Pace have fallen a lot over the last 6 months. The move to digital is near, do you think they can recover. Presently way off previous highs.

PIC breaking out.

WOW tight spread.

Back to summer 2009.

PIC PACE

Looks very cheap to me PIC.

Just look at the forward P/E to year ending 2013
and then compare it with the Historic P/E for
2011........ 22.14 V 9.01

DERD CHEAP and plenty more increase to come
here.

PEG for 2013 just 0.25.

INVESTMENT RATIOS
2011 (A) 2012 (E) 2013 (E)

EBITDA £110.68m £121.64m £138.36m
EBIT £56.17m £91.36m £104.96m
Dividend Yield 0.93% 1.03% 1.15%
Dividend Cover 4.86x 7.94x 9.65x
PER 22.14x 12.24x 9.01x
PEG -0.43f 0.15f 0.25f
Net Asset Value PS -42.27p 95.50p 120.97p

Hemscott Premium.

Time to dust this off again.

Preliminary Results

Adjusted EBITA up 11.8% to $158.1m, Free cash flow $182.7m, Dividend up 20.0% to 4.5c per share.

Financial highlights

· Revenues up 4.1% to $2,403.4m (2011: $2,309.3m).
· Adjusted EBITA(1) up 11.8% to $158.1m (2011: $141.4m) including the impact of Hard Disk Drive (HDD) supply disruption of $23.1m in H1 (2011: $8.9m).
· Adjusted EBITA margin 6.6% (2011: 6.1%), 7.3% before the impact of HDD supply disruption (2011: 6.4%).
· Profit after tax up 50.5% to $58.4m (2011: $38.8m).
· Basic EPS up 47.0% to 19.4c (2011: 13.2c) with Adjusted basic EPS(2) up 18.2% to 35.1c (2011: 29.7c).
· Proposed final dividend 3.06c per share, resulting in full year dividend of 4.50c per share, a 20.0% increase on 2011 (2011: 3.75c).
· Free cash flow(3) $182.7m (2011: $8.2m).
· Closing net debt(4) down 49.2% to $163.3m (2011: $321.7m).

Operating highlights

· New Executive Management team established in Q1 2012 with robust management processes and culture of accountability across the business.
· Significant progress made against the Strategic Plan laid out in November 2011:
o Transform core economics:
§ Focus on operating efficiency has delivered sustainable savings in the year.
§ Transformation of supply chain that will deliver tangible benefits in 2013 and beyond well underway.
§ Managed well through HDD supply disruption following major flooding in Thailand, containing the financial impact within H1.
o PayTV hardware leadership:
§ Reconfirmed as the market leader in PayTV hardware; global number one in Set-top boxes ("STBs")(5) and Residential Gateways(6).
§ Maintained position at the forefront of technological development with the launch and deployment of Media Server platforms at DirecTV and Comcast, and a number of Media Server wins at operators in Europe, Latam and Asia Pacific.
§ Continued demand for Gateway platforms; Pace recently announced the deployment of the Pace 5168 Triple-Play Gateway at MTS, the fourth largest Telco in Canada.
o Widen out into Software, Services and Integrated Solutions:
§ Achieved a number of key wins and deployments across all areas of our Software and Services offerings at customers such as BSkyB, Foxtel and Sky New Zealand, and have a strong pipeline into 2013.
§ Notable developments in H2 include:
· Telstra, Australia's leading telecommunications and information services company, has deployed the Pace ECO Service Management software suite. The ECO platform is currently supporting our customers to manage nearly 25 million devices across the world.
· The Latens software-based Conditional Access and Digital Rights Management (DRM) business made good headway, with a 68% growth in the number of subscribers the product is deployed to, on both Pace and other vendors' STB hardware.

2013 Outlook

Considerable progress has been made in delivering on our strategy in 2012 but there remains further opportunity in 2013 to develop and improve the performance of the Company.

The PayTV market remains resilient and demand for our products and services continues to be encouraging:
· Media Server upgrade cycle continues in North America and other markets.
· Increasing opportunities for software, services and integrated solutions.

Going into 2013, Pace has a clear plan and good line of sight to making further progress in the business:
· Revenues for 2013 expected to be broadly in line with 2012.
· Operating Margin for 2013 is expected to be c.7.5%.
· Strong cash flow will continue, and Pace expects to be in a positive cash position at the end of 2013.

