Company is still setting the Pace (From Bradford Telegraph and Argus)

Saltaire digital technology firm remains on course for another successful year

9:00am Friday 29th October 2010 in Business By Chris Holland

Bosses at digital technology group Pace are confident the Saltaire-based business will maintain its strong record of success for the rest of this year.

Its performance in the four months since June matched that of the first half-year, when pre-tax profits rose by nearly half to £45.4m. This followed a record year in 2009 when profits soared by more than 400 per cent to £70m.

Executives are now integrating the US-based 2Wire operation. The £308m deal to buy the US broadband systems provider was completed earlier this month after getting the backing of Pace shareholders.

Although the transaction will result in an exceptional charge on the company’s 2010 accounts, it is seen as a crucial move as it widens the scope of the company’s operations after becoming the world’s number one set top box producer.

The 2Wire acquisition has broadened Pace’s US customer base and extended its market opportunities beyond cable and satellite to include the ‘telco’ market.

Trading at 2Wire in the second half of the financial year to date had been in line with expectations.

In an interim management statement Pace said it had continued to deliver on its strategy within the pay TV market and had performed well.

Revenues and volume deliveries had gone to plan to meet growing demand for high definition equipment from pay TV operators. as well as new areas such as 3D, on demand content and inter-connected multi-room TV.

At the same time Pace had continued to successfully manage in a market with a continuing shortage of components Chief executive Neil Gaydon said: “Our consistent delivery against a clear strategy has enabled Pace to deliver excellent operational performance, building further on our market leadership position. Pace remains on track to deliver a second half performance as strong as the first half.

“With the acquisition of 2Wire we have not only extended our customer base, but further widened our technology capability.

“Our immediate focus is on the integration of 2Wire into the Pace group.”