A bounce back from first-half supply problems, and helped by a solid US performance, allowed set-top-box maker Pace (PIC) to deliver solid profit growth during 2012. Indeed, underlying cash profit rose 11.8 per cent in the year to $158.1m (£105m) and the cash profit margin improved from 6.1 per cent to 6.6 per cent.
The second half of the year saw the company steady the ship after flooding in Thailand had badly disrupted the supply of hard disk drives - that knocked $23.1m off profits back at the half-year stage. But a focus on efficiencies and cost savings meant that full-year profit there grew strongly for the first time in three years. Moreover, working capital was hacked back by 39 per cent through negotiating better terms with suppliers, improved inventory control and better cash collection - all of which allowed Pace's free cash flow to surge to $182.7m from $8.2m. That led to net debt falling 49.2 per cent in the year - chief executive Mike Pulli says the objective is to have a net cash position by the end-2013.
Broker Canaccord Genuity has left forecast unchanged and expects pre-tax profit of $176m for 2013, giving EPS of 41.1¢ (35.1¢ in 2012).
PACE (PIC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 228p | MARKET VALUE: | £710m | |
| TOUCH: | 227-228p | 12-MONTH HIGH: | 242p | LOW: 68p |
| DIVIDEND YIELD: | 1.3% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 148¢* | NET DEBT: | 35% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 0.75 | 13.8 | 4.00 | 0.60 |
| 2009 | 1.13 | 69.9 | 17.7 | 1.50 |
| ($bn) | ($m) | (¢) | (¢) | |
| 2010 | 2.06 | 110 | 26.4 | 3.37 |
| 2011 | 2.31 | 54.7 | 13.2 | 3.75 |
| 2012 | 2.40 | 80.1 | 19.4 | 4.50 |
| % change | +4 | +46 | +47 | +20 |
Ex-div: 5 Jun Payment: 5 Jul *Includes intangible assets of $504.1m, or 162¢ a share £1=$1.51 | ||||
