 2014.
“Aurora Networks has been a great addition to the Pace Group. The integration has been successfully completed and the underlying demand for Aurora products is well ahead of our expectations with record levels of orders.
“The 23% increase in the interim dividend is in line with Pace’s progressive dividend policy and reflects both the solid cash flow performance as well as the board’s continued confidence in the outlook and future prospects for Pace.
“We continue to make good progress on executing our strategy; the integration of Aurora, key wins in all areas of our product and service portfolio across all of the regions that Pace operates in, and ongoing operational improvements give management confidence that we will maintain our momentum and make further progress in the second half of 2014 and beyond.”
Pace has also announced that CFO Roddy Murray has stepped down from the board and Belinda Ellis, group financial controller, will be acting CFO until further notice.