Interim Management Statement

At its Annual General Meeting scheduled to take place today, Allan Leighton, Chairman, will say:

"I am pleased to report that Pace has made an encouraging start to the new financial year with strong revenue growth in the period, in line with our expectations. We expect revenue for H1 2013 will be ahead of H1 2012, driven largely by continuing demand for Media Server products in North America and the comparative half being impacted by Hard Disk Drive supply disruption.

Profitability is in line with our expectations and the robust cash flow generation has continued.

We continue to focus on the execution of our Strategic Plan and have made good headway in the period:

· Transform Core Economics: The transformation of our supply chain continues to progress well with the implementation of a single Product Lifecycle Management system and related engineering processes across the whole business. This will support the transition to two core Electronic Manufacturing Services (EMS) partners that will be completed later in the year.
· PayTV Hardware Leadership:
o Liberty Global, a leading international cable operator, has selected Pace to provide Media Server products to a number of their operations in Europe.
o Pace has been selected by Telefonica as the major supplier of High Definition Zapper and PVR devices for their IPTV operations in Latin America as part of their rollout of the Telefonica Global Service Platform. Initial deployments will take place in Brazil and Chile later in the year.
· Widen out into Software, Services and Integrated Solutions:
o The win rate and pipeline of new business remains strong across all areas of our software and services offerings and we have made good progress in the delivery of the landmark customer projects won in 2012.
o Our Latens business has deployed an integrated product combining Conditional Access (CA) and Digital Rights Management (DRM) for both Broadcast and Over-the-Top (OTT) services, the first deployment of its kind in the industry.

2013 Outlook
The Group has made a good start to the year and management remains confident of achieving the outlook stated on 5 March 2013:
· Revenues for 2013 expected to be broadly in line with 2012.
· Operating Margin for 2013 is expected to be c.7.5%.
· Strong cash flow will continue, and Pace expects to be in a positive cash position at the end of 2013."

The Group will be announcing its half year results for the period ending 30 June 2013 on 30 July 2013.
-ends-

Went long just after lunch, nicely in profit.

One heck of a tight spread.

Interims tomorrow.

Interim Results

Strong H1 trading performance: adjusted EBITA up 57.0% to $96.7m and free cash flow of $92.0m. Interim dividend increased 27.1% and full year profit guidance increased.

Financial highlights
· Revenues up 31.0% to $1,318.4m (H1 2012: $1,006.5m).
· Adjusted EBITA1 up 57.0% to $96.7m (H1 2012: $61.6m).
· Operating margin2 7.3% (H1 2012: 6.1%).
· Basic Earnings Per Share ("EPS") up 221.6% to 16.4c (H1 2012: 5.1c) with adjusted basic EPS3 up 72.7% to 22.1c (H1 2012: 12.8c).
· Interim dividend 1.83c per share, a 27.1% increase on H1 2012 (H1 2012: 1.44c).
· Free cash flow4 $92.0m (H1 2012: $94.6m).
· Closing net debt5 $68.2m (31 December 2012: $163.3m), a $95.1m (58.2%) reduction (H1 2012: reduction of $78.4m from 31 December 2011).

Operating highlights
· Significant further progress made against the Strategic Plan laid out in November 2011:
· Transform core economics:
o Underlying operating costs reduced whilst significantly investing in the growth areas of software and services.
o Transformation of our supply chain is progressing well; over 85% of volume with our core Electronic Manufacturing Services ("EMS") partners.
o Strong cash flow generation (95.1% conversion of adjusted EBITA to free cash flow) reflecting the benefits of working capital re-alignment, the EMS transition plus further measures to improve cash flow efficiency.
· PayTV hardware leadership:
o Reconfirmed market leader; global number 1 in Media Servers6, Set-top boxes ("STBs")7 and Telco Gateways8.
o Maintained position at the forefront of Media Server development with wins and deployments at major operators including Liberty Global and Get TV.
o Continuing strong Media Server demand in North America; Pace has shipped over 2 million GenieTM Advanced Whole-Home HD DVRs for DIRECTV since launch in June 2012 and the next generation HR44 GenieTM Media Server and C41 mini GenieTM client devices are now in production.
o Selected by GCI to deploy TiVo enabled Pace Media Server solution.
o Achieved next generation hardware wins at longstanding tier one customers across all regions.
· Widen out into Software, Services and Integrated Solutions:
o Pace achieved a number of key wins and deployments across all areas of our Software and Services offerings and has a strong pipeline.
o Notable developments in the period include:
§ Telefonica Group Cable Operator - Vivo TV Brazil has selected Pace to provide integrated Zapper and PVR solutions.
§ Telmex, the largest telco in Mexico, has selected Pace's next generation ECO Service Management platform.
§ Latens software based Conditional Access System ("CAS") deployed on over 3m devices across the world; growth of over 65% in the last 12 months.
2013 Outlook
Trading in the first half of the year has been strong and the outlook for the remainder of the year has improved. As a result we anticipate that full year profits for the Group will be higher than previous guidance:
· Revenues for FY2013 expected to be broadly in-line with 2012;
· Operating margin for FY2013 is expected to be greater than 7.5%; and
· Strong cash flow to continue and Pace expects to report a net cash position at the end of 2013.

