Pace boxes clever for the future
COMPETITION between pay TV operators, new technology and and the switch off of the old analogue TV system will “stimulate” future growth for set-top box maker Pace Micro Technology.
The Saltaire-based group, which will one of the world leaders in its market after it completes a £68m deal to buy the set-top box business of European electronics giant Philips, said today that it enjoyed an “exceptional performance” last year.
The group, which has changed its accounting year-end to match the calendar year, saw pre-tax profits of £15.4m on turnover of £249.9m in the seven months to December 31.
In the year to June 2 it made profits of £4.9m on turnover of £386.5m and had made a loss of more than £15m the previous year.
Earnings per share were 6.1p. In the year to June 2 they were 3p.
Chief executive Neil Gaydon said that gross margin improved to 20.3% as the group delivered 2.4m set-top boxes to its customers across the world at an average price of £102, an increase of £2.
Pace makes 58% of its sales in the North American market, which is the world's largest, and the rest in Europe and Australasia.
Mr Gaydon said that during the period the group strengthened its position in its existing markets and increased its market share in growing areas such as high definition (HD) and personal video recorders (PVR) like Sky+.
“We continue to focus on delivering profitable products on time, closely managing our business and investing in the right key technologies for the future,” said Mr Gaydon.
Of the Philips acquisition, unveiled in December, he said: “This deal would make Pace the world leading set-top box technology companywith an unmatched global customer portfolio.”
The Saltaire company has bought the Dutch group's arm which supplies set-top boxes and satellite, cable, terrestrial and internet television components.
The deal will create a business which has global annual sales of 8.5 million boxes.
Pace will pay for the acquisition with 70 million of its shares giving Philips a 23% stake making it Pace's largest shareholder, ahead of founder David Hood.
The group, which employs 614 staff, was set up in 1982 and floated in 1996.
