Pace predicts strong year
Pace used its interims to predict a strong year. The British STB manufacturer said YoY it was producing more profit on lower turnover with revenue down 13.6 per cent to $1,139 billion but gross profit up 5.4 per cent to $245.8 million. Adjusted EBITA was $106.3 million against $96.7 million last time. Profit after was up 9.3 per cent to $55.4 million against $50.7 million and the to June 30th dividend was lifted 23 per cent to 2.25c per share.
The company said the increased operating profit on reduced revenues was due to Aurora contribution, improved revenue mix, improved supply chain efficiency and increased operational efficiency.
Commenting on the results, Mike Pulli, Chief Executive Officer said: “I am pleased to report we have had a successful first half of the year and have made considerable progress. Pace is continuing to evolve into a more profitable, cash generative business with a broader spread of customers. As expected, revenue was lower than the comparable period, however, we have delivered strong profit and cash flow growth through the contribution of Aurora, a better mix of revenue, improving supply chain effectiveness and improving operating efficiency.”