Pace to smash full year guidance

TV decoder maker Pace said full year revenue is expected to be ahead of previous forecasts and four per cent higher than last year.

The West Yorkshire based firm said it expects revenue to be around $2.4bn after a strong second half. The group said it achieved record fourth quarter revenue, mostly driven by demand for next generation Media Server products in North America.

Underlying operating margin expected to be 7.3%, after adjusting for the adverse impact of supply disruption with EBITA or earnings before interest, tax and amortisation of at least $157m, 11% higher than 2011.

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Cash generation throughout the second half was strong, with free cash flow for the year expected to be not less than $175m compared to $8.2m in 2011.

Closing net debt is expected to be no greater than $170m, down 47% from the previous year.

Pace added that the transformation of its supply chain is underway and is expected to deliver tangible benefits in 2013 and beyond.

CJ