Canaccord Genuity Buy 295.55 277.70 286.00 320.00 Reiterates

Espirito Santo Execution Noble Buy 306.85 270.00 350.00 Reiterates

Exane BNP Paribas Neutral 306.85 245.00 280.00 Retains

One to keep an eye on that downtrend channel.... looks like SP is going to break through ceiling. Gone long.

SP gone through ceiling of downtrend channel.
Momentum right behind this one now.

Pace acquisition of Aurora Networks, Inc.

Strategic rationale
· Positions Pace to support operators' and consumers' constant demand for cost effective delivery of ever increasing bandwidth
· Highly profitable and growing business with blue chip customer base and market leading positions, serving over 200 customers in 50 countries, including all of the top 10 cable operators in the US
· Strong management team that has delivered 30 straight quarters of profitability
· Creates deeper and more embedded relationships with key customers
· Cross-sell opportunity across customer footprints
· Further widens Pace out beyond PayTV Customer Premise Equipment ("CPE")

Financial rationale
· Significantly accretive to earnings in 2014 and accelerates Pace towards improved profitability target of 9% Return on Sales in 2015
· Expected to generate annual run rate cost synergies across CoGs and Opex of $8m by the end of 2014
· The headline consideration represents a historic EV/EBITDA[4] multiple of 10.5x before synergies and 8.2x after expected annual run rate synergies, based on the results of Aurora for the 12 months to 31 March 2013
· Opportunity to apply robust Pace working capital controls to deliver significant working capital benefits
· Following completion of the Acquisition Pace expects to be conservatively levered and retain significant financial flexibility

Breakout. What a lovely return is such a short term period. Very nice.

Interim Management Statement

Trading Update
Trading performance in the period has shown good progress with continued momentum across the business.
· Key wins have been achieved in the period giving further confidence for 2014. Project delivery for the new wins is well underway and the underlying demand across the business is strong.
· Revenue in the period, as expected, was lower than the same period in 2012, reflecting the impact of dual-sourcing of Media Server supply by a large North American satellite customer.
· Gross margins in the period however benefitted from improved revenue mix and procurement savings resulting from improved supply chain effectiveness.
· Operating costs in the period are lower than in the same period in 2012.
· Adjusted EBITA and Return on Sales are higher than the same period in 2012, despite the lower revenue, reflecting the Company's continued progress towards improved medium term profitability.
· Cash flow in the period has been strong following the completion of the Electronic Manufacturing Services ("EMS") consolidation, working capital has been further reduced and Pace is now in a net cash position (Peak net debt of $321.7m at 31 December 2011).

Outlook
Trading in the period has been strong and the outlook for the remainder of the year is reiterated:
· Revenues for FY2013 expected to be broadly in-line with 2012;
· Operating margin for FY2013 is expected to be greater than 7.5%; and
· Strong cash flow will continue, and excluding acquisitions, Pace expects to retain a net cash position through to the end of 2013.

Another up leg?

Pace plc: Completion of Aurora Networks acquisition and Trading Update notification

Pace plc ("Pace" or the "Company") today confirms the completion of its acquisition of Aurora Networks, Inc. ("Aurora") (the "Acquisition").

On completion of the Acquisition, Pace paid Aurora shareholders US$323 million comprising a headline consideration of US$310 million (on a debt and cash free basis) plus a further US$13 million relating to tax benefits to be recovered over the three years post Acquisition.

The consideration for the Acquisition is subject to post-completion cash and working capital adjustments.

A five year term loan for $310m to finance the acquisition of Aurora Networks Inc plus a new five year $150m revolving credit facility is now in place.

Pace will make a 2013 full year Trading Update to the market on Thursday 9 January at 07:00 GMT.

