Shares leap after Pace performs ahead of expectations

SHARES in set-top box maker and pay TV and broadband technology provider Pace leapt 44p last night following the release of strong results for 2013.

The Saltaire business, which reported pre-tax profit of £78m, up from £48m in 2012 while revenue increased by 2.7% to £1.47bn for the year to December 2013, saw its shares close at 447.6p on the London Stock Exchange.

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, 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.

Chief executive Mike Pulli 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.”

“We are confident about our trajectory and are focused on making further progress in 2014 and beyond,” he added.

Pace increased its dividend by 22% in 2013 to 3.3p a share.