Pace to hit performance target thanks to World Cup
PACE, the Yorkshire-based TV set-top box maker, expects the forthcoming football World Cup to further boost its performance as the firm continues to perform in line with expectations.
The Saltaire-headquartered business saw pre-tax profits leap 405% to £69.9m in the year to December 31, as previously reported.
Mike McTighe, chairman of Pace, told shareholders at the company’s Annual General Meeting that the company “continues to deliver against management’s plan”.
“We entered 2010 in a strong operating and financial position with our payTV markets continuing to be positive and with good demand for the group’s products,” Mr McTighe will report.
He said Pace expected “solid volume growth” for the full year which would lead to “mid single digit revenue growth”.
“Gross margins are expected to increase, with a focus on operating cost and efficiency generating further improvements in operating margin,” he will report.
“We will also continue tight management of the supply chain as we manage a sector-wide risk of component shortages.”
Mr McTighe said the company believed the World Cup, which will be broadcast in HD and 3D formats, will result in Pace’s first half performance being ahead of the second half as operators ship goods ahead of the major sporting event.
“Overall the group continues to look forward to another successful year and has maintained a strong balance sheet and robust financial position,” he will add.
Pace has continued to develop its strategy to be at “the heart of home entertainment convergence for the payTV industry, the next evolutionary shift in our market”. he said.
Pace said it established leadership in the market last year following the launch of its Home Content Sharing product in the US.
And the acquisition of Paris-based IP and cable gateways specialist Bewan has helped the company take “another step towards our convergence goal”.
Pace also has won a number of customer contracts, including a new Microsoft Mediaroom-based set-top box and second generation set-top box for BT Vision in the UK and a new range of Freeview HD products in the UK.
