Strong second half powers Pace forward

PACE today said it enjoyed a strong second half of the year with full year results expected to come in ahead of previous estimates.

The Saltaire-based home entertainment technology business, which has undergone dramatic restructuring of its operation in recent years, said in a trading update that it finished 2012 strongly with full year revenues expected to be $2.4bn (£1.5bn), up 4%, while it cut net debt by 47% last year to $173m (£108m).

Pace, which develops and supplies technology and products for pay TV and broadband service providers, said the improvement in performance was largely driven by demand for new media server products in North America.

The group, which announces its full year results on March 5, said its underlying operating margin is expected to be 7.3% with earnings coming in 11% higher at $157m (£98m).

It said it made good progress last year in implementing its strategic plan.

Chief executive Mike Pulli, said: “Pace has performed impressively in 2012 with a particularly strong second half to the year. We have made good headway on executing our strategy and Pace is becoming a more profitable, cash generative company.

“We have momentum and a sustainable platform to build from, and we expect to make further progress in 2013 and beyond.”