Pace has published an unaudited update for the financial year ended December 31st ahead of preliminary results to be announced on March 3rd.
– Record Q4 revenue has resulted in a strong finish to the year. Full year revenue expected to be up 6 per cent to $2,610 million (2013: $2,469.2m)
– Adjusted EBITA of at least $240 million, 24 per cent ahead of 2013 (2013: $193.6m).
– Underlying operating margin expected to be not less than 9.2 per cent, 1.4ppts ahead of 2013 (2013: 7.8 per cent).
– Free cash flow in excess of $200 million (2013: $209.0m).
– Net debt of less than $95 million as at December 31st 2014 (2013: $33m net cash). Since the completion of the acquisition of Aurora Networks for a headline consideration of $310 million on January 6th 2014, net debt has reduced by more than $180 million (65 per cent).
Commenting on the announcement, Mike Pulli, CEO, said: “Pace has performed very well in 2014 with a particularly strong second half to the year. We have launched a record number of products across the globe and continue to lead the market in both product innovation and the service we deliver to our customers. Demand from our customers has remained strong and we continue to win new business. The Company has made further good progress in the execution of our Strategic Plan and has achieved improved profitability and strong cash generation for the third year in a row.
He contimued: “The Aurora Networks acquisition has performed above expectations and has enabled Pace to widen out into the network infrastructure space and build deeper, more embedded relationships with our customers. The Board are confident that, through Aurora, potential further acquisitions and the ongoing delivery of our Strategic Plan, Pace will further strengthen its position as a market leading solutions provider for the Pay-TV and broadband industries. We have good momentum and are confident of making further progress in 2015 and beyond.”