Pace shares spike as its performance picks up speed

SHARES in British television set-top box maker Pace shot up 8.7 per cent to 113.7p yesterday as the company revealed it was making good progress tackling the supply problems that prompted its profit warning in May.

The company, which named City heavyweight Allan Leighton (pictured) as chairman last month, had revised its full-year profit guidance to between $150m and $170m (£91.5m and £103.7m) because of supply chain problems caused by the Japanese tsunami and poor performance in Europe.

But yesterday Pace reported a half-year pre-tax profit $29.4m on revenues of $1,187.1m and said it was likely to meet revised full-year profit forecasts.

“Progress is being made on each of the issues identified in May, and we continue to address those issues not fully resolved,” said chief executive Neil Gaydon.

“Acquisition-related synergies have been achieved ahead of plan. This period has seen continued free cash flow generation, leading to a reduced net debt position of $293.2m.”