Pace profits beat expectations, appoints new finance boss

Pace shares got a boost on Tuesday after the TV set-top box maker unveiled its new finance chief and said profit had beaten expectations for the three and a half months since the start of July.

The group, which supplies its technology to pay-TV and broadband service providers, said trading during the period had been positive and that it had good momentum going into the fourth quarter.

Underlying demand for its products and services continued to be strong, helping to drive revenue, while gross margins for the period were ahead of expectations thanks to an improved revenue mix and procurement savings from ongoing supply chain improvements.

The company also benefitted from lower-than-expected operating costs as a result of ongoing efficiency initiatives.

Pace said revenue for 2014 overall is expected to be between $2.6bn and $2.65bn (2013: $2.47bn), "reflecting a short-term shift in phasing from this year into next year", while the operating margin is now expected to be greater than 9.0% (2013: 7.8%), which is equivalent to greater than $235m adjusted earnings before interest, tax and amortisation (2013: $194m).

Chief executive Mike Pulli said: "We continue to make good progress and have delivered another period of strong profitability and cash generation.

"In the period, Pace has achieved a record number of major product launches across the globe, regaining leadership with a number of key customers and reinforcing Pace as a leader in innovation and delivery for the pay-TV and broadband industries.

"The company continues to make further progress on its self-help initiatives with improvements in the efficiency of its supply chain and a reduction in operating costs. Notwithstanding the benefits realised over the last three years, there remains significant opportunity for further improvement."

He added that the group had "a good line of sight" to a record fourth quarter and said it remained firmly focused on closing out the year and maintaining this momentum into 2015.

Shuttleworth named as new finance boss

The company also announced that it has appointed Mark Shuttleworth as its new chief financial officer and said he will take up the role on 12 January.

Mark served as the finance chief of Emirates Integrated Telecommunication Company, having taken the role in 2005.

He was responsible for managing the financial and business investment strategy of the start-up operator, led its $660m initial public offering in Dubai and built the business to a market capitalisation of $8bn and revenues of $3bn.

Pulli said: "He is a highly experienced and established finance leader with an entrepreneurial spirit and track record of delivering great results.

"This background combined with a wealth of international experience working for both service providers and technology vendors will enable Mark to play a crucial role in Pace's continued progress."