Pace PLC 2014 Trading Update (9908B)
January 13 2015 - 2:00AM
UK Regulatory
TIDMPIC
RNS Number : 9908B
Pace PLC
13 January 2015
Pace plc: 2014 Trading Update
Profitability for FY2014 expected to be ahead of guidance:
operating margin not less than 9.2%, revenue growth of 6% to
$2,610m, free cash flow in excess of $200m.
Saltaire, UK, 13 January 2015: Pace plc ("the Company",
"Group"), a leading global developer of technologies and products
for PayTV and broadband service providers, today announces the
following unaudited update for the financial year ended 31 December
2014 ahead of preliminary results to be announced on 3 March
2015.
The Group performed well in 2014; full year profitability will
be ahead of the Board's previous guidance:
-- Record Q4 revenue has resulted in a strong finish to the
year. Full year revenue expected to be up 6% to $2,610m (2013:
$2,469.2m).
-- Adjusted EBITA([1]) of at least $240m, 24% ahead of 2013 (2013: $193.6m).
-- Underlying operating margin expected to be not less than
9.2%, 1.4ppts ahead of 2013 (2013: 7.8%).
-- Adjusted basic EPS([2]) expected to be at least 56c, 26% ahead of 2013 (2013: 44.3c).
-- Free cash flow([3]) in excess of $200m (2013: $209.0m).
-- Net debt of less than $95m as at 31 December 2014 (31
December 2013: $33m net cash). Since the completion of the
acquisition of Aurora Networks for a headline consideration of
$310m on 6 January 2014, net debt has reduced by more than $180m
(65%).
Commenting on today's announcement, Mike Pulli, CEO, said: "Pace
has performed very well in 2014 with a particularly strong second
half to the year. We have launched a record number of products
across the globe and continue to lead the market in both product
innovation and the service we deliver to our customers. Demand from
our customers has remained strong and we continue to win new
business. The Company has made further good progress in the
execution of our Strategic Plan and has achieved improved
profitability and strong cash generation for the third year in a
row.
The Aurora Networks acquisition has performed above expectations
and has enabled Pace to widen out into the network infrastructure
space and build deeper, more embedded relationships with our
customers. The Board are confident that, through Aurora, potential
further acquisitions and the ongoing delivery of our Strategic
Plan, Pace will further strengthen its position as a market leading
solutions provider for the PayTV and broadband industries.
We have good momentum and are confident of making further
progress in 2015 and beyond."
In Q4 2014, Pace has made further good progress on the execution
of its Strategic Plan:
Continue to transform core economics:
-- The Company's ongoing focus to improve efficiency and
effectiveness has delivered further sustainable overhead savings in
all areas of the business whilst continuing to materially invest in
growth opportunities.
Maintain PayTV hardware leadership:
-- Liberty Global is currently trialling the advanced Horizon
user experience based on Pace developed set-top boxes ("STBs") at
UPC Poland, the first RDK-based platform to be deployed by a
European cable operator.
-- Pace has been selected by long term customer, Net Brazil, a
leading cable operator in Brazil, to provide next generation high
definition STBs.
Widen out:
-- Foxtel, the leading subscription television provider in
Australia, have approved the iQ3 solution consisting of Pace
hardware and Pace Elements software for trial and will be launched
in early 2015.
The Group will be announcing its preliminary results for the
year ended 31 December 2014 on 3 March 2015.
-ends-
For further information please contact:
Charles Chichester Chris Mather
Pendomer Communications Pace plc
+44 (0) 203 6035 220 +44 (0) 1274 538 330
[1] Adjusted EBITA is operating profit before exceptional costs
and amortisation of other intangibles.
[2] Adjusted basic EPS is based on earnings before the post-tax
value of exceptional costs and amortisation of other
intangibles.
[3] Free cash flow is calculated as cash flow before proceeds
from issue of shares, dividends, acquisition cash flows and debt
repayment /draw down.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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