27th Jan 2005 07:55
Pace Micro Technology PLC27 January 2005 27.01.05 Pace Settlement with FSA Pace Micro Technology plc ("the Company") announces that it has reached asettlement with the Financial Services Authority ("FSA") without admitting theFSA's conclusions. Accordingly, the Company has withdrawn its reference to theFinancial Services and Markets Tribunal. The Company has decided that in view of the significant additional costs, bothin financial terms and in management time, it would not be in the best interestsof the Company or its shareholders to continue to pursue its reference inrelation to these matters (which have been ongoing for nearly 3 years),especially as the Company has been advised that its costs would almost certainlynot be recoverable from the FSA even if its appeal to the Tribunal were to befully successful. The FSA has found that Pace did not act deliberately or recklessly but hasdetermined that two contraventions of Listing Rules occurred. The FSAannouncement issued today might be read as suggesting that the change in theCompany's expectation as to its financial performance, which gave rise to theannouncement on the 5th March 2002, was known to the Company on the 8th January2002; this is incorrect. The FSA determinations relate to two separate issues: in its interim resultsannouncement of 8 January 2002, Pace should have disclosed the withdrawal ofdebtor insurance cover in respect of its future contracted deliveries to one ofits customers, NTL, even though re-instatement of such insurance cover was thesubject of continuing negotiations; and on 4 February 2002 Pace should haveannounced a reduction in forecast revenues for its financial year ending 1 June2002, notwithstanding that its forecast earnings at that time were still in linewith market expectations. Pace has agreed to pay a penalty of £450,000 in relation to the FSAdeterminations. In its financial year ending 29 May 2004, Pace made a provisionof £1.5 million for costs in respect of these matters. The penalty, togetherwith legal costs incurred net of expected insurance recoveries, will beaccommodated within this provision. Enquiries: Citigate Dewe RogersonGinny Pulbrook / Chris Barrie020 7638 9571 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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