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.

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.

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"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