Picture coming into focus at Pace
Set-top box technology firm Pace said its business is continuing to feel the impact of the hard disk drive supply issues which contributed to a halving of profits in 2011 but otherwise has made an encouraging start to 2012.
Set-top box technology firm Pace said its business is continuing to feel the impact of the hard disk drive supply issues which contributed to a halving of profits in 2011 but otherwise has made an encouraging start to 2012.
Pace was badly affected by the flooding in Thailand last year which restricted the supply of hard disk drives (HDDs), costing Pace around $36m, but it also owned up to inventory control issues of its own making, which the management says it is now addressing.
"The business is benefiting from a stronger operational focus and this is delivering tangible benefits in procurement, operating efficiency and costs," said Pace's Chairman, Allan Leighton.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"We remain confident that revenue in 2012 will be broadly flat, prior to the impact of HDD supply issues, and that a c.7% underlying EBITA [earnings before interest, tax and amortisation] margin will be achieved," Leighton said.
Revenue in the first three months of 2012 was in line with management expectations.
JH
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published