Founder’s backing for Pace board

Pace’s board is under heavy pressure after the set-top box maker announced a shock profits warning on Tuesday, sending the Saltaire-based company’s shares down 40 per cent to 93p.

Yesterday they rallied to close up five per cent at 98p. Chairman Mike McTighe bought 20,000 shares at 96p.

Mr Hood said: “I think there has been a massive over-reaction, the fundamentals are still sound. I am strongly behind Neil (chief executive Neil Gaydon). I think he has made a remarkable turnaround in the company’s fortunes and he has strong internal support from the staff, which is always a good sign.”

But he expressed dissatisfaction with Tuesday’s announcement, blaming the group’s financial PR.

“I think the way the announcement was made was very poor. I don’t yet really understand the timing, just two days before the AGM.”

He said the downturn in operating profits must have been suspected when the group announced annual results in March.

“Poor financial PR has always been one of Pace’s weaknesses, and I think they have been very badly advised yet again. This is one area where I would like to see changes made,” he added.

Mr Hood oversaw the company through the 1980s and 1990s.