Record results for set top box firm

Pace chief executive Neil Gaydon “extremely pleased” with firm's performance

Set-top box maker Pace hailed a record first half performance as interim profits almost trebled and demand for their home entertainment products surged.

West Yorkshire-based Pace said pre-tax profits were £31 million in the six months to June 30, up from £10.5 million a year ago.

The firm, which makes products for digital television customers including BSkyB in the UK and Time Warner Cable in the US, said revenue for the period increased to £526.5 million, compared with £231.1 million in 2008.

Pace, which has already announced that trading will be well ahead of previous expectations, said the comparative half-year figures include a 70-day contribution from the acquisition of the set-top box business from Royal Philips Electronics, now Pace France.

The firm said volume growth was particularly strong, with increased demand pushing product sales to 8.5 million units, from 2.8 million last year.

Pace chief executive Neil Gaydon said the firm was "extremely pleased" with the performance so far.

He said: "We signalled significant upgrades to management's expectations for the full year and with strong half year results we are firmly on track.

"Pace is taking full advantage of the growing global demand for our products and technologies in digital payTV markets, which, when coupled with our scale and excellent operational execution is enabling us to grow operating margins."

He added: "We expect our strong performance to continue during the second half, and with good order visibility we are confident in our ability to deliver against management's expectations for the full year."

Pace said average selling prices for its products would increase in the second half of 2009 as a result of the shift in product mix.