-ends-

Trading Update

FY2013 expected to be ahead of guidance: operating margin not less than 7.7%, revenue growth of 2.4% to $2,460m, free cash flow in excess of $200m

Saltaire, UK, 9 January 2014: Pace plc, a leading global developer of technologies and products for PayTV and broadband service providers, today announces the following unaudited update for the financial year ended 31 December 2013 ahead of preliminary results to be announced on 4 March 2014.

The Group performed well in 2013; and full year results will be ahead of the Board's previous guidance:
· Full year revenues expected to be up 2.4% to $2,460m (2012: $2,403.4m).
· Adjusted EBITA1 of at least $190m, 20% ahead of 2012 (2012: $158.1m).
· Underlying operating margin expected to be not less than 7.7%, at least 1.1ppts ahead of 2012 (2012: 6.6%).
· Free cash flow2 in excess of $200m (2012: $182.7m).
· Debt repaid in full prior to the end of the financial year3 (zero debt), cash position in excess of $30m as at 31 December 2013 (31 December 2012: $163.3m net debt).

The Group has made good progress throughout the year in the execution of our Strategic Plan:
· Leadership in PayTV hardware:Pace maintained market leadership positions in Set-top Boxes, Media Servers and Gateways whilst making further progress into previously under-penetrated markets such as cable in Europe and IPTV.
· Widen out into software, services and integrated solutions: Pace built on the momentum of 2012 with a number of key wins and a strong focus on product and customer project delivery for major launches and deployments in 2014.
· Transform core economics: Continued focus on efficiency has delivered further sustainable overhead savings and the transformation and rationalisation of our supply chain was completed, delivering significant benefits in 2013 and beyond.

Preliminary Results

Strong performance in 2013: Adjusted EBITA up 22.5% to $193.6m, Free cash flow up 14.4% to $209.0m, Dividend up 22% to 5.49c per share.

Financial highlights
· Revenue up 2.7% to $2,469.2m (2012: $2,403.4m).
· Adjusted EBITA1 up 22.5% to $193.6m (2012: $158.1m).
· Operating margin2 up 1.2 percentage points to 7.8% (2012: 6.6%).
· Profit after tax up 65.6% to $96.7m (2012: $58.4m).
· Basic EPS up 60.8% to 31.2c (2012: 19.4c) with Adjusted basic EPS3 up 26.2% to 44.3c (2012: 35.1c).
· Proposed final dividend 3.66c per share, resulting in full year dividend of 5.49c per share, a 22% increase on 2012
(2012: 4.50c).
· Free cash flow4 $209.0m (2012: $182.7m).
· Debt repaid in full prior to the end of the financial year (nil gross debt), cash position of $33.0m as at 31 December 2013
(31 December 2012: $163.3m net debt5).

Operating highlights
· Increased operating profit through top-line growth, improved revenue mix, supply chain efficiency and increased operational efficiency.
· Highly accretive acquisition of Aurora Networks, Inc ("Aurora") (completed on 6 January 2014), a leading provider of Optical Transport and Access Network solutions.
· Further progress made against the Strategic Plan laid out in November 2011:
o Transform core economics:
§ The rationalisation of the Electronic Manufacturing Services ("EMS") footprint was completed, delivering significant operational and financial benefits in 2013 and beyond.
§ Continued focus on efficiency has delivered further sustainable overhead savings; $16.2m (5.8%) underlying savings compared to 2012.
§ Further Working Capital reductions and robust cash management enabled a second consecutive year of over 100% free cashflow to EBITA generation.
o PayTV hardware leadership:
§ Reconfirmed as the market leader in PayTV hardware; global number one in Media Servers6, Set-top boxes ("STBs")7 and Telco Gateways8.
§ 2.6% revenue growth in PayTV hardware (2012: 3.9%) to $2,355.4m with strong demand from major customers and a number of wins achieved in previously under-penetrated markets such as cable in Europe and Internet Protocol Television ("IPTV").
o Widen out into Software, Services and Integrated Solutions:
§ Built on the momentum of 2012 with a number of key wins across all areas of our software and services offerings and a strong focus on product and customer project delivery for major launches and deployments in 2014.
§ 5.4% growth in software and services revenue to $113.8m (2012: 7.6% to $108.0m).


2014 Outlook
Considerable progress has been made in delivering on our strategy in 2013 and there remains further opportunity in 2014 to build on this success to develop and improve the performance of the Company.

The Board is confident that the Group (including Aurora) will make further progress in 2014:
· Revenues for 2014 expected to be c. $2.7bn.
· Operating margin for 2014 is expected to be c. 8.5%.
· Strong cash flow will continue, and Pace expects to generate in excess of $185m of free cash flow.