Yorkshire-based set-top box maker, Pace, has reported record profits for the first half of the year following increased consumer demand for digital television technologies.
According to interim results, the company’s adjusted operating margin was up 6.5 per cent and adjusted profit before tax was at £34.3m compared with £11.2m for the same period last year.
The growing demand for set-top boxes led to a volume growth of 8.5 million units compared with 2.8 million units for the first half of 2008. Revenue for the period increased in line with management expectations to £526.5m compared with £231.1m in 2008.
In addition to growing demand, the company credited the strong results to improvements in project delivery within the supply chain as well as benefits achieved through the integration of Pace France.
Nigel Gaydon, chief executive at Pace, said: ‘We are extremely pleased with our half-year results as the Pace Group continues to consistently deliver against its customer, technology and product strategies. We signalled significant upgrades to management’s expectations for the full year and with strong half-year results we are firmly on track.’
Gaydon added that the company will continue to take advantage of growing global demand for its products despite difficult market conditions. The group has predicted that its adjusted operating margin will increase to eight per cent in the medium term.
He said: ‘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.’