Pace significantly upgrades trading advice

Chris Forrester

UK set-top box supplier Pace issued a “significant” upgrade to its trading position after the markets closed on Tuesday afternoon. The statement contained nothing except good news.

“Since announcing preliminary results on 3 March 2009, demand for Pace's products has increased across many of the Group's global markets and technologies,” said a company statement, which went on to talk about strong market demand for its digital and HDTV products.

“Consequently, Pace now expects that its performance will result in a very significant increase on management's expectations for 2009 and also that it will be in a strong position as it enters 2010. The market for high-end products is growing rapidly, even in an advanced market such as Western Europe, less than 2% of television households are so far subscribing to a high definition TV service (Screen Digest data, April 2009). The Pace Board recognises that these factors have created an exceptionally positive situation for Pace, which is expected to continue, reflecting the strong foundations established over the last three years.”

Pace shares had been trading at about 80p for most of last month, rising during the past few days steadily to 99p, and finished on Tuesday at 99.5p, giving the company a market capitalisation of £297m.