Pace “on track” to meet revised guidance

UK set-top giant Pace says it is now on track to meet its revised 2011 guidance. Pace said its inventory management had now been normalized, with the majority of the financial impact absorbed in its first half results. Following its earlier profit warning, the group said it was now on track to make full-year profits of between US$150-170 million (€104-118 million).

The impact of the Japanese earthquake and tsunami on its supply of components had largely been mitigated, it said, although a small number of components remained at risk.

Pace has also resized its networks business in order to make it profitable. The company also said it was conducting a strategic review, scheduled to conclude around the time of its third-quarter results.

The company’s revenues for the six months to June 30 were up 21% year-on-year at US$1.187 billion, while profit before interest, tax and amortisation was down from US$73.3 million to US$68.4 million.

Pace is now reporting in dollars for the first time, and CEO Neil Gaydon said that 46% of sales were now in North America, compared with 19% in Europe.

Sales in the US were down 6.7%, which Gaydon said was “in line with expectations due to a change in customer requirements”, following strong DVR orders in the first half of 2010. European revenues were also down, which Gaydon said was due to the company’s exit from the retail market and slower sales in Italy. However, sales in emerging markets – especially Latin America – were up.