13th Jan 2015 07:25
LONDON (Alliance News) - Pace PLC Tuesday said it expects its 2014 profits to be above its previous guidance, after revenue growth was particularly strong in the second half of the year thanks partly to new product launches and its acquisition of networks infrastructure company Aurora Networks.
The company also said it is confident of making "further progress" in 2015 and beyond.
In a trading update, the maker of products like set-top boxes for pay-TV and broadband providers said it expects earnings before interest, tax, depreciation and amortisation, excluding exceptional costs and amortisation of intangibles, to be at least USD240 million, up 24% from USD193.6 million in 2013. It expects its underlying operating margin to be not less than 9.2%, up from 7.8% in 2013.
The company said it had recorded "record" revenue in the fourth quarter of 2014, and expects revenue for the year as a whole to be USD2.61 billion, up 6% from USD2.47 billion in 2013. Its adjusted basic earnings per share are expected to be at least 56 cents, up 26% from 44.3 cents in 2013.
"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," Chief Executive Mike Pulli said.
"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," he added.
Pace also said it expects to report 2014 free cash flow of more than USD200 million, compared with the USD209.0 million it reported in 2013, while net debt as of December 31 will be below USD95 million, compared with USD33 million net cash at the end of 2013. It said it had cut debt by more than USD180 million, or 65%, since buying Aurora Networks for USD310 million in January 2014.
By Steve McGrath; [email protected]; @stevemcgrath1
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