9th Jan 2014 07:00
Pace plc: 2013 Trading Update
FY2013 expected to be ahead of guidance: operating margin not less than 7.7%, revenue growth of 2.4% to $2,460m, free cash flow in excess of $200m
Saltaire, UK, 9 January 2014: Pace plc, 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 2013 ahead of preliminary results to be announced on 4 March 2014.
The Group performed well in 2013; and full year results will be ahead of the Board's previous guidance:
· Full year revenues expected to be up 2.4% to $2,460m (2012: $2,403.4m).
· Adjusted EBITA1 of at least $190m, 20% ahead of 2012 (2012: $158.1m).
· Underlying operating margin expected to be not less than 7.7%, at least 1.1ppts ahead of 2012 (2012: 6.6%).
· Free cash flow2 in excess of $200m (2012: $182.7m).
· Debt repaid in full prior to the end of the financial year3 (zero debt), cash position in excess of $30m as at 31 December 2013 (31 December 2012: $163.3m net debt).
The Group has made good progress throughout the year in the execution of our Strategic Plan:
· Leadership in PayTV hardware:Pace maintained market leadership positions in Set-top Boxes, Media Servers and Gateways whilst making further progress into previously under-penetrated markets such as cable in Europe and IPTV.
· Widen out into software, services and integrated solutions: Pace built on the momentum of 2012 with a number of key wins and a strong focus on product and customer project delivery for major launches and deployments in 2014.
· Transform core economics: Continued focus on efficiency has delivered further sustainable overhead savings and the transformation and rationalisation of our supply chain was completed, delivering significant benefits in 2013 and beyond.
In addition, the acquisition of Aurora Networks, which closed on 6 January 2014, is an important step in the evolution of the Company and enhances Pace's strategy to widen out and build a broader platform from which to drive revenue.
Commenting on today's announcement, Mike Pulli, CEO, said: "Pace has performed above expectations in 2013. We continue to lead the market in innovation with great products and services, 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 Pace continues to become a more profitable and cash generative company.
I am excited about the acquisition of Aurora Networks, which will enable Pace to widen out into network infrastructure and build deeper, more embedded relationships with our customers. This will strengthen Pace's position as a market leading solutions provider for the PayTV and broadband industries.
We are confident about our trajectory and are focused on making further progress in 2014."
The Group will be announcing its preliminary results for the year ended 31 December 2013 on 4 March 2014.
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For further information please contact:
Charles Chichester / James Fearnley Roddy Murray / Chris Mather
RLM Finsbury Pace plc
+44 (0) 207 251 3801 +44 (0) 1274 538 330
1 Adjusted EBITA is operating profit before exceptional costs and amortisation of other intangibles.
2 Free cash flow is calculated as cash flow before proceeds from issue of shares, dividends, acquisition cash flows and debt repayment /draw down.
3 A new 5 year $150m revolving credit facility plus a 5 year term loan for $310m to finance the acquisition of Aurora Networks Inc was put in place on 6th January 2014.
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PIC.L