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 EBITA1 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 EPS2 expected to be at least 56c, 26% ahead of 2013 (2013: 44.3c).
Free cash flow3 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.
