Pace performs above expectations
SET-top box maker and pay TV and broadband technology provider Pace has today announced a strong performance and says it is now focused on making further progress this year and beyond.
In its results for the year ended December 31 2013, Saltaire-based Pace reported adjusted EBITA up 22.5% to $193.6m; an operating margin of 7.8% against 6.6% in 2012. Pre-tax profits increased to $130.8m (2012: $80.1m), an increase of $50.7m on 2012, and revenue increased by 2.7% to $2,469.2m.
Pace, which completed the acquisition of £134m turnover developer and manufacturer of advanced optical transport and access network products for broadband networks, Aurora, in January, today said that “considerable” progress has been made in delivering on its strategy in 2013 and there remains further opportunity in 2014 to build on this success to develop and improve the performance of the company.
The board said it is confident that the group (including Aurora) will make further progress in 2014. Pace expects revenues for 2014 to be around $2.7bn and said
strong cash flow will continue. Pace expects to generate in excess of $185m of free cash flow.
Mike Pulli, chief executive officer, said: “I am pleased to report that Pace has performed above expectations in 2013, by delivering increased operating profits through both top-line growth and operational efficiency, with a sustainable high level of cash generation. We have made good headway on executing our strategy and there remains significant opportunity for further improvement.
“Pace continues to lead the market in innovation with great products and services, demand from our customers has remained strong and we continue to win new business.
“I am excited about the acquisition of Aurora Networks, which will enable Pace to widen out into network infrastructure and build deeper, more embedded relationships with our customers, strengthening Pace’s position as a market leading solutions provider for the PayTV and broadband industries. The teams have hit the ground running and made great progress with the integration of Aurora. I am confident that we will complete the integration by the end of Q2 2014 and deliver the expected synergy benefits.
“The strong performance in 2013 and the momentum of the business going into 2014 give the board confidence to increase the final dividend by 20%. The board is recommending a final dividend of 3.66c per share, giving a full year dividend of 5.49c per share, a 22% increase on 2012.
“We are confident about our trajectory and are focused on making further progress in 2014 and beyond”.
Pace today said 2013 has been a year of further recovery and expansion for the business.
It said: “We have delivered a strong set of financial results, made good progress on our Strategic Plan, and created a platform for continued improvement in operating performance over the next few years.